Amazon Affiliate Marketing Fees

Amazon Sellers Weigh Pros and Cons of New Referral Program

Amazon Sellers Weigh Pros and Cons of New Referral Program
Written by publishing team

Amazon has launched a new program to reward brands for increasing sales in their markets. Similar to its referral program, the Brand Referral Bonus program gives participating brands an average 10% of the credit on sales generated by their marketing efforts outside of Amazon. (A spokesperson for eligible brands confirmed the option to participate in either program.)

Brands earn the reward – in the form of a credit on their referral fee – on purchases that occur within 14 days of a customer clicking on the ad. Participants will use an Amazon referral to measure Amazon sales driven by their marketing efforts other than Amazon.

The Brand Referral Bonus is available to Brands that sell in the US Amazon Store and are registered with the Amazon Brand Registry. The bonus applies only to sales of the brands’ own products.

Announcing the program, Mike Miller, Head of Amazon Branding and Seller Partner Development said: “With over 300 million customers worldwide, Amazon is one of the best places for brands to launch new products. We are launching a Brand Referral Bonus to help brands businesses to increase their marketing spend. When brands direct non-Amazon marketing visits to our store, we will reward them at a rate of 10% of applied sales.”

When discussing the program on discussion boards, Amazon seller “Summer.glau” summed up the advantages as follows:

Well, if I bring a non-Amazon buyer (eg from our web store) to Amazon, I’ll take back 10% of my 15% referral fee.

“Overall, this may help get a higher return on ad spend because people trust buying from Amazon more than buying from a random web store. Also, the 5% difference doesn’t matter all that much about card fees and other costs of running your online store. Overall, it sounds like a win. But coming from Amazon, I can’t help but wonder ‘what’s the point?’

Amazon seller PureDesignOnline summed up his concerns about the software:

“Let’s see. I basically pay a credit card fee + 1% on my web store. I have complete control over returns (including fraudulent returns, which don’t exist on my website), and I don’t have to suffer From wasting time with malfunctioning automation and untrained CSRs to having a chance of getting my platform on promises, which means higher ROI outside fees.No need to worry about my money being held hostage, black hat sellers in my listings, and ASIN abuse , etc., and so on.

“However, if I move the sale to Amazon, I will pay 15%-10%, which is more expensive than my platform, and help Amazon complete Walmartification for the internet, which makes my web store out of business. Phob.”

Another vendor, Aquaponic_Lynx_LLC, summed it up succinctly:

“If you’re going to do non-Amazon advertising to send customers to your Amazon listings anyway, great (while it goes on anyway).

“But if you’re spending ads outside of Amazon to send your business to your own store or other platform and find it profitable, I don’t see any reason to change just because of this.”

If you’re the owner of a brand that sells on Amazon, let us know what you think of the new program and if you plan to get involved.

Ina Steiner

Ina Steiner
Ina Steiner is the co-founder and editor of EcommerceBytes and has been reporting on e-commerce since 1999. She is a widely cited authority on market selling and author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book “Blogging Heroes” (Wiley 2008). Follow her on Twitter at ecommercebytes and send news tips to ina@ecommercebytes.com. See the disclosure at EcommerceBytes.com/disclosure/.

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