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There are many promising marketing opportunities you can take advantage of when running your store on this marketplace. Amazon FBA is one of the most popular ones. Still, recently, Amazon has announced another winning program for brand owners. Amazon referral program allows the sellers to reduce their referral fees in exchange for attracting traffic on their own at their costs, instead of using Amazon’s exclusive marketing tactics.
Let’s find out how this initiative can work for brands in 2021.
What’s the Essence and Mutual Benefits of an Amazon Referral Program
An Amazon Referral Program was launched in July 2021. The essence of the program is the opportunity for the brand owners to cut their referral fees. As you know, Amazon sellers have to pay a fee to Amazon each time they sell an item. This is the core business model that powers most of the online marketplaces.
However, with the help of a referral bonus program, you can reduce the fee since Amazon provides the sellers with an 8-15% bonus rate for every lead attracted by the brand on its own.
Below are the conditions for joining Amazon’s brand referral bonus program and receiving a bonus:
- Your brand should be a part of an Amazon Brand Registry.
- Then you should apply to join the program.
- At the next step, you should get an Amazon attribution.
This is a specific link that will prove that the lead you have attracted comes from the referral traffic you have generated on your own. For example, from Google PPC, Facebook ads, your blog, or social media marketing.
- After your lead makes a purchase, you get a 10% referral bonus for customer purchases that works as a discount for the referral fee you have to pay Amazon in any case.
What Makes Amazon Referral Program Beneficial
There is no catch in the referral bonus program recently launched by Amazon. This is one of the Amazon marketing campaigns that are actually beneficial for both Amazon sellers and the marketplace itself.
Firstly, Amazon understands that competition in their search results page can never provide every seller with equal opportunities. Those with the best seller ranking, product rating, compelling product descriptions, and thousands of customers’ reviews will always be better discoverable by the customers.
By launching an Amazon Referral Program, the marketplace allows less popular brands to drive their own traffic to their Amazon store, accelerate growth and build a reputation. Of course, attracting this traffic can’t be free, and Amazon compensates a share of your non-Amazon marketing efforts and spending by reducing your referral fee with a bonus.
And most importantly – Amazon understands that most novice shoppers will return to the marketplace to make a repeated purchase, which is another win-win. So, to make use of this program, you should develop a smart and cost-effective strategy for attracting prospective leads from the web and reducing the cost per lead as much as possible.
How to Drive Traffic to Amazon
Keep in mind the most important thing – an Amazon Attribution. As we’ve mentioned, this is a UTM link that you should use each time you set up marketing campaigns. It shows where the traffic drives from and proves that you have attracted the leads on your own. These are the most important conditions to be Amazon Referral Bonus Program-compliant.
And here are the channels you can use to attract your potential buyers.
This is the most intuitive option. What’s more, Google PPC ads work in the same way as Amazon listing ads. But keep the critical point in mind – using Google paid ads for Amazon advertising makes sense only when your items are unique. In this case, the users are more likely to start their search in Google, and only then, proceed with Amazon. For popular everyday products, searching right on Amazon is an already established behavior pattern.
Facebook and Instagram Ads
The benefit of this strategy is the opportunity to target new users and grow your business by targeting your ads at highly customized audiences. Facebook also generates look-alike audiences. This is a great option to offer your products to potentially interested users and attract high-quality traffic to Amazon.
This is quite a challenging strategy, but it can bring your leads again and again at no additional costs for you when done right. The essence of the approach is collaborating with a well-known personality in your niche and paying them for sharing the link to a product (with attribution) in their social media profiles.
In this case, you can take advantage of social proof since many modern users tend to believe the opinion of an influencer.
Overviewing and comparing your products in your blog is one more option for driving sales traffic. This is a good strategy if your users are less driven by emotions but make purchasing decisions under the influence of common sense. In this case, they are likely to dive into details, compare the options and research the use cases.
Perhaps, this is the easiest way to attract traffic to any website. The only thing you have to do is to join a reliable affiliate network and attract users to your Amazon store from third-party websites. Indeed, you will have to pay a fee to the website owner each time their users purchase from you on Amazon.
Such a concept may sound weird; still, the feedback your users can provide you with can become strong marketing content. Here is how it works. After you have attracted your leads from third-party sources and finalized the deal, ask them for the reviews with the help of SageMailer.
Such a simple strategy will be improving the efficiency and your visibility in Amazon search results. Also, the reviews will help your leads attracted from the web decide on the purchase faster.
Joining an Amazon Referral Bonus Program is an excellent opportunity to reduce your referral costs and get started with promoting your products outside Amazon. So give it a try since the conditions are pretty beneficial.
Also, be smart with your marketing campaigns and make sure to carefully calculate the cost per lead and correlate them with your actual savings.