Amazon launched a new Referral Brand Bonus Program on July 15, 2021. This program aims to help sellers accelerate referral traffic growth. For now, it is available exclusively for sellers who own a brand and are registered in the Brand Registry.
Registered sellers will be able to profit from promotions outside of Amazon and also earn from sales.
In this article we will tell you everything you need to know about the program; so, stay tuned!
Within the Amazon brand reporting program
Amazon sellers can use the Referral Brand Bonus Program as a way to make money through non-Amazon marketing campaigns. Brands just need to drive traffic to Amazon's platform and get a monetary bonus for it.
Basically, members of the program can get a 10% bonus on average from any sale outside of Amazon.
Registered sellers receive the bonus as a credit for a referral fee mark. A referral fee is a percentage that Amazon charges for each sale made on its website.
The actual price will depend on the category but usually varies between 8% and 15% (click here to see the allocated bonus for your products).
As an incentive, Amazon offers the same bonus for purchases from your product catalogue even 14 days after the customer clicks on the ad.
If you are a non-branded seller, you can join Amazon Associates. It also works to monetize marketing campaigns outside of Amazon that drive traffic to its market.
Why join the Brand Referral Program?
Out of 1,000 US brands, 88% of brands use some sort of advertising program on Amazon, a 21% increase from 2020. This shows that brands are finding success by combining their marketing campaigns with strategies. Amazon advertising.
The Referral Brand Bonus Program is a great opportunity to increase sales and promote your brand. Registered members are sure to see an increase in sales, at the same time that their non-Amazon marketing efforts pay off.
It is about exploiting the initiative.
The cost of advertising within Amazon should be sufficient for sellers to always consider driving traffic from campaigns outside of Amazon, so the strategy alone is worth a try. The Brand Referral Program is an opportunity to make money with a convenient brand owner strategy. It is a win-win situation.
If you're a seller and haven't considered Amazon advertising as part of your strategy, this is a great opportunity to try it out and start scaling your brand further. You can test the waters by experimenting with Facebook, Instagram, YouTube, and TikTok.
Brand Reporting Program | Other factors to consider
Amazon's huge customer base
The truth is, that Amazon continues to hold a large chunk of US eCommerce shoppers. Amazon has been able to build a reputation for getting users to buy, but it's not usually in the marketplace where customers interact with a brand. The program could be a way for users to shop from Amazon and interact with your brand elsewhere.
Additional benefits
Make your marketing efforts more efficient and accelerate your growth by driving traffic from ad campaigns outside of Amazon.
Get bonuses of an average of 10% from non-Amazon traffic-driven sales.
Get the chance to receive the same bonus for additional product sales for 14 days after shoppers first click on the ad.
The bonus varies, so some products get better benefits than others.
For example, there's a 5% drop from the 7.14% referral fee for consumer electronics and a maximum of 30% on offer for Amazon device accessories, which have a 45.9% referral fee. So, you can get more than 10% on average, think about the products you sell.
What's in it for Amazon?
It is already clear that it is a program that benefits trademark owners, as they can benefit from the reduced cost of referral fees.
This way, brands can rethink their advertising budget and focus on campaigns that will drive traffic to Amazon instead of advertising there.
So what does Amazon get in return?
On its own, the initiative is designed to overcome growing competition. It will promote a new way to influence how brands drive their traffic to paid media.
Therefore, by giving brands an incentive so they can focus their advertising efforts on driving traffic to Amazon and buying from there, Amazon gets more traffic and better organic search placements for products.
The other side of the coin
There are sellers out there who are sceptical of the program.
While it's true that Amazon has an enormous reach, which can make selling a little easier, the program is likely to further help Amazon maintain its dominance in eCommerce.
Other brand owners are also aware that there is a possibility that the program will not offer the same percentage in the future once Amazon begins to see an increased push from external channels.
Final remarks
Amazon's Brand Referral Bonus program offers an exciting opportunity for brands that have listings on their platforms. Brands can reduce their referral fees with this powerful tool, but they can also redirect customers to their product lists.
With the program, brands are likely to continue driving more traffic from channels outside of Amazon.
This means that more and more sellers will consider this initiative as part of their overall marketing strategy both on and off Amazon.
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