Founded in 1994 by Jeff Bezos, the Amazon platform started as an online bookstore operated in a garage. But today, Amazon became a vast Internet-based enterprise that does not only sells books but as well as music, housewares, toys, electronics, luxury items, and many other goods. Moreover, Amazon also adopted the affiliate model in 1996 and launched the “Amazon Associates Program” where website owners, who wish to advertise any of Amazon’s products, could get anywhere between 5% – 15% commission on sales in the form of a check. But to understand how Amazon Associates Program works, one must also learn about the basics of affiliate marketing.
Affiliate Marketing Basics
Affiliate Marketing allows a person or company to earn a piece of the profit for marketing or promoting a certain product(s), owned by a large enterprise or a solo entrepreneur, into their website. Every sale made from marketing their products is tracked using affiliate links.
Technically there are 3 kinds of affiliate marketing which are the following:
In this kind of affiliate program, the merchant pays their affiliate partners whenever they send a potential customer in their money-making website and then make a purchase. While some merchants, like the Amazon, pay their associates with a fixed rate, other e-commerce website pays a certain percentage of each sale.
In this arrangement, the merchant will pay all of its affiliate partners based on how many people visit the merchant’s website using their affiliate links. Much like the amazon referral fee, their associates are paid regardless if the customer makes a purchase.
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This affiliate program is quite complex when compared to the other two above. The merchant pays their affiliate partners based on the number of people who fill out a form or sign up (more popularly known as leads) on the merchant’s website.
How Amazon Associates Program Works?
Currently, Amazon holds the most extensive affiliate program in the world called the Amazon Associates Program (also commonly known as Amazon Affiliate Program). The reason behind it is that Amazon continues to recruit affiliates openly. And since by doing it, they are making a vast amount of money. In fact, the platform currently has an army of thousands of affiliates marketing their product on different websites across the world. In return, Amazon rewards their affiliate partners with commission depending on the type of product they have promoted.
Amazon Affiliate Commission Structure
To understand how much commission does Amazon offers to their affiliate partners, we have listed them all below.
- 1.0% for electronic devices such as game consoles and video games
- 2.0% for electronic devices such as televisions
- 2.0% for software such as digitally downloaded games
- 2.5% for electronic devices such as computers, computer peripherals, Blu-Ray and DVDs
- 3.0% for any kind of toys
- 4.00% for electronic devices such as Kindle tablets, and Amazon devices, ring devices, watches, luggage, shoes, handbags, and accessories
- 4.00% All other categories that haven’t mentioned here
- 4.50% for healthcare, personal care, physical books, sports items, kitchen, car, and baby products
- 5.0% for digitally downloaded music and video, musical instruments, handmade items, and even grocery items
- 5.5% Outdoor items and tools
- 6.0% for any kinds of headphones, beauty products, branded musical instruments, business/ industrial supplies
- 7.0% for accessories and clothes, Amazon TVs, Amazon jewelry and Echo products
- 8.0% for house furniture, lawn/ garden items, home improvement items, pet products, and pantry items
- 10.0% for Amazon Coins and Amazon fashion items
Receiving Payment from Amazon Associates Program
Amazon, however, will not pay their affiliate partners unless their sales reach a threshold of at least $10. If one chooses to be paid either by Amazon gift card, direct bank deposit, or by check, they need to have at least a hundred dollars plus $15 for processing. If they fail to reach the minimum threshold, their balance is carried over to the next month and will be added to the sales they make then. Amazon pays their affiliate partners after 60 days, so, for instance, if the affiliate sales reach their threshold at the end of November, it will be paid in late December.
Advantages of Amazon Associate’s Program
A well-trusted brand
Amazon is well-known all around the world. The platform has the best product variations, solid delivery service, and high-quality service. People trust Amazon more than they trust any other eCommerce site with a similar niche, so they can’t be beaten easily.
Almost all types of products are available
Aside from affiliates, Amazon also encourages people to sell on their platform. This makes Amazon have a massive product range, like enabling them to sell almost everything. With this, their affiliate partners have a chance to promote the product they like most and not limiting them to choose with any category.
Provide extended benefits
Amazon is well-known for being the best when it comes to upselling and conversions. Thanks to their amazing selling techniques that convert, every customer is easily convinced to add multiple items on their cart. With this strategy, their affiliates also get benefitted since they can get additional profit from other products added on the cart.
Every time their affiliate partners sends a potential customer, Amazon makes sure to provide the best customer experience. Moreover, whenever the customer decides to abandon their cart, Amazon makes sure also to make follow-ups via email and persuade them to finish what they started.
Safe and reliable
The platform offers safe and secure transactions for both their buyers and affiliate partners. They ensure 100% privacy whenever their affiliate sends a customer. They also ensure that all of their affiliate partners are paid, and all of their earnings are safe.
Becoming an Amazon affiliate partner is easy. It is an excellent platform to earn passive income. After all, Amazon is a well-known and trusted brand around the globe, so affiliates don’t need hard selling. The platform has more than 3 billion items for sale, so affiliates don’t have to worry about shortages of products to promote. Become an affiliate now and take advantage of their commission structure.