Home Paid advertizing services Amazon sellers weigh the pros and cons of the new referral program

Amazon sellers weigh the pros and cons of the new referral program

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Amazon has launched a new program to reward brands that generate sales in its marketplace. Similar to its affiliate program, the Brand Referral Bonus program offers participating brands a mean 10% credit on sales resulting from their non-Amazon marketing efforts. (Eligible brands have the option of participating in either program, a spokesperson confirmed.)

Brands earn the bonus – in the form of a credit against their referral commissions – on purchases made within 14 days of a customer clicking on an ad. Participants will use Amazon Attribution to measure Amazon sales generated by their non-Amazon marketing efforts.

The Brand Referral Bonus is available for brands that sell in the Amazon US Store and are listed in the Amazon Brand Registry. The bonus is only applicable to sales on products of a brand.

Announcing the program, Amazon’s Branding Program and Selling Partner Development Manager Mike Miller said, “With over 300 million customers worldwide, Amazon is one of the best places for them. brands to launch new products. We are launching the Brand Referral Bonus to help brands increase their marketing spend. When brands direct their non-Amazon marketing traffic to our store, we will provide them with a bonus averaging 10% of applicable sales.

In discussing the program on the discussion boards, Amazon seller “Summer.glau” summarized the benefits as follows:

“Hmmm, so if I bring my non-Amazon buyers (say from our own online store) to Amazon, I get 10% off the 15% referral fee.

“Overall, it can help get a better return on ad spend, as people would be more confident about buying from Amazon than from a random online store. Plus, the 5% difference is not that big considering the card fees and other costs of running your online store. Overall this sounds like a win-win. But coming from Amazon you can’t help but wonder ” what’s the catch “?”

Amazon seller “PureDesignOnline” summed up their concerns about the program:

“Let’s see. I basically pay credit card fees + 1% on my online store. I have full control over returns (including fraudulent returns, which don’t exist on my www site), and I don’t have to go through a huge amount of time with broken automation and under-trained CSRs to have a chance of getting what my platform promises, which means my ROI is higher outside of fees I don’t have to worry about my money being held hostage, black hat sellers on my listings, ASIN merge errors, etc. etc. etc.

“However, if I move the sale to Amazon, I pay 15-10%, which is more than my platform, and help Amazon complete Walmartification of the Internet, bankrupting my online store. FUJB.

Another seller, Aquaponic_Lynx_LLC, summed it up succinctly:

“IF you would advertise non-Amazon to send customers to your Amazon listings anyway, then yes wonderful (while it lasts anyway.)

“But if you spend your advertising outside of amazon to send business to your own store or some other platform and you find it profitable, I see no reason to change just because of that.”

If you are a brand owner selling on Amazon, let us know what you think about the new program and if you plan to participate.

Ina Steiner

Ina Steiner
Ina Steiner is co-founder and editor-in-chief of EcommerceBytes and has worked in e-commerce since 1999. She is a widely cited authority on market selling and is the 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 topical tips to [email protected] See the disclosure at EcommerceBytes.com/disclosure/.

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