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How does Amazon Referral Fee Works and Learn How to Earn Extra Using It

Amazon referral fee, or more famously known as Amazon affiliate program, or Amazon associates, allows a person or a brand to recommend and promote any Amazon products on their money-making websites in exchange for a commission. However, you only get a referral fee if your site visitor clicks your Amazon referral link and buys the promoted item(s) on the Amazon site.

The referral fee or associate program is made available not only to websites and blogs but also to all social media channels, and even to some mobile apps.

The Basics of Amazon Associates and How to Earn from It

To enjoy the perks of Amazon referral fees, you must first register to become an Amazon associate. However, even if you can promote products using all the social media channels you currently have, you still need a website or a blog to qualify. And that’s not all. Your website should contain high-quality content as well as a large number of audiences. If you have those requirements, you can create an Amazon associate account and start recommending or promoting Amazon products on your website. Also, signing up is easy, and you can quickly do it anytime.

If your site is still low on traffic and doesn’t have enough content, then we highly recommend building and improving your site’s performance and traffic first before applying to become an Amazon associate. Otherwise, your applications might get rejected and lose the opportunity.

Also, below are the other requirements that Amazon currently requires during the application process:

  • Sadly, if your website falls in the criteria of unsuitable sites, you will get denied in the Amazon associates program.
  • Your website must be providing “original content” — meaning, your website should only high-quality content.
  • Your website should also contain at least ten articles or blog posts.
  • Your website should not require membership.

While there are no specific traffic requirements, you still need a large number of visitors to stay in the program. After all, Amazon requires at least three qualified sales within the next six months.

Amazon Associates Program vs. Other Affiliate Networks

Aside from Amazon, you can also apply for affiliate programs in other eCommerce platforms such as eBay and ShareASale. However, none of these eCommerce sites can match the tremendous volume of products being sold on Amazon. This means that you’ll have more opportunities to sell the best product in the market using the Amazon associates program.

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Furthermore, when compared to other eCommerce networks, Amazon is way more popular than them since most people already know about the Amazon website. The conversions rate will be much higher and better since most people regard Amazon as a highly trusted brand.

However, the only downfall of the Amazon associates programs is that Amazon doesn’t offer commissions higher than other known affiliate networks. One can get commissions as much as 10% of the sale value of specific product categories like luxury beauty products and Amazon coins. 8% for home furniture and other home improvement products. 6% for industrial supplies and musical instruments. 5% for outdoor tools. 4% for Amazon exclusive products. 2.5% for computers and their components. And 1% for video game consoles.

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Amazon Associates Program Pros

#1 Amazon is Ginormous

Because a lot of people trust Amazon, the website often accepts millions of traffic per month. In fact, the Amazon platform now has almost a hundred million Prime members. Moreover, these prime members usually spent more than a thousand dollars per year on Amazon, while non-prime members spent an average of $600 per year. With Amazon’s ginormous size of loyal customers, you are assured that selling their products is quite more straightforward compared to other eCommerce platforms.

#2 High Conversion Rates

Amazon hasn’t just sold goods on the internet for more than 20 years, they’ve successfully dominated it, thanks to their unmatched selling strategies that really convert. The platform even uses an AI to analyze every customer’s purchasing behaviors and recommend products before the checkout process to persuade the shopper to add more items. Also, when a shopper leaves their cart, Amazon has a special feature that will go after the shopper, send an email reminding them about their abandoned cart, and persuade them to go back and finish their transactions.

#3 Amazon’s Affiliate Cookie

When you have a visitor that clicks your Amazon affiliate link and buys any item within the given 24 hour period, you will earn a commission for every product that has been purchased by that person. For instance, on your website, you are promoting a book about fitness where they can buy the book straight on the Amazon website using your link. Fortunately, they ended up purchasing a treadmill in the process. With this, you will still get a commission from the purchased treadmill, even if it’s not included in your affiliate link from your site. And because Amazon is excellent in conversion thanks to their upselling skills, it will give you the opportunities to earn more in the process.

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#4 The Referral Fee Program is Free for Everyone

Thankfully becoming an Amazon associate is free. However, as we have mentioned earlier, you need to have a working website that provides high-quality content to your visitors and a good number of daily web traffic.

#5 Minimum Sale Requirement

Aside from having a good website, Amazon only requires their associates to generate at least three sales within the next six months after their approval to stay in the program. However, one should take note that Amazon carefully analyzes your first three purchases if they are from a legit source or not.

#6 Excellent Customer Service

When it comes to customer service, Amazon will handle it for you, so you don’t have to worry in case an issue arises. In addition, Amazon provides excellent customer service that is being handled by experts, so you are assured that your reputation for recommending their product is safe. This is why being an Amazon associate is a good source of passive income because what you just need to do is to endorse their product and take care of everything else after that.

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#7 Reporting Tool

When you become an Amazon associate, the platform will provide a useful reporting dashboard that provides analytics so you’ll know how to optimize your promotions further. You can utilize this feature to understand better your target market about what they want and their buying patterns. Once you’ve seen the buying trend, you’ll be able to curate content that will complement not only your site but also the product you are promoting.

#8 Direct Payment Option

Another great thing about being an Amazon associate is that the platform will pay you directly through Amazon gift cards or direct deposits using your savings account. It is also possible to receive your earnings in the form of checks. However, it will cost you $15 for processing fees.

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Amazon Associates Program Cons

#1 Email marketing is not allowed

You are not allowed to include any of your Amazon affiliate links with your email marketing campaign. According to Amazon associate program agreement, Any associate links can only be used on approved associate websites. Furthermore, associate links are not permitted in emails, newsletters, or in any offline manner.

#2 Amazon is quite strict with their policies

It is crucial that one should regularly check the Amazon associate program agreement for changes since violating any of them would only mean banishment, and worse, you’ll also lose any earnings that you currently have that haven’t been paid out.

#3 Lower Payouts compared to other affiliate platforms

As we have mentioned earlier, the maximum commission rate you’ll get is only 10%.

#4 Commission rates may change without prior notice

In 2017, Amazon reduced their commission rates dramatically, and it can happen again in the future, so there are no absolute guarantees that the current commission rates won’t change. However, one should also take note that other affiliate platforms also do the same.

#5 Selling Opportunity is only for 24 Hours

To generate earnings, your visitor who clicks your Amazon affiliate link should make a purchase in the next 24 hours. Otherwise, if they made any purchase after a couple of days, then you won’t be getting any commission from their purchases. If they revisit your website and click your affiliate link again and make a purchase on the same day, you’ll have a commission for every item they buy.

Moreover, in case of cart abandonment or putting an item in their cart on the platform, you still have 90 days grace period for them to continue their checkout transaction and still eligible to get commissions.

Final Thought

Amazon associates program is an excellent source of passive income thanks to their enormous product catalog and loyal customers. You can find almost every known product on the platform that is related to your website’s niche to find the product to promote is easy. Moreover, thanks to their upselling feature and persuasive selling strategies, they offer the highest conversion rates compared to other affiliate platforms.

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