You are really curious about how to make a huge amount of money like Amazon Associate, aren’t you? Actually, the answer is quite simple. Amazon.com has followed one of the most powerful marketing methods which is affiliate marketing. They have built their own affiliate program for many years. In order to imagine easily, i will show you how this system work. Firstly, you apply for an account and sign up to Amazon Associate. The registration joining to Amazon affiliate program is free. Your role is to promote Amazon products on your own blogs, websites or social channels. You will have a unique tracking ID which lets Amazon know you referred the customer to them. As a result, if your visitors or customers you referred made any sales on Amazon.com within the next 24 hours, you will receive a commission. Your commission is paid on a monthly basis.
The commission rate is calculated by many ways, but the two main method which Amazon uses is basing on the products type and how many products you have made for Amazon in that month. In term of the first method, the commission rate which amazon affiliate can be received is from 4% to 12% depending on the type of product.
The other way is that the commission rate is based on how many products get shipped in a month. It is shown in the table below:
As you see, if the product shipped in a month is from 7% to 30%, you will get 6% commission rate instead of the rate of 4%.
Actually, the commission rates are not high and do not amount too much of a pay day, if you do not sell expensive products or sell a lot of products per month. As a result, i recommend you doing both of methods to increase your commission.
There is variety of ways to get people to click your Amazon Affiliate links. The reason is that Amazon offers many tools to support you in promoting their products such as widgets, banner ads as well as link to embed on your site or blogs. However, for the purpose of this post, i am not going to focus on anything except for the way how i make money from Amazon. You can read more information about how to use widget, banners and links in affiliate’s blog or website.
The reason why i became one of the members of Amazon Associate is that i saw a huge potential for making money from Amazon. I can open my own e-commerce store with thousands of products without huge budget. And all thing i have to do is to find a way to get that Amazon Associates store traffic which converts. I don’t need to spend time to find new suppliers. Moreover, i also don’t need hire shippers for shipping products. The most important thing is that i don’t need to deal with any customer complaints or service issues. It is always the big problem with any company if you don’t have experience to resolve. It can cause the bad effects to the company’s brand any time.
My work is just simply to send customers to Amazon, and then i receive commission when a sale was made.
Do you want to know how i was going to do this? What is my plan? My answer is:
- Starting my own e-commerce website where each product would be sold via the Amazon Affiliate program
- Choosing a niche where i want to cooperate in the past for a drop ship site. However, it couldn’t get approved for suppliers
- Choosing a niche that i could find about 20,000 items which half would have high price (over $2,500) and other products have extreme cheap price (under $5)
And then i started finding out how i can start e-commerce business with the tight budget. After trying many ways, i found out that i need to build my own affiliate program to develop my e-commerce store. Actually, it is not all to make my success but it is the key point. By this way, i was able to automate the majority of my work and have new online automatically populated with Amazon Products. And i can spend time to do other marketing strategy to develop my affiliate program, website, etc.
