Would you like to start a business with as little effort as possible and thus secure a good extra income? A very good idea, but most of the time it just stays with this thought. But what if we told you that this idea can be implemented very well?
That it is possible to generate passive income with little effort? Curious? Then the Amazon Affiliate Business could be the right solution for you. Because the world’s largest online trading platform offers you a sophisticated affiliate program where you simply earn your money through advertisements.
Another form of Amazon affiliate business is that you use the warehouse logistics that already exist at Amazon and save yourself from having to keep your own warehousing. In this article, we want to explain to you exactly how business models work.
Are you toying with the idea of successfully building your own Amazon affiliate? Then you are exactly right here! In this Amazon Affiliate article, we will answer the following questions:
- What is Amazon Affiliate?
- How can I make money with Amazon Affiliate?
- How can I generate an extra income with Amazon FBA?
- What are the requirements?
- How do I sign up for the Amazon Affiliate Program?
- How can I increase my earnings?
Definition: Amazon Affiliate
First things first: What exactly is an Amazon Affiliate? The Amazon Affiliate Program is a free affiliate program run by the mail-order company Amazon.com. With this affiliate program, it is possible for a content creator to earn money with website content.
With the help of simple link creation tools, website operators can give their website visitors recommendations for products, link them directly and earn money with this advertising. So you can get a commission of up to ten percent and earn good money on the side. Sounds very lucrative, doesn’t it?
Earn money with advertisements: The classic Amazon affiliate business
This business model works particularly well if you run a well-visited website or blog. Then you can easily generate a good extra income with the help of the Amazon Affiliate Business. All you have to do is follow these steps:
- Registration for the Amazon affiliate program (via Amazon.de),
- Installation of advertising material (usually advertising banners) on your website,
- Build a lucrative income through commission payments from Amazon.
Basically, it works very simply: After you have placed ads on your pages, all you have to do is wait for someone to visit your website, see the ad, click on it, be taken to the advertised product and order it from Amazon. And because of your personal tracking ID, Amazon recognizes that the buyer came to the website through you.
So Amazon pays you a fixed commission for this, which can be between one and ten percent of the purchase price. That’s how it works!
The big advantage of this method is that you do not need your own products and therefore do not have to set up a warehouse. All you have to do is look for the right products on Amazon for your website or blog. You then advertise these using the advertising material provided. But be careful.
Make sure that both fit together thematically. For example, if you run a blog about model railways, advertisements for vacuum cleaners are of course counterproductive. Advertising material for model-making accessories is much better suited here.
THE ADVANTAGES OF THE AMAZON AFFILIATE BUSINESS
- A large variety of products.
- High customer loyalty through good customer service.
- Integration of links is possible without any technical know-how.
- Due to good WordPress compatibility, descriptive preview boxes can be placed.
- No effort.
- Reliable commission payment.
THE DISADVANTAGES OF THE AMAZON AFFILIATE BUSINESS
- not every product can be used successfully for the affiliate product
- depending on the product category, the commissions can be very small
- the cookies of the links are limited to 24 hours
- without reaching a high income possible
- Adblockers often prevent sales
EXAMPLE OF AN AMAZON AFFILIATE BUSINESS
A very good example of an Amazon affiliate business is the website bestreviews.com. On this website, different products are compared in different blog posts and connected directly to Amazon via a link.
So if a website visitor reads an article about the best gaming computers, he can not only get valuable information but also a direct product and price comparison of the best models. By clicking on the object of his choice, he goes directly to Amazon and can then order the computer there.
Fulfilment By Amazon (FBA): Earn a lucrative side income without storage
Another method is the FBA method, which is also gaining popularity among entrepreneurs. Fulfilment by Amazon means that you sell your own products, not in your own shop or online shop, but via Amazon. You have two options:
- You send the goods yourself from your own warehouse.
- You pass on your goods to the Amazon warehouse, which takes care of the shipping for you.
If you want to save yourself money and work, just use FBA. Translated, this means: “Order processing by Amazon”. Once you have registered as a retailer with Amazon, you can select this special service by clicking on “Shipping by Amazon” and send your goods to the various Amazon logistics centres. They are stored there and sent from there to the customer after an order has been placed. But wait a minute:
Amazon does a lot more for you. Because the company makes its shipping service available to you and also accepts returns. So after you have sent the products you sell to Amazon, you no longer come into contact with them at all, because the online giant has all the processes under control. Awesome right?
THE ADVANTAGES OF AMAZON FBA
- no cost of own storage (no rental or utility bills);
- no time expenditure for self-executed mailings (packing, marking, franking, taking to the post office);
- no hassle due to necessary returns (Amazon employees take the necessary steps);
- good visibility of the products on Amazon (better ranking through participation in the FBA);
- no shipping costs for buyers (when participating in the FBA, automatic service from Amazon Prime);
- Amazon takes care of customer support in the respective national language.
- You can usually have the affiliate marketing taxes set to zero for sales tax since Amazon Affiliate is a partner based in another US state or European country.
THE DISADVANTAGES OF AMAZON FBA
But there are not only advantages to using Fulfillment By Amazon. There are also risks associated with such a service, and we want to share these with you as well. If you have decided to participate in this Amazon affiliate program, this means, among other things, that you:
- No longer have any influence on the ordering process (the entire process is up to Amazon).
- Have to control your merchandise management closely (non-deliverable products lead to disadvantages such as a poorer ranking on Amazon).
- Packages sent for you cannot brand your own logo and thus advertise your company – Amazon “labels” the packages with its branding).
- Bear the costs of the service (storage costs are calculated according to the type, quantity and size of the relevant product).
- Have to reckon with an increased risk when selling abroad.
EXAMPLE OF AN AMAZON FBA BUSINESS
The Bartformat online shop is a very good example of a successful Amazon FBA business. In this online shop, customers get everything to do with beard care. From shampoos, oils, combs and scissors to complete care sets, everything is there that is needed for professional beard care. The slogan: beard care in apothecary quality. Not only the shop looks high quality, but also the products. In addition to this shop, the brand is also available as its own sales channel directly on Amazon. In addition to the products, customers also receive valuable information on an associated blog.
Requirements to be able to earn money
With the classic Amazon affiliate business, it is necessary that you ensure sufficient traffic on your existing Internet presence. The more users visit your site, the greater the chance that the ad will be clicked on and something will be bought as a result. An important rule here is that about one percent of all visitors order goods!
So we want to explain the whole thing to you again. The following – of course purely theoretical – calculation shows possible revenue scenarios: If you have 1,000 visitors per day, then on average around ten people will buy a product you advertise for the price of ten euros.
With a commission of four percent, that would be an income of four euros a day and USD 1,460 a year. But if you have 20,000 visitors a day, then you already earn a handsome amount of USD 292,000 a year. Yes, that is possible.
For this reason, not only taking care of good traffic is a big responsibility, but also the search for suitable products. So it’s really, really important that you promote products on your site that you think your visitors will like and search for. This is really the key secret.
By participating in the Fulfillment By Amazon service, you can then generate a high additional income in a relatively simple way. But you would have to agree that Amazon takes some important tasks out of your hands. Your income increases due to the elimination of the costs for your own storage. But be careful:
The cooperation with Amazon is only worthwhile if the fees you have to pay to Amazon are not too high. Since the online giant accepts almost all returns and of course charges you for them, the costs can quickly outweigh the benefits. In addition, Amazon levies penalties for storing products that have not been sold for a longer period of time. So please be aware of these risks!
How to sign up for the Amazon Affiliate Program
If you would like to register with the Amazon partner program, this is done in five steps:
- Go to the Amazon PartnerNet page and click the Join Now button.
- Next, you will be redirected to the login page where you log in with your Amazon account. If you don’t already have an account, now is the time to create one.
- Then you enter the URL of your website on which you want to advertise Amazon products.
- You can now make further settings in your personal Amazon profile. For example, specify the categories you want to promote or how visitors come to your website.
- In the last step, you have to confirm your details. It will now take three to five days for Amazon to process your application. After that, you can start right away.
3 tips to increase your Amazon Affiliate earnings
Now that you’ve signed up for the Amazon affiliate program, it’s all about increasing your sales rate. After all, the whole thing is only worthwhile if you generate a certain number of sales. We would like to give you a few tips for this below.
1. CHOOSE THE RIGHT PRODUCT CATEGORY
Of course, you can now promote products that yield the highest commissions. However, this is not always the best approach. Choosing the right products should be more about choosing the products that fit your brand well. After all, users usually come to your site for a specific purpose. If you are now promoting a product that does not fit the topic of your site at all, the probability of a sale is almost zero. So see which products fit your website and which products you are really excited about and convey that to your readers. Authenticity is an important prerequisite for being successful with your Amazon affiliate business.
2. HIGHER SALES THROUGH SEO
The SEO optimization of your site is also of enormous benefit to your Amazon affiliate business. After all, the basic requirement for customers to buy products through your links is that they find your site. But not only that: When users land on your page, they usually had a specific search intent. They wanted to find out about something and hope to find it on your site. So it is important that you use this search intent and offer them the products they were looking for.
3. CONSTANT OPTIMIZATION THROUGH ADVERTISING REIMBURSEMENT REPORT
Amazon provides a comprehensive report on all sales and generated advertising reimbursements. You should use this too. It tells you which products work well on your site and which integration is the most suitable. This way you can always adapt the products and offer the right ones for your website visitors.
Conclusion: Amazon Affiliate Business – a good way to a good side income
With each of the ways shown here, you can secure a lucrative side income with the help of Amazon. However, in both cases, you have to invest time in order to be successful. Because a business and a lucrative side income do not build up on their own. Patience is also important because hardly anyone has become a millionaire or a successful businessman overnight.
For the reasons mentioned and because of the risks, this FBA partner program is particularly suitable for you if you already operate an online business and want to increase your sales figures, or if you are seriously considering opening an online shop. Then Fulfillment By Amazon can be a good supplement to generate an even higher additional income.
If you want to generate a purely passive side income, a classic Amazon affiliate business is certainly the easier way to be successful. Here you have to do the main work at the beginning and later you only have the task of providing interesting content on your pages in order to offer your followers something and thus maintain the traffic.