Many businesses have taken advantage of e-commerce marketplaces in today’s digital age. However, brands are faced with fierce competition. Therefore, many sellers have opted to work with Amazon to reach consumers. With so many brands working through Amazon, sellers must look at how they can market their brands to stand out. In recent years, Amazon has initiated several programs that offer innovative options for sellers to reach a broader customer base. One way is Amazon’s Brand Referral Bonus Progam. Please continue reading to learn who qualifies for this program and how the proficient AVASK Group can help you grow your e-commerce business.
What is the Brand Referral Bonus Program?
In July 2021, Amazon notified sellers of its new Brand Referral Bonus Program. This program was created to help brands reach a broader customer base and increase revenue. Essentially, this program incentivizes and rewards sellers for driving external traffic to Amazon listings from off-Amazon marketing sources. Registered sellers enrolled in this program will receive a bonus of 10% of the sale of every purchase by a customer from an off-platform referral source. The 10% bonus will be a credit on the seller’s referral fee (the cost associated with each sale made by third-party sellers on Amazon.) It’s crucial to understand that referral fees are charged as percentages of the sale price.
Due to the long-term value of driving external traffic and listings from off-Amazon marketing sources, Amazon will continue to pay bonuses for purchases made by the same customer up to 14 days after clicking on the ad. Ultimately, every time a customer clicks on an ad off-Amazon, like through social media or Google ads, they’ll be directed straight to Amazon, where they will purchase the desired product. Therefore, this program pays sellers back 10% of their referral fee.
Who Can Participate?
The Brand Referral Bonus Program is limited to Brand owners selling in the U.S. who have registered with Amazon. If you sell in Amazon’s U.S. store but have not registered your brand yet, you will not be eligible to participate in this program. However, you can still get rewarded for driving traffic from off-Amazon marketing sources to Amazon listings through the Amazon Associates Program.
To enroll in the Brand Referral Bonus Program, you must register for the Brand Registry Program. After you’ve registered, you will have to enlist in the Amazon Attribution. After enrollment, you must create tags through Amazon Attribution to track your performance and bonus. All promoted products must have an Amazon Attribution tag to qualify for a bonus through this program.
Ultimately, working with external Amazon ads can be a strong strategy for products to increase their overall sales. If you want to expand your e-commerce business, it’s in your best interest to contact our seasoned team at Ebiz Accounting to discuss how Amazon’s unique programs can help your brand stand out from competitors.