The process of starting an ecommerce store isn’t easy, and one largely untapped digital marketing avenue is affiliate marketing. Suppose you’re only dipping your toes in the affiliate marketing market or you’re looking to dive in and realize the potential of your e-commerce store. In that case, this guide will help you understand affiliate marketing and how it can boost your eCommerce store.
- 40% of marketing professionals believe affiliate marketers’ top digital expertise.
- A majority of brands employ the affiliate program to market their products.
Table of Content
- 1 What Is Affiliate Marketing?
- 2 Benefits of Affiliate Marketing for your eCommerce Store
- 3 How Do Affiliate Marketers Get Paid?
- 4 10 ways affiliate marketing can help boost the sales of your Ecommerce store
- 4.1 Partner with a Reliable Affiliate Marketing Tool
- 4.2 Build a Strong Commission Structure
- 4.3 Find Influencers who can promote your products.
- 4.4 Connect to your Affiliates regularly
- 4.5 Focus on High AOV Products
- 4.6 Seasonal Shopping
- 4.7 Create Text and Banner Ads
- 4.8 Social Media Promotion
- 4.9 Use Cashback & Loyalty Sites
- 4.10 Leverage Coupon Sites
- 5 Software to Manage an Ecommerce Affiliate Program
- 6 Conclusion
What Is Affiliate Marketing?
Affiliate marketing is a method where an affiliate earns a percentage of a business’s or a person’s product. The affiliate looks for a product they are interested in, and then they promote the product and receive an amount from every sale they make. Sales are monitored using affiliate links transferred from one site to another.
Benefits of Affiliate Marketing for your eCommerce Store
There are many advantages when you consider affiliate marketing for your online store.
The web has evolved into a highly collaborative space as the greater number of websites you cooperate with, the more you expand your potential reach and customers.
Here are a few advantages you’ll get in the beginning when you start using affiliate marketing.
1. Everything is trackable.
You can see data about clicks, impressions, sales, and leads all on simple affiliate dashboards
2. Strong Return on investment.
The main advantage associated with affiliate marketing is it’s entirely based on performance, and you can set the guidelines.
3. Affiliate marketing can scale.
Together with other marketing initiatives on the internet, In conjunction with your other digital marketing efforts, bringing affiliates into your program will enable you to increase traffic.
By joining forces with influential influencers who are trusted and trusted websites, You can boost your brand’s reputation and increase confidence among consumers.
5. You can focus on selling specific, high-value products.
When creating affiliate deals, Online store owners can make affiliates promote all their products or specific items. It is good to make affiliates promote high-value items with good profit margins. Additionally, if you’ve got the lowest turnover rates on specific products, you could make use of methods for managing inventory to market your surplus stock, boosting your sell-through.
How Do Affiliate Marketers Get Paid?
The customer doesn’t have to be required to buy the item for the affiliate to earn an income. However, the program that you choose to use will determine the affiliate’s contribution to the sale of the seller will be evaluated differently.
The affiliate could be compensated via a variety of methods:
1. Pay per sale.
This is the typical affiliate marketing model. The retailer gives the affiliate a portion of the price at which they sell the product once the customer buys the product due to the affiliate’s strategies for marketing. This means that the affiliate has to actually convince the buyer to purchase the product prior to being paid.
2. Pay per lead.
A more complicated program, pay-per-lead affiliate programs, pays the affiliate on the basis of the number of leads that convert. The affiliate has to convince consumers to go to the website of the merchant and take the desired action, whether that’s filling in the contact form, signing up for the trial of a particular product, subscribing to a newsletter, or downloading software files.
3. Pay per click.
The program is focused on enticing the affiliate to direct customers from their website to the merchant’s site. This means that the affiliate must be able to engage with the customer in such a way that they move from the affiliate’s website to the merchant’s website. The affiliate’s payment is by the amount of website traffic.
10 ways affiliate marketing can help boost the sales of your Ecommerce store
Partner with a Reliable Affiliate Marketing Tool
Get connected to affiliates within your area with one of the tools for affiliate marketing. Some of the most well-known affiliate marketing tools used in online commerce comprise Amazon, Avantlink, Clickbank, Impact Radius, Rakuten, and ShareASale. These companies serve as the intermediary between you and your affiliates, showing you the process of affiliate marketing and assisting you in launching or increasing your affiliate marketing.
Build a Strong Commission Structure
A solid payment will significantly increase the number of affiliate marketers looking to collaborate with you. A typical affiliate commission should be between 5 to 15 percent. A variety of factors can play a part in determining what an affiliate commission should be. These include:
- Price and margin for the product.
- The value for the partner affiliate.
Creating a high commission rate will help you bring in high-quality affiliates if you’re beginning your journey. Another method of marketing affiliates is to research the competition in your field and then launch your program with the highest percentage of commissions that you can afford to pay. It is also possible to create customized commission structures for various affiliates since you don’t have to be locked to a single public offer.
Because the affiliate commissions will be paid out after the sale, it is possible to include your costs of selling goods (COGS) as well as profit margin and affiliate commissions in order to get an excellent return on your investment.
Find Influencers who can promote your products.
Find affiliate blogs and websites with audiences that are compatible with your ideal customer, as well as invite them to join as an affiliate. Tools for recruiting partners allow you to connect with content creators and affiliates who align with your company’s image. Solutions such as Grovia can provide the ability to search for affiliates, as well as contact details and pipeline management for partner pipelines.
To reach out to influencers to connect with influencers, you can use the cold-email templates that send messages to them. Be sure to follow up and draw their attention by offering competitive commission rates, products for free, as well as other incentives to sign up with your organization.
Connect to your Affiliates regularly
Be in constant contact and keep in contact with affiliates. They need to be aware of upcoming launch dates, products you’re advertising on Facebook, social networks, banner advertisements, and videos featuring your product. Find out what they require from you in order to help them convert more easily. You can schedule a monthly schedule so that you communicate with them frequently.
It is also essential to offer them the most conversion-friendly landing pages, offers, and bonuses to encourage them to endorse your business. If an affiliate is driving an enormous amount of orders through e-commerce, be sure you provide them with higher commissions, exclusive deals, or even free items.
Be sure that you diversify the range of affiliates you also have. You do not want to be dependent on a few handfuls of affiliates; however, you should have a broad range of partners to ensure that your earnings are steady, even should one choose to leave your affiliate program.
Focus on High AOV Products
According to recent data, the most successful e-commerce companies boast the mean order amount in the range of $82. You can increase profits by letting your affiliates know which items have the most AOV and focusing on the products that bring in the highest AOV. The affiliates are able to promote the products and redirect customers to your website; however, to increase conversions and boost your AOV by offering promotions take these steps:
The free shipping limit (free shipping on all purchases that exceed $50) The research study on retail found that nine out of 10 customers say free shipping is the best incentive for customers to buy.
Minimum purchase discount: Customers like to feel as if they’re getting a bargain. Incentivize them with discounts on a scale. For instance, you can get 10% off your purchases that exceed $50 or 20% off purchases over $100.
Discount for first-time buyers to encourage your customers to purchase their first item by offering a 10-20 % discount coupon when they provide an email address.
There was more than 58 billion dollars worth of days of sales on the internet between November and December. Make a seasonal promotions calendar and distribute it to your affiliates. Create it on Cyber Monday.
Cyber Monday is the biggest day of online shopping ever in U.S. history, raking in $6.59 billion. The top retailers on Cyber Monday were
Focus your promotional calendar for the season on items that there is a sufficient supply of stock, “re-released” items (last season’s quantity you have to sell), or a launch of a new item. A lot of online retailers dedicate a week each month to promotions; make sure you be aware of sales, holiday times, and holidays of the year that you’re supposed to offer discounts.
Create Text and Banner Ads
If your calendar of promotions is set around holidays or your business cycles, making a text or banner campaign that aligns with the products your affiliates are encouraging drives decision-making by customers.
Retargeted users who see advertisements for banners are 70%% more likely to convert. Banner ads get a 33% percent the greater percentage of responses than billboards.
Create effective banner ads that help increase traffic from affiliate marketing by following these four suggestions:
Make sure your branding is clear. If visitors can’t discern whom you are advertising to, they won’t visit your website. Simple is best. A concise message will be remembered by consumers.
Utilize animation. It’s hard not to notice movement on the screen, so if it’s beneficial for your company, include animation in banner advertisements.
Include an action call. Your online users will follow your example. Provide them with a step to follow.
Social Media Promotion
Utilize Twitter, Facebook, and Instagram to advertise the products that affiliates promote. Make sure to surround your affiliate marketing campaign with captivating images, product reviews, as well as launch-related videos. Make sure you share content created by your affiliates that advertises your products.
Use Cashback & Loyalty Sites
The loyalty and cashback sites are well-liked by online shoppers due to coupons and cashback rewards. These loyalty sites give customers a share of the commission you pay to them for sales, and they can build a loyal base of customers. They also drive a large number of visitors and could generate significant sales for your website’s product pages.
Leverage Coupon Sites
Coupon affiliate marketing lets you collaborate with multiple websites instead of a single scenario. The promotional code or affiliate link – traditionally employed to record conversions so that affiliates earn credit for conversions — to an affiliate network, which then gives it to the largest coupon sites.
Software to Manage an Ecommerce Affiliate Program
4. Impact Radius.
Choose a reliable affiliate network, design an attractive commission structure, and advertise promotional products for affiliates. Use the tips above to increase the number of sales you make on your online store by 2022.
It’ll take some effort to build momentum with affiliate marketing; however, it’ll be worthwhile when you see results.
To keep yourself updated with the latest eCommerce and Amazon news, subscribe to our newsletter at www.cruxfinder.com