Affiliate Selling On Amazon- The Set-Up Overview

We have already glanced at a few people who have done their affiliate selling on Amazon here.

But sometimes you just want to know how the pros started right?

So here we are going to go through what the pros did/ do and how it built up for them.

Affiliate marketing continues to be one of the most effective ways to generate passive income online, and Amazon's Affiliate Program, also known as Amazon Associates, remains a top choice for marketers in 2024.

As well as tons of positives (mainly the Amazon system) there are some problems.

competition- good revenues comes more people to tap into them
why buy from you and not just through Amazon?
thin margins on some of the products
Amazon rules
not all affiliates earn millions

However, with thousands of products available, identifying the most profitable affiliate products is the issue.

For pros aiming to maximize their affiliate income, the key lies in:

selecting the right products that cater to a targeted audience while
balancing demand and commission potential

Understanding the Amazon Affiliate Program

It’s important to understand Amazon's affiliate program. It is also very wise to go through Amazons terms and conditions. A very dry read but essential to understand some of the rules that you need to adhere to. MrBeast is very aware of Youtube, their policies, terms and their ranking factors. Where everyone else is trying their best to blast out a video to get rank, MrBeast ranked because he knew what Youtube was looking for.

With Amazon, affiliates earn a commission for every product purchased via their unique referral links. So you have a code directly related to you. When you see a product that you would like to promote, you get Amazon to create a link (embedded with your code). You then find ways (that don't go against Amazons terms) to drive people to buy through your link. If someone buys within a certain time (usually 24 hours- which is nothing) then you get a commission of what they buy

Amazon dictates the commission structure (that can also change) and it varies by product category, ranging from 1% to 10%.

And because the vast majority of products are open for affiliates to promote, you can find anything that you could be good at selling. The potential to earn through this program is immense, but selecting the wrong products can result in minimal commissions and low conversion rates.

1. Start with Niche Research

Niche is very fluffy these days. Go Niche! You hear people say. But the issue with niche is how niche do you go? We did quite a long article on niche and affiliate marketing, check it out here.

In our experience,

you niche down as far as you have enough people to buy
have enough wiggle room to go wide and deep within that niche so you are not trapped with one product

You have also got to pick a niche that you enjoy or at least have an interest in. Far the biggest defeater of selling is not liking the products you sell or not having a clue about them. Some of the top sellers of fishing equipment have sellers who like fishing.

Niche then means trying your best to create an authority, or at least getting people to trust you. This works especially so if you are creating a content site or video series/ channel.

If you are driving people to your product offering through paid placement then content is not really an issue. Paying for position can get costly so you will need a cool head and some disposable income.

Tools for Niche Identification

One of the simplest ways to find if people are looking for your niche is Google Trends. It is a valuable tool for tracking the popularity of different search terms over time. It can help professionals identify growing trends and niche markets that are likely to see high demand in the near future.
Log into niche forums
Find blogs and influencers in the niche and see what they are saying about new products that are going to come (once it is trending there are competitors already in place)
Amazon Best Sellers and Movers and Shakers lists provide real-time insights into which products are trending. These lists can reveal seasonal shifts, new product launches, and consumer interest across various categories.
Competitor Analysis: Studying what successful affiliates in your chosen niche are promoting can provide useful insights. Tools like Ahrefs or SEMrush allow professionals to see what products competitors are driving traffic towards and ranking for. Here is a list of some of the software that affiliates use in the Amazon FBA business

Example: Pet Supplies in 2023

Pet supplies have shown consistent growth in recent years, driven by the increasing pet ownership rates in many countries. Niche products such as luxury pet beds, organic pet food, and pet health supplements have been particularly lucrative for affiliates. We are also finding household name designers going into the pet landscape. There are the side niches as well: seasonal costumes, elaborate small animal homes and portraits are the first ones to spring to mind.

But remember one huge thing that we will all fall prey to.

People buy solutions and not products.

Finding a product and then finding an audience is a terrible idea. It hugely never works. You will spend ages finding keywords and trying your best to promote something with little very buying magnets.

Buying magnet is something that Jasonera just made up. It is something that draws people to your product. If you are trying to sell a Gaming computer then you don't go to gaming people to find out if they want to buy it. They will buy if:

a new game that everyone raves about will only use super powerful computer peripherals
their Youtube stars use that machine
friends and peers use a better machine
you can be better/ quicker/ more advantage on a game using that computer

There, 4 buying magnets :)

2. Analyze Product Demand and Competition

Once you've identified your niche, the next step is to find products that strike a balance between high demand and low competition. Opting for overly saturated products (e.g., phone accessories) can limit your earning potential, as competition will be fierce. On the other hand, promoting obscure products with little demand might not yield significant income.

Sure you can jump into a fierce competitive environment. But, most of the low hanging fruit will have been taken. So now what do you do? Crank up the backlinks? Increase the amount of articles that you throw out? These take time to do and they also take time to "recognize" within search/ SEO. Maybe evergreen products would help here but how about:

having a consumer base already present- newsletters/ subscribers
buying keywords
buying advertisements
promoting with someone else
interviews on influencer channels

A lot of these are instant and also you are using someone else to help. Those people or advertisement methods would also have a specific audience that would be suitable for you.

Tools for Product Research.

When you are first starting out it is favourable to do it DIY. Go through data by looking. When you have figured out what is going on, how the Amazon landscape lays then you must sell something. Because it is very easy to get wrapped up with tools and gadgets but if you don't know how to sell something, what people are wanting then gadgets make things worse.You won't know what they mean, how your own data intelligence can be improved...and if the results coming back are actually what you want.

Make sure you have some income first and then figure out if additional tools are worth the expense- can they increase your profit, not just be super cool.

Helium 10: Is a suite of tools designed for Amazon sellers to help them optimize and manage their businesses on the Amazon platform. It offers a variety of features and services to assist sellers in tasks such as product research, keyword research, listing optimization, and competitor analysis.

JungleScout: It is a big data/ intelligence tool. As they say: "As a trusted data partner, we help sellers, brand owners, and enterprises uncover market dynamics, build stronger data models, and capitalize on opportunities. Our cutting-edge Competitive Intelligence tool is the only solution for Amazon businesses to benchmark their brand, understand how competitors are taking market share, and fuel the strategy to win it back"

MerchantWords: As they say "helps you develop a strategy to outrank your competition and win the digital shelf on Amazon. Understand where your product ranks among other products, find the top-ranking keywords you share, and target the keywords your competitors are ranking for that you are missing".

3. Selecting the Right Product Categories

Amazon’s commission structure is divided by product categories, and professionals should be mindful of the categories that offer higher commission rates. For instance, categories like luxury beauty and furniture offer commissions as high as 10%, while electronics and health supplements typically offer lower rates (around 3%). However, high-ticket items in these lower-commission categories can still be profitable due to their higher price points.

Example: Home Electronics vs. Health Supplements

In 2024, promoting high-ticket items like home electronics can yield significant returns despite the lower commission percentage. For example, earning 3% on a $2,000 television equates to $60 per sale. Meanwhile, promoting lower-ticket items like health supplements might offer a higher commission percentage but smaller earnings per transaction.

You also have to figure out:

Conversions. If I am spending $100 on ads and only getting $60 in return, you are going to be out of business
Can you long tail sales? You might sell 1 product giving $60 a week. But you could sell 70 $1 commission product per 3 days
Can you back end sell/ cross sell? So one customer might buy a product and give you $1 commission but will also want other products that compliment the first?
Can you repeat sell? Similar to back end, but this one relies on the customer buying a product later on down the line. So they bought one product one week, but might buy another from you in a few weeks. Same customer but now the value of that customer has increased
Can you weather the storm? People are more than likely to buy smaller objects all the time rather than large objects often. If there is a down turn in finances big purchases are likely to be hit. But smaller objects that people still "need" usually still get bought. You also might think laterally? How about repair/ cleaning/ maintenance for higher prices items?
Can you automate? Automation (once a system is already in place) is a wise move. Multiple articles, multiple ads etc is very time consuming (yes you will have to do multiple versions to capitalize on increasing growth). But is automotive software or personnel going to increase costs? Yes they will, so that will need to be figured into your calculations

Remember, if you are affiliate selling on Amazon: the Amazon cookie is 24 hours.

4. Evaluate Affiliate Selling On Amazon Friendly Features

Now we need to figure out what products are good at selling?

High Customer Ratings: "Products with an average rating of 4 stars or higher are more likely to convert, as positive reviews build trust with potential buyers". That is what is usually said. And you can check out Reviews, Stars and Sales here to see how reviews plays a very important part for sales on and offline. But what people don't know is that you need an average 4 stars and above. People are very skeptical when they see just 4 stars. But if they see 3 or 2- but with an owners response, they will still buy the product.
Is the product solving something or how is it better than what the person is using now?
Making sure that the product is shown in a good light. The sales page offers everything they need to know. Videos and pictures increase sales. There are also quotes and testimonials to further boost trust
Your usual- varied payment methods, contact details and returns policies help- even if it is bought through Amazon
Is the person going into the sales page with a sales mood? Are they willing to buy in the first place? Can you pre-sell them enough to click on the link to buy? Is the advert aimed at someone willing to buy? A sales page can be awesome, but if the person is not willing to buy and they have been sent there to browse/ check information, then that click is wasted
Multiple Product Options: Products with various models, colors, or sizes can appeal to a broader audience, increasing the chance of a sale.
Cross-Selling Potential: Promoting products that naturally lead to additional purchases (e.g., the often exampled: promoting a DSLR camera along with lenses, tripods, and memory cards) can increase your affiliate earnings. You will find cross selling in the "frequently bought together" area. Can you promote them separately?
People also forget the perfect price range. There really isn't one so you offer prices that the person can afford. In most cases the higher price is bought. So you need to find products which have multiple prices with multiple better offers at each sales price. Making sure the person knows the difference and is shown the difference is a good idea.

Example #1. Games consoles get offered with (i) just the console. (ii) the console and a cool game, (iii) the console, game (usually branded with the console) peripherals and some other goodie. 3 price ranges, 3 different audience types, 3 more chance to buy literally the same product.

Example #2. The "Frequently Bought Together" Section

Amazon’s “Frequently Bought Together” section is a goldmine for affiliate selling on Amazon. By promoting a core product alongside its recommended accessories, you can increase your chances of earning commissions on multiple items in a single transaction. For example, promoting a popular kitchen appliance alongside compatible attachments or recipe books can enhance your overall earnings.

#SocialSelling however lacks trust (at the present time). Most US customers aren't OK with social shops. But, 94% of social users will buy on Amazon if shown that product being used by #influencers .
— Dominic (@MyJasonera) October 21, 2024

5. Leverage Seasonal Trends and Holiday Sales

Seasonal trends and holiday sales present a significant opportunity for affiliates to increase their earnings. Products that may not see high demand throughout the year can experience spikes during specific seasons or holidays.

Key Events to Watch

Back to School (August-September): Products like school supplies, electronics (laptops, tablets), and clothing see an increase in demand during this period.
Holiday Season (November-December): The holiday shopping season, particularly around Black Friday and Cyber Monday, is a peak time for consumer spending. Promoting trending gift items, electronics, and toys can result in substantial affiliate commissions.
Prime Day: Amazon’s annual Prime Day event offers massive discounts across various categories, making it a prime opportunity for affiliates to promote high-ticket items at a discount.

Example: Promoting Toys and Games During the Holiday Season

In 2023, popular toy brands saw a significant increase in sales during the holiday season, with many items selling out quickly. Affiliates who had already established a presence in the toys and games niche capitalized on this trend by promoting must-have toys and securing high conversion rates during the gifting season.

Many pro affiliate selling on Amazon will have a calendar and write in all the separate celebrations then work back a week. In this instance you will promote each celebration 1 week before hand. What sales people have found is that if you promote something people are skeptical. If you attach a reason for promoting something or offering a sale then people are much less skeptical. Some companies have tried to figure out when their low sales weeks/ months were. Then they tried to devise a sales plan around this. Prime Day is there mainly because summer is a slow time for sales.

#Sellingonline? 3 best online sales days. End of year/ season. #BlackFriday and your own #salesday. Prepare before hand. Make those days special. Adding a meaning to why you are selling always increases sales.
— Dominic (@MyJasonera) October 20, 2024

6. Diversify Your Product Selection

A lot of people are skeptical to increase the amount of products that they promote with a large percentage of affiliate offering 1-5 products only. 1-5 products is OK if there are large conversions

But, what has Walmart taught us?

If you are selling items on a very thin margin then you need enough products to make the process worth it

What I think the issue is, is that people who are selling don't really know the products so they can't go wide or deep in that product category. So if they are selling fishing lures they don't usually go out of that specific niche. But how about the following:

fishing videos, books and channel subscriptions
stools and outdoor equipment
poor and sunny weather protection
fishing lines
food packaging (remember some people who fish will be there for hours, they need to eat and drink outside)
games and activities for people who are coming a long who are not into fishing

Now you have increased the chances of someone buying more than one product. You just have to ask yourself, what else would this person do, what naturally goes with that product?

Diversification is the best way to increase profits with affiliate selling on Amazon.

Check out more affiliate articles here. Amazon selling articles can be found here. Our blog? Can be found here.