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.
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:
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.
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 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
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:
There, 4 buying magnets :)
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:
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".
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:
Remember, if you are affiliate selling on Amazon: the Amazon cookie is 24 hours.
Now we need to figure out what products are good at selling?
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
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
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
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:
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.
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