Amazon Affiliate: How to make money without your own goods

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You want to start a business with as little effort as possible and thus secure a good side income? A very good thought, but most of the time it remains only with this thought. But what if we were to tell you that this consideration is very feasible? That it is possible to generate passive income with little effort? Curious now? 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 earn your money simply through advertisements. Another form of Amazon Affiliate Business is that you use the existing Amazon warehouse logistics and save your own warehousing. We want to explain to you in this article exactly how the business models work.

Definition: Amazon Affiliate

To begin with: What exactly is Amazon Affiliate? The Amazon Affiliate program is a free affiliate program of the mail order company Amazon.de. 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 owners can give their website visitors recommendations about products, link them directly and earn money with this advertising. This way 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 very well if you run a well-visited website or a highly frequented blog. Then you can easily generate a good side income with the help of Amazon Affiliate Business. To do this, you only need to follow the steps below:

  • Registering with the Amazon affiliate program (via Amazon.com),
  • Installation of advertising material (mostly banners) on your website,
  • Building up a lucrative income through commission payments from Amazon.

Basically, it works quite simply: after you have placed advertising on your pages, all you have to do is wait until someone visits your website, discovers the advertising, clicks on it, is directed to the advertised product and orders it from Amazon. And based on your personal tracking ID, Amazon recognizes that the buyer came to the website through you. So you get paid a fixed commission by Amazon, which can be between one and ten percent of the purchase price. This is how it works!

The big advantage of this method is that you don’t need your own products and therefore you don’t need to set up a warehouse. You only need to look for suitable products on Amazon for your website or blog. You then promote them using the advertising materials provided. But be careful. Make sure that the two topics fit together. For example, if you run a blog about model trains, ads for vacuum cleaners are of course counterproductive. Here, advertising materials for Märklin trains or model building accessories are much more suitable.

THE ADVANTAGES OF THE AMAZON AFFILIATE BUSINESS

  • large variety of products
  • high customer loyalty due to good customer service
  • integration of links possible without technical know-how
  • good WordPress compatibility allows to place descriptive preview boxes
  • no effort at all
  • reliable payment of commission

THE DISADVANTAGES OF THE AMAZON AFFILIATE BUSINESS

  • not every product can be successfully used for affiliate product
  • depending on the product category the commissions can be very low
  • the cookies of the links are limited to 24 hours
  • without reach high income is not possible
  • AdBlockers often prevent sales

Fulfillment By Amazon (FBA): How to generate a lucrative side income without a warehouse.

Another method is the FBA method, which is also becoming increasingly popular among entrepreneurs. Fullfillment By Amazon means that you sell your own products, but not in your own store or online store, but through Amazon. You have two options:

You ship the goods yourself from your own warehouse.

You pass your goods on to the Amazon warehouse, which takes over the shipping for you.

If you want to save money and work, just use FBA. Translated, this means: “Order processing by Amazon”. Once you have registered as a merchant with Amazon, you can select this special service by clicking on “Shipping through Amazon” and send your goods to the various Amazon logistics centers. 

There they are stored and after an order is placed, they are sent from there to the customer. But wait: Amazon does much more for you. Because the company provides you with its shipping service and also takes care of returns. So once the products you sell have been sent to Amazon, you no longer have any contact with them, because the online giant is in charge of all the processes. Ingenious, isn’t it?

THE ADVANTAGES OF AMAZON FBA

  • no costs for your own warehouse (no rent or electricity bills);
  • no time spent on self-executed shipments (packing, labeling, franking, taking to the post office);
  • no hassle due to necessary returns (Amazon employees take over necessary steps);
  • good visibility of products on Amazon (better ranking by participating in FBA);
  • No shipping costs for buyers (when participating in FBA, automatic service of Amazon Prime);
  • Amazon takes care of customer support in the local language.
  • Affiliate marketing taxes can usually be set to zero for sales tax, since Amazon Affiliate is a partner based in a European country.

THE DISADVANTAGES OF AMAZON FBA

However, there are not only advantages to using Fullfillment By Amazon. There are also risks associated with such a service, and we want to share those with you as well. If you have decided to participate in this affiliate program of Amazon, this means, among other things, that you:

  • no longer have any influence on the order process (all processing is done by Amazon);
  • you have to control your merchandise management (non-deliverable products lead to disadvantages like worse ranking on Amazon);
  • you can’t put your own logo on packages shipped for you and thus promote your business – 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 each product);
  • face an increased risk when selling abroad.

Requirements to be able to earn money

With the classic Amazon Affiliate Business it is necessary that you provide sufficient traffic on your existing internet presences. The more users visit your pages, the greater the chance that the advertising will be clicked and subsequently something will be purchased. An important rule here is that about one percent of all visitors order goods!

Therefore we want to clarify the whole thing for you again. The following – of course purely theoretical – calculation shows possible revenue scenarios: If you have 1,000 visitors per day, then on average about ten people will buy a product advertised by you at a price of ten euros. With a commission of four percent, that would be income of four euros a day and 1,460 euros a year. But if you have 20,000 visitors a day, you’ll earn an impressive 292,000 euros a year. Yes, that is possible.

For this reason, not only taking care of good traffic is a big responsibility, but also finding suitable products. Therefore, it is really very important that you promote products on your site that you think your visitors will also like and search for. This is really the key secret.

By participating in the Fullfillment By Amazon service, you can then earn a high side income in a relatively easy way. In order to do this, however, you would have to agree to Amazon taking some important activities out of your hands. Your income increases due to the omitted costs for your own warehousing. 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 charges you for them, the costs can quickly exceed the benefits. In addition, Amazon charges penalties for stored products that have not been sold over a long period of time. So please be aware of these risks!

How to sign up for the Amazon Affiliate Program

  • If you want to sign up for the Amazon Partner Program, there are five steps:
  • Go to the Amazon PartnerNet page and click on the “Sign up now” button.
  • Next, you will be redirected to the login page where you sign in with your Amazon account. If you don’t have an account yet, now is the time to create one.
  • After that, enter the URL of your website where you want to promote Amazon products.
  • In your personal Amazon profile you can now make further settings. For example, you can 
  • define the categories that you want to promote or how visitors come to your website.
  • In the last step you have to confirm your data. Now it takes three to five days until Amazon has processed your registration. After that, you can get started right away.

3 Tips to Increase Your Amazon Affiliate Revenue

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. For this we want to give you some tips in the following.

1. CHOOSE THE RIGHT PRODUCT CATEGORY

Of course, you can promote products that generate the highest commissions. However, this is not always the best approach. It should be more about choosing the products that fit well with your brand. After all, users usually come to your site with a specific intention. Now, if you promote a product that doesn’t fit the theme 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 enthusiastic about and communicate that to your readers. Authenticity is an important requirement to become successful with your Amazon affiliate business.

2. HIGHER SALES THROUGH SEO

The SEO optimization of your site is also of enormous advantage for your Amazon Affiliate Business. After all, the basic prerequisite for customers to buy products through your links is that they find your site. But not only that: When users land on your site, they usually had a specific search intention. They wanted to find out about something and hope to find it on your site. So it’s important that you take advantage of that search intent and offer them the products they were looking for.

3. CONTINUOUS OPTIMIZATION THROUGH THE ADVERTISING REPORT

In PartnerNet, Amazon provides a comprehensive report on all sales and generated advertising refunds. You should use it too. It tells you which products work well on your site and which integration is the most suitable. This way you can always adjust 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 to be successful. Because a business and a lucrative side income does not build up by itself. Patience is also important, because hardly anyone has become a millionaire or successful businessman overnight.

For the reasons mentioned above and because of the risks, this FBA affiliate program is suitable for you especially if you already run an online business and want to increase your sales figures, or if you are seriously thinking about opening an online store. Then Fullfillment By Amazon can be a good addition to earn an even higher side 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 to provide interesting content on your pages to offer your followers something and thus maintain the traffic.

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