What is the Amazon Brand Referral Bonus and How Does it Work?
Are you an Amazon seller looking to boost your brand visibility and profitability? Are you feeling stuck in the cycle of ever-increasing Amazon PPC costs?
Look no further than the Amazon Brand Referral Bonus Program, a game-changer for sellers who want to take control of their brand narrative.
In this blog, we will discuss what the Brand Referral Bonus is all about, how it works, its pros and cons, and how you can leverage it for your brand.
What Is The Brand Referral Bonus Program And How It Works?
Amazon’s Brand Referral Bonus Program is a strategic initiative designed by Amazon to encourage sellers to attract customers to their Amazon Product page and store from platforms outside the Amazon marketplace.
his program acknowledges the value of off-Amazon advertising, where sellers utilize platforms like social media, search engines, or email marketing to drive traffic towards their Amazon listings.
By enrolling in the Brand Referral Bonus Program, sellers who are also registered with Amazon Brand Registry become eligible to earn a bonus on qualifying sales. This bonus translates to an average of 10% credit on the sale of their branded products.
Here’s the catch: the customer needs to have landed on Amazon through a link or ad specifically placed by the seller on an external platform.
There’s an additional perk to this program. The bonus isn’t just limited to the initial product the customer clicks on. If the customer makes any purchases from the seller’s brand within 14 days of clicking the ad, the seller qualifies for the referral bonus on those purchases as well.
This extended window acknowledges the browsing and decision-making behavior of customers and rewards sellers for their off-Amazon marketing efforts.
It’s important to understand that the 10% bonus doesn’t directly translate to cash in the seller’s pocket. Instead, it acts as a credit that reduces the seller’s referral fees on future sales.
Referral fees are essentially the commission that Amazon charges sellers for each sale made through their platform. By participating in the Brand Referral Bonus Program, sellers can effectively lower their referral fees, increasing their profit margins.
What Is Amazon Attribution?
The Amazon Brand Referral Bonus Program relies heavily on a tool called Amazon Attribution. This free tool acts as the backbone for tracking sales generated through external traffic for products sold on Amazon.
This tool allows you to generate a unique URL for your product listing, which includes a special tracking code (also called the attribution tag).
When a customer clicks on your link containing the tagged URL, Amazon Attribution seamlessly tracks their journey. It recognizes that this customer arrived at your product listing on Amazon because of your off-Amazon marketing campaign. This tracking is crucial for the Brand Referral Bonus Program to determine if a sale qualifies for the bonus credit.
Brand Referral Bonus Program Eligibility Requirements
Here’s a breakdown of the eligibility requirements for the Amazon Brand Referral Bonus Program:
1. Brand Registry Enrollment:
The program is exclusive to sellers who have enrolled their brand in Amazon’s Brand Registry. This program verifies the authenticity of your brand and grants you access to various brand protection tools.
2. Professional Selling Plan:
You’ll need to be subscribed to Amazon’s Professional Selling Plan to participate. This plan caters to sellers with a higher sales volume and offers additional features compared to the Individual Selling Plan.
3. Amazon Attribution Usage:
To qualify for the bonus, you must utilize Amazon Attribution. It’s a free tool from Amazon that helps track sales generated from external traffic sources like social media ads, influencer marketing campaigns, or even email marketing.
4. Tagged Products:
Each product you want to track for the referral bonus program needs to have a unique Amazon Attribution tag attached to its URL. This tag helps Amazon identify that a customer arrived at your product listing specifically through your off-Amazon marketing efforts.
5. Branded Products Only:
It’s important to note that the Brand Referral Bonus Program only rewards sales of products belonging to your registered brand. Sales of other brands you might sell on Amazon won’t qualify for the bonus.
When Do You Earn A Referral Bonus?
The purchase qualifies for the bonus if it happens within 14 days of the customer clicking your off-Amazon ad or link. The bonus applies to any purchase from your brand within that 14-day window, not just the specific product the customer clicked on initially. This rewards your overall brand promotion efforts.
Why Sellers Should Join the Amazon Brand Referral Bonus Program?
There are several compelling reasons why sellers should consider joining the Amazon Brand Referral Bonus Program:
1. Boost in Organic Ranking
Amazon’s algorithm recognizes the value of products generating sales through external traffic sources. This means that sales driven by your off-Amazon marketing efforts can contribute to a boost in your product’s organic ranking within Amazon search results
2. Increased sales
While the program offers a bonus for sales within 14 days of a customer clicking your off-Amazon ad, the benefits can extend far beyond that timeframe. By attracting new customers through your external marketing efforts, you’re not just generating sales that qualify for the bonus, but also potentially building a loyal customer base. These customers might return to Amazon in the future and purchase again, even if they don’t click on your specific ad or link. This ultimately leads to increased overall sales for your brand.
3. Reduced Dependence on Amazon PPC:
The program offers an alternative to relying solely on Amazon’s Pay-Per-Click (PPC) advertising for product visibility. This can be especially attractive for new sellers who might struggle to compete in Amazon’s competitive PPC landscape.
4. Improved Return on Ad Spend
Off-Amazon advertising can be expensive, but the Brand Referral Bonus Program helps you get more value out of your marketing budget. By lowering your referral fees, you can see a greater return on your investment in external marketing campaigns.
5. Increased Profitability
The program offers a significant financial advantage. By earning an average 10% bonus on qualifying sales generated through your off-Amazon marketing efforts, you can effectively reduce your referral fees on future sales. This translates to higher profit margins for your branded products.
How to Sign Up For Amazon Brand Referral Bonus
Here’s a breakdown of how to sign up for the Amazon Brand Referral Bonus Program:
1. Log in to your Seller Central account and navigate to the “Brands” tab. Within the Brands section, you should find an option for the “Brand Referral Bonus.”
2. If you meet the eligibility requirements, enrolling in the program should be a straightforward process. Look for a button or link to “Enroll” or “Activate” the Brand Referral Bonus program.
3. After enrolling, you’ll likely need to complete a tax form to receive your bonuses. Amazon will provide clear instructions on how to complete this step.
4.
The next step is to create Amazon attribution tags. These tags will track the external traffic on your products.
5. To create a new tag, open the Amazon Attribution dashboard, and click on the Create Campaign option.
How to Track Brand Referral Bonus?
Amazon recently introduced a dedicated metric within the Attribution dashboard. This convenient feature allows you to see your Brand Referral Bonus earnings directly within the Advertising Console.
Navigate to the Attribution dashboard from your left-hand menu and locate the “Brand Referral Bonus” column within your chosen timeframe.
Additionally, you can also check the Transactions detail page in your Seller Central account. This page offers a more granular view of your transactions, though it’s not a dedicated tracking tool for the bonus program. You can see a breakdown of individual transactions, including those that might qualify for the referral bonus.
However, the bonus amount won’t be directly reflected here. You’ll see the standard referral fee, and you’ll need to consider the 10% bonus to estimate your potential benefit.
Do Brand Referral Bonuses Vary by Product Category?
Yes, Brand referral bonuses do vary by product category on Amazon. While the program advertises an average bonus of 10%, the actual percentage you receive depends on the category your product falls under.
Here’s a breakdown:
- Higher Bonuses: Categories like Amazon Device Accessories can offer bonuses as high as 30%. This incentivizes sellers to drive traffic towards these products, potentially due to their higher profit margins for Amazon.
- Lower Bonuses: Conversely, categories like Automotive & Powersports might have lower bonus percentages, ranging from 7% to 8%. This could be because these products are already more expensive and have different but almost similar features.
What Are Some Limitations of the Amazon Brand Referral Program?
The Amazon Brand Referral Bonus Program offers a compelling way for sellers to increase profitability and brand awareness, but it does come with some limitations to consider:
- Limited to Brand Registered Sellers: Only sellers enrolled in Amazon’s Brand Registry can participate, excluding resellers and those selling other brands.
- Delayed Reporting and Tracking: Reports on your estimated bonus earnings are typically refreshed weekly and have a two-month lag after a qualifying sale. This can make real-time tracking and campaign optimization challenging.
- Varying Bonus Rates by Category: The advertised 10% bonus is an average, and actual percentages can be lower depending on your product category.
- Limited Data on Customer Journey: The program doesn’t provide detailed insights into the customer journey beyond the initial click on your off-Amazon ad. It might be difficult to attribute long-term brand loyalty or repeat purchases directly to the program.
- Competition for External Attention: Driving traffic from external platforms can be competitive and require investment in marketing strategies.
Conclusion
The Amazon Brand Referral Bonus Program presents a strategic opportunity for sellers to unlock new levels of growth. By leveraging off-Amazon marketing and earning referral bonuses, you can attract new customers, boost brand awareness, and ultimately drive long-term success.
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