Amazon Brand Referral Bonus & What to Know
External traffic has become increasingly crucial for promoting online businesses. Giving consumers a higher chance of stumbling across your Amazon store increases the likelihood of making product sales. However, not everyone can afford long-term advertisements on websites such as Facebook or Google ads. Luckily, Amazon Affiliate marketing has created a system to help their FBA businesses get a headstart to grow their empire and maybe one say, sell your Amazon FBA.
Amazon's Brand Referral Bonus launched in the summer of 2021, offering rebates for increased visibility and traffic flow. But how does it work? This article will define the Brand Referral Bonus and guide you through the proceedings needed to reap the business benefits.
What is the Brand Referral Bonus?
With the Amazon Brand Referral Program, Amazon rewards FBA sellers who drive traffic to their brand through non-Amazon marketing efforts, such as search ads, your website, or email marketing. It accomplishes this by granting a 10% (on average) bonus to sales that are driven from those non-Amazon marketing efforts. Instead of a cash-based bonus, Amazon marketplace removes 10% off the top of your referral fee. So rather than owing Amazon 15% of your sale, you’ll only pay 5%. That’s a substantial difference.
By obtaining this bonus, you can enjoy the following:
- Accelerated growth – Wondering how to boost your sales on Amazon? By taking the initiative to drive your online traffic, you’ll likely notice the expansion of your product sales. By casting a large net, off-site traffic brings an expansive range of consumers and may encourage an existing customer to make a repeat purchase .
- Proactive advertising– Because this bonus encourages off-site activity, you can get creative with how and where you strategically place your advertisements. Finding websites that speak to your target demographic can yield highly favorable results.
- Sound investment – Whatever business you’re in, it’s in your best interest to save money whenever possible. Using this brand referral bonus program to your advantage can enhance your advertisement strategy and save you considerable money.
If you’re wondering why Amazon would establish a bonus like this, it’s pretty simple. This practice benefits Amazon brands just as much as it helps your business. Off-site traffic that leads to Amazon will often result in repeated visits. So the more consumers they can bring to your storefronts, the more users they’ll get visiting other storefronts in the future.
What are the Eligibility Requirements?
Unfortunately, not everyone can apply for this bonus; you’ll have to meet a couple of requirements first. But after doing so, you can start your application.
#1 Join the Amazon Brand Registry
Your brand must be officially registered to qualify for the Brand Referral Bonus. Registered brands can access essential Amazon advertising and business tools that help improve day-to-day operations.
If you want to become part of the Amazon Brand Registry, you’ll need to:
- Register your IP in each country you wish to enroll in.
- Have your trademark registration number.
- Ensure all products have your trademark on the product/packaging.
- Compile a list of all product categories your products fall under.
- Enroll in the registry (completed by the trademark owner).
#2 Must Use Amazon Attribution
Once your application has been approved, you can move on to the second requirement needed for the bonus. Amazon Attribution measurement provides you with an in-depth analysis of off-traffic data. Navigating Amazon Attribution is crucial if you want to drive additional traffic to your listings through marketing efforts outside of Amazon ads. That’s why Amazon necessitates its use as a requirement.
Once you have Amazon Attribution, you can:
- Create tracking links
- Lead consumers to the Amazon Attribution Tag
- Collect your 10% bonus
Knowing how to navigate Amazon Attribution can help you understand the inner working of your business more intimately. Plus, with a boost from Amazon’s bonus, your revenue stream may increase with each passing month. Track progress and celebrate success.
Is it Worth It?
Now it’s time for the question; is it worth it? Of course, everything comes down to your business model and spending restrictions. While it may feel like a giant leap to take, it absolutely can feel worth it when you consider everything it can help you with:
- Cost of advertisements – The Brand Referral Bonus helps offset the cost of advertisements by decreasing your Amazon FBA fees.
- Ranking score – Amazon likes to reward businesses that attract a large audience. Achieve the bonus and improve your chances of appearing at the top of searches and landing pages, as well as potentially receiving the Amazon best seller badge.
- Visibility – More eyes means more business. Any chance to invite consumers to your page presents an opportunity for lasting connections and possible sales.
In short, yes, it’s worth it. But that’s not to say you can’t do it yourself too. While Amazon advertising offers a rebate in exchange for visibility, you can always create your own non-Amazon marketing strategy. This way, you can avoid additional costs and have more control over your customers and brand voice.
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When it comes to boosting your brand, you have to remember what’s best for your business.
At Forum Brands, we know how hard it can be to feel confident in your business decisions. When your business is at a crossroads, we offer a solution. We buy FBA businesses looking for an exit strategy. Whether you’ve outgrown your business or your business has outgrown you, Forum Brands can take it off your hands and lead it forward.
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Amazon. Increase profitability with Brand Referral Bonus.https://sell.amazon.com/blog/brand-referral-bonus
Amazon. Review Eligibility Requirements. https://brandservices.amazon.com/eligibility