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  1. #1
    ABW Ambassador mailman's Avatar
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    January 18th, 2005
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    Question Amazon - As a Merchant?
    I am in the process of adding some Amazon links and was wondering how they fair for those of you who support their program as a Merchant? Any info will be great!

  2. #2
    Merchant & ABW Ambassador
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    May 31st, 2006
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    It is like a love hate relationship.

    1) They are the largest market place that is not a discounted platform like eBay.
    eBayers are often looking for a good deal and want things for next to nothing. Amazon is more or less a different model where the mentality is, you are not getting it for free and it is a Fixed price

    2) If you nail down the automation with your order system, it can be a breeze.

    3) They have a big customer base and it is based on a fixed commission. So it is like Amazon is your largest affiliate.

    4) They handle your customer service too.

    Cons:
    a) High commission payout. I think we were looking at like 25% or something.

    b) They favor customers so if there is an issue, they will credit the customer's account and handle it with you. It is good but sometimes, you have a problem customer that is out for blood, that is bad for you.

    c) You are not suppose to contact their customers in any way. They will slap you on the hand if you do. Actually, I take back my comments about Amazon being your largest affiliate as you do not own the customers.

    I would use them as your secondary sales channel.

  3. #3
    ABW Ambassador CCBerries's Avatar
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    they also charge their commission on shipping so if all of your product needs to ship overnight (or the customer selects overnight shipping like my stuff has to) you end up with a percentage that is much higher than 20%-25% (the actual percentage will depend on what categories you are selling in).

    Read the contract.. you'll see that they have the right to use your name, pictures and descriptions forever, if you ever end your relationship with them the information can be used to reroute customers to competitors.

    They insist on the lowest possible price, so if you run a coupon for your regular site you'll need to reduce the Amazon price by that amount.

    In my case they were running adsense ads for counterfeit chocolate products right under my listings which is as classless as you can get in my field.

  4. #4
    Affiliate Manager
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    March 30th, 2009
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    Spokane, WA
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    Hi Mailman,

    Just to clarify, are you adding links as an affiliate or a merchants selling your items through Amz?

  5. #5
    ABW Ambassador mailman's Avatar
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    January 18th, 2005
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    I am adding links as an affiliate Matt.P

  6. #6
    Member
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    February 5th, 2009
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    Mailman: To answer your question about using the Amazon affiliate program (which they call "associate" program), it is probably the 2nd best of any I have used. The best has been a small merchant which runs their own in-house program in addition to being on some network (CJ, which I consider useless).

    Amazon commissions are tiered, dependent on monthly sales volume. If you sell at least 7 items (talking the US program here; the separate Amazons are separate programs, one of the negatives), you will earn 6%. It's not too hard to get into the 7 or 7.5% tier (111 needed for 7.5%). However, Electronics only earns 4% and PCs a max of $25. Not a big deal.

    However, they are constantly changing their Ts&Cs, aren't very transparent about it, and have steadily reduced opportunity. They appear to have stopped paying commissions on links from emails, and they do say you shouldn't use their links in emails, but the manner of this documentation leaves a lot to be desired. They have also stopped paying commissions on links from SOME sites that are not your own; it isn't 100% clear which ones. It appears that even referrals from your own aStore (a poor implementation of a store) pay no commissions under some circumstances (this is my own deduction and not a documented fact).

    My commissions from them have halved, starting in April. I assume that it's because of the restrictions on where your links are, but I am not sure. I continue in the program because it is by far the best converting of all music related merchants (with the exception of that one merchant I mentioned, with their in-house program). Amazon is popular and trusted. Their cookie is 24 hours, their tracking is usually good. But when something goes wrong, don't expect transparency.
    ---
    Valerie Magee
    [URL=http://mageenet.net]MageeNET[/URL]

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