Your Ultimate Guide to an Amazon Referral Bonus – [Explained]

Amazon’s dynamic marketplace is not only a choice destination for billions of shoppers every month, it’s also an attractive storefront for sellers. It’s only natural that they would develop various programs to support and incentivize sellers.

The Amazon referral program is one of those programs, and if you don’t know about, you will want to jump in on this one!

Imagine being able to monetize your off-Amazon marketing efforts and get paid when customers make purchases using those links. That’s what the Amazon brand referral bonus does!

It rewards sellers for directing external traffic to their Amazon listings.

So, there’s got to be a catch, right?

Well, not really, but there are some key factors to be eligible for the brand referral bonus that sellers need to know and adhere to, so that’s what you’ll find in this article.

By understanding and leveraging this program, sellers can effectively drive external traffic to their listings, benefit from reduced referral fees, and ultimately, increase their profitability.

What Is A Referral Fee on Amazon?

Amazon charges sellers a commission for each item they sell. This is how Amazon earns revenue from third-party sellers on its platform. This referral fee compensates Amazon for providing sellers access to their vast customer base and Amazon Seller Central services.

The fee amount varies based on the category of the product, but ranges from 8% to 15% of the sale price for most items. Some categories may have higher fees and there is also a minimum referral fee for each item sold that is typically around 30 cents.

For each item you sell, you will either pay a referral fee percentage based on the category or the minimum referral fee, whichever is greater. You can find a detailed breakdown of referral percentages and minimum fees here.

Referral fees will be automatically deducted from your earnings before you are paid by Amazon.

How Much Is The Amazon Referral Bonus?

Much like the referral fees discussed above, earnings from the Brand Referral Bonus program vary by product category and a set percentage outlined by Amazon.

You can find a breakdown of these percentages in the Amazon Seller Central Help Articles (You must be logged into Seller Central to view the link). The average amount ranges from 5% to 30% based on the category and quantity sold.

Benefits of Amazon Brand Referral Bonus Program for Sellers

The Amazon app referral program is designed to support sellers who are taking advantage of external marketing strategies to drive more sales on Amazon.

You’ve already done the work of getting your products on one of the most lucrative and influential marketplaces in the world. Now it’s time to let everyone know about your brand, products, and the place where they can find them.

There are many benefits to the Amazon referral program. Here are some of the main advantages:

Reduced Referral Fees

This is the big one. There are a lot of fees involved with selling on Amazon because Amazon takes a percentage of every sale for use of their selling platform and endless customer base.

The Amazon brand referral bonus offsets a portion of those fees, lowering the cost to sell your product on Amazon.

Increased External Traffic

If you are taking advantage of external marketing strategies like social media, email, or SEO, the Amazon referral bonus incentivizes and monetizes your efforts.

Amazon pulls in billions of customers every month, but promoting your listing outside of the Amazon platform allows you to leverage your own warm customer base with a better potential for the shopping experience to end in a sale.

Better Product Visibility

When products receive increased external traffic, they will also likely see improved visibility on Amazon. The higher traffic and sales velocity can lead to better rankings in Amazon’s search results.

This will allow customers to find and purchase your products more easily.

Optimized Advertising Spend

If you are investing in advertising outside of Amazon, the brand referral bonus can help you see a better ROI for those efforts.

The program offers a way to offset some of these costs by awarding a bonus for traffic and sales outside of Amazon.

Promotes Brand Building

Selling is about your brand. People buy from the brands they identify with. They adopt brands that represent them in all sorts of ways like style, prestige, business, and more.

The Amazon referral program is targeted toward sellers who are building brands. By leveraging your own website and brand-centric marketing strategies, you enhance brand recognition and customer loyalty. Amazon will reward you by offsetting your advertising costs with the referral bonus.

Detailed Data Insights

Amazon provides sellers who participate in the amazon brand referral bonus program with insights into their external marketing strategies.

This allows you to understand which channels and methods drive the most sales on Amazon. You can then refine your marketing approach and invest more wisely in your promotions.

Competitive Advantage

Sellers who use the tools like the brand referral bonus program gain a competitive edge over those who are relying on Amazon’s internal traffic alone.

By leveraging external traffic, you can achieve higher sales volumes and the potential for better profit margins.

Brand Referral Bonus Program Eligibility and Requirements

Amazon’s brand referral bonus program has specific requirements for eligibility you must meet before participating. The program goes hand-in-hand with Amazon Attribution, so if that’s something you’re already doing, then the Amazon referral program shouldn’t be an obstacle.

You’ll want to check Seller Central for all of the requirements, but here are the key things you can expect to be eligible:

Amazon Brand Registry Enrollment

If you’re already enrolled in Amazon Brand Registry, you’re ahead of the curve. This program protects your intellectual property and helps you establish a trusted brand on the Amazon platform.

It has some hefty requirements, like owning a registered trademark for your brand, but keep in mind that every difficult requirement you meet sets your brand apart from your competition.

You will be rewarded for doing the hard things that others aren’t willing to try.

Active Seller Account

This one kind of goes without saying, but you do need an active seller account in good standing with Amazon.

This means that you adhere to all of Amazon’s polices and meet the performance levels that are required of you.

Use of Amazon Attribution

To be eligible, you must use Amazon Attribution. This is essentially a measurement tool that allows you to use specific tags and links to generate data about your marketing efforts outside of Amazon.

It makes perfect sense that you need to use Amazon Attribution to be eligible for the brand referral bonus.

Eligible Products

Not all products are suited for the Brand Referral Bonus Program. Amazon may outline specific criteria for eligibility about which products can earn a referral bonus.

Certain products and maybe even entire categories of products may be excluded. It’s important to check Seller Central and stay up to date on the products that fit within the program’s framework.

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How is the Amazon Brand Referral Bonus Calculated?

On average, brands can get a 10% bonus on sales that qualify for the program. To figure out your expected bonus, you just need to take the total of your qualifying sales and multiply that by the minimum bonus rate for your product’s category.

However, keep in mind that the actual bonus you receive might be different. This is because things like shipping costs and whether you offer gift wrapping can change the bonus amount, and these factors can differ from one seller to another.

You can see the exact bonus you’ve earned for your sales in the weekly bonus report provided to you in Seller Central.

How to Enroll in Amazon’s Brand Referral Bonus Program

Are you ready to get your Amazon Brand Referral Bonus? Let’s get you enrolled in the program. The first step is to log into Seller Central, then follow these steps:

From Seller Central, click Brands in the drop-down and select Brand Referral Bonus from the fly-out menu.

Eligible brands will be able to enroll with one click. Otherwise, you will be prompted to enroll in Amazon Attribution.

Once you’re ready to go with Amazon Attribution, create Attribution tags for your products. In order to receive the bonus for your products, they must have Attribution tags.

When you have your tags, create your external advertising campaigns.

That’s it.

Mistakes to Avoid While Enrolling

Naturally, you want to avoid common mistakes during the enrollment process, so here are the key things to watch out for:

• Not Being Part of Amazon Brand Registry – Before you can benefit from the Brand Referral Bonus Program, ensure your brand is enrolled in the Amazon Brand Registry. This step is a must for access to the program and the other brand protection tools Amazon offers.
• Not Putting Enough Emphasis on Eligibility Criteria – Amazon is clear about what you need to be eligible to access the Amazon app referral program. Make sure you have all the requirements squared away beforehand to ensure a smooth enrollment process.
• Using Amazon Attribution Incorrectly – Amazon Attribution is essential for tracking the performance of your external marketing efforts and calculating your referral bonus. Incorrect setup or misuse of Amazon Attribution can result in inaccurate tracking and potentially lower bonuses.
• Ignoring Amazon Guidelines and Policies – The guidelines and policies are specific. Know how you can market your products to drive external traffic to your Amazon listing while adhering to these guidelines. Ignoring these factors will disqualify you for the Amazon referral bonus and may also lead to penalties on your Amazon Seller account.
• Not Optimizing Your Marketing Efforts – Driving traffic isn’t enough. You will need a hands-on approach with your campaigns to ensure you are targeting the right audience and using calls-to-action that drive conversions. Poor optimization will lead to disappointing results.
• Not Monitoring Your Performance and Adjusting Your Strategies Accordingly – The Amazon Brand Referral Bonus Program provides valuable data through Amazon Attribution. Failing to regularly review this data and adjust your marketing strategies accordingly can result in missed opportunities to improve your campaigns and increase your bonus.
• Disregarding the Impact of Returns – Remember that returns will affect your referral bonus, as Amazon adjusts bonuses based on net sales (after returns). Make sure you account for your return rates so your expectations are accurate.

Frequently Asked Questions

What Types of Referrals Qualify for the Bonus?

The types of referrals that qualify for the Amazon Brand Referral Bonus are those generated from external traffic sources driven to Amazon listings through marketing efforts outside of Amazon. This includes traffic from social media, email marketing, search engines, or any other digital marketing channel.

When Do Sellers Receive Their Referral Bonuses?

Sellers receive their Amazon Brand Referral Bonuses approximately 60 days after the end of the month in which the referred sales occurred.

Are There Any Fees to Participate in the Brand Referral Bonus Program?

No, there are no fees for sellers to participate in the Amazon Brand Referral Bonus Program.

How Can Sellers Track Their Referral Bonus Earnings?

Sellers can track their Amazon Brand Referral Bonus earnings through Amazon Attribution, which provides detailed reports on the performance of their external marketing campaigns, including sales and conversion metrics. Additionally, Amazon provides a weekly bonus report accessible through Seller Central.

What Marketing Strategies Maximize the Benefits of the Brand Referral Bonus?

To maximize the benefits of the Amazon Brand Referral Bonus, sellers should employ a multi-channel marketing strategy that includes:

• SEO
• Social media marketing
• Email marketing
• Influencer Partnerships
• Paid advertising

Can Bonuses Be Used for All Types of Products on Amazon?

Yes and no, the Amazon Brand Referral Bonus can be earned for sales of nearly all types of products sold on Amazon. However, the exact bonus rate may vary depending on the product category. It’s important for sellers to note that while the program is broadly applicable, Amazon may have specific eligibility criteria for products or categories that can earn a bonus. Sellers should review the program’s terms and conditions and check the eligibility of their products within the Brand Referral Bonus program guidelines to ensure they can maximize their benefits across their product range.

Final Thoughts

The Amazon Brand Referral Bonus is a wonderful tool for sellers looking to leverage their external marketing on Amazon while offsetting some of the cost of those efforts.

If you’re already using Amazon Attribution, then the brand referral program is really a no-brainer. It allows you a competitive edge while reducing your overall advertising costs when you do it right.

Take a strategic approach to marketing and follow the Amazon guidelines carefully. Avoid the common mistakes we mentioned and optimize your strategies.

Embracing the Amazon Brand Referral Bonus program is an excellent opportunity for sellers to build their brand, optimize their presence on Amazon, and unlock greater profitability. With diligent planning and execution, this program can significantly bolster your sales strategy in the competitive Amazon marketplace.