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Amazon or directly through merchant?

by Anton543
7 replies
I have a choice of promoting a product which a merhcant sells through their own site and also as a third party seller on Amazon. I think its them operating under a different name.

Commission through Shareasale is 15% and 4% on Amazon.

60 day cookie against 24 hours.

Is this as straighforward as it seems?
#amazon #choice #directly #merchant
  • Profile picture of the author 0xFF
    For me, at least in term of relationship, it's always better to be in direct. You never know the future and you have more chance to stay in the game if you are in direct and build a real relation rather than going through an intermediary (and here an expansive intermediary). Also, in term of support, again, shorter is better!
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    • Profile picture of the author dana67
      I agree. Direct relationships can grow and possibly bring more opportunities in the future too.
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      • Profile picture of the author Anton543
        Originally Posted by dana67 View Post

        I agree. Direct relationships can grow and possibly bring more opportunities in the future too.
        Well, the second one isn't direct relationship as such, it is through Shareasale, but its just that I direct the vistors to the merchan't very own site as opposed to a third party page on Amazon. I might see if I could get the merchant to dropship it for me because the margins will far exceed the commission rate. But then you have to weigh up the fact that people might prefer to buy it from the product's merchant site.
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  • Profile picture of the author myob
    Originally Posted by Anton543 View Post

    Is this as straighforward as it seems?
    No, it is not.

    Personally, I would choose the Amazon option because I have found conversion rates can be as much as 3-4 times greater and commissions are paid on any product purchased within the shopping session. With Amazon commissions topping out at 8%, real profits are quite competitive with Shareasale.

    The cookie duration is actually a misleading metric because the frequency of followup promotions is what increases the chances of making a sale; not the length of time. Besides, any cookie can be easily wiped out by another affiliate's promotion.
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    • Profile picture of the author Anton543
      Originally Posted by myob View Post

      No, it is not.

      Personally, I would choose the Amazon option because I have found conversion rates can be as much as 3-4 times greater and commissions are paid on any product purchased within the shopping session. With Amazon commissions topping out at 8%, real profits are quite competitive with Shareasale.

      The cookie duration is actually a misleading metric because the frequency of followup promotions is what increases the chances of making a sale; not the length of time. Besides, any cookie can be easily wiped out by another affiliate's promotion.
      But a 24-hour cookie will be no good for the affiliate if Amazon turns the prospect into a buyer with follow up promotions. That's the whole idea with the Amazon 24-hour cookie. You market products for them (with reviews and content) but they get the sale (unless the product is in the basket, in which case the cookie effectively becomes 30 days). So many people don't buy right away (often coming back few days later).
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      • Profile picture of the author myob
        The merchants on Shareasale and other affiliate networks are all doing essentially the same thing as Amazon; building their customer lists on the back end of affiliate marketing. The only real difference is that Amazon is far superior in their conversion algorithm. For maximum leverage, you need to follow up with prospects at least as frequently as the cookie cycle. It can take anywhere from 5-12 promotion exposures to make a sale, and these guys are counting on it.
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  • Profile picture of the author gange10
    Always go with the Amazon option as sales tend to be higher.
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