High Ticket Items - Amazon

Profile picture of the author adam westrop by
We all know Amazon is successful, what I want to know, is Amazon as 'relatively' good at selling high ticket items as low ticket items?

Lets take a commission rate of 4%.On say a $30 iphone case, you get $1.20, and lets also assume that your conversion rate for this as it 'fits' into the spontaneous buy section, is around 8%

Now lets take a $400 item, such as a TV or watch etc, commission @ 4% = $16, and if your conversion rate is say 1%.

Lets throw 'targeted' traffic into the equation of 1000 unique visitors, this means if you are selling the high ticket items, you make $160 monthly, and if you are selling the iphone cases, you are making $96.00 (I KNOW AMAZON COMMISSIONS ARE TIERED, BUT I AM IGNORING THAT FOR THE MO)

So in this case the high ticket items win, however what if your conversion on the high ticket items is 0.3% that then means the lower ticket items win!

I know the best option is to have a range of items and related items where price does vary..... But lets just assume I am selling just one high priced item, would the conversion be relative? Or do people tend to shop around and 'think' more for high ticket items, leaving the Amazon 24 hour cookie useless?

Any advice appreciated.
#internet marketing #amazon #high #items #ticket

  • Profile picture of the author merlincat
    Hi,

    I notice you live in the UK, does Amazon cap commission in the UK?

    I have heard there is a £7 cap per item in the uk, i'm sure someone else on here knows more about this.
  • Profile picture of the author Mike Hlatky
    Why can't you sell both high ticket and lower priced items?

    For example, I have a few sites that sell items priced under $50. These sites collectively get a good amount of traffic and a large percentage of the NUMBER OF SALES. I use these sites mainly to get the Amazon referral percentage higher.

    Then, with my higher ticket priced items, that is where the money comes from, but now with a higher commission
  • Profile picture of the author Hamida Harland
    I think the conversion rate depends on the type of product, and how you promote it, rather than the price.

    I promote mostly products from $100-$600, and the conversion rate isn't much different to the lower priced items. This won't be the case for every product though.

    It also depends on what price you consider 'high ticket'. Anything over $1000 and the conversion rate does begin to drop (from what I've heard - I don't promote anything this expensive...yet anyway).
  • Profile picture of the author adam westrop
    Originally Posted by Hamida Harland View Post

    I think the conversion rate depends on the type of product, and how you promote it, rather than the price.

    I promote mostly products from $100-$600, and the conversion rate isn't much different to the lower priced items. This won't be the case for every product though.

    It also depends on what price you consider 'high ticket'. Anything over $1000 and the conversion rate does begin to drop (from what I've heard - I don't promote anything this expensive...yet anyway).
    Many thanks Hamida,

    This is great, just what I was after.

    I wouldn't promote anything above $1000 either, but good to know the low to mid $100's should be 'OK' as long as traffic etc is good.

    Thanks
  • Profile picture of the author enterpryzman
    I sold Flip Video Camera's via their program several years ago and even with buying my traffic from Google, I was making about $ 1,000. monthly from just the one product. It is possible. The more you sell, the higher the commission.

    Enterpryzman
  • Profile picture of the author Mrmuscle90
    Originally Posted by merlincat View Post

    Hi,

    I notice you live in the UK, does Amazon cap commission in the UK?

    I have heard there is a £7 cap per item in the uk, i'm sure someone else on here knows more about this.
    No i havnt experienced a cap, i have commissions over £7 all the time
  • Profile picture of the author adam westrop
    Originally Posted by enterpryzman View Post

    I sold Flip Video Camera's via their program several years ago and even with buying my traffic from Google, I was making about $ 1,000. monthly from just the one product. It is possible. The more you sell, the higher the commission.

    Enterpryzman
    Was the cookie period still 24 hours back then?
  • Profile picture of the author dadamson
    Just keep in mind the commissions for Amazon are retroactive..

    Meaning that if you sell enough items to reach an 8% commission, the commission applies to everything you have sold in that month, even before you broke the commission thresholds.

    -Dave
  • Profile picture of the author AceOfShirts
    Have you considered trying to see if the products are available on commission junction? The commissions are usually the same or higher and the cookies last longer.
  • Profile picture of the author BarryOnline
    Originally Posted by Mrmuscle90 View Post

    No i havnt experienced a cap, i have commissions over £7 all the time

    Amazon do cap high cost items at £7.

    I sold a £1,449 item & got £7 commission.
  • Profile picture of the author BarryOnline
    Amazon -

    In the past we had product line-specific Revenue Share caps and have received feedback that it can be difficult to understand which product lines have revenue caps, at which levels, and which do not. Therefore, starting July 1, 2009, we will apply a standard cap of £7.00 GBP across all product lines. As a reminder, the cap applies only to individual items and not to the overall value of the shopping basket. It also applies only to Associates who are enrolled in the Programme under the Performance Fee Structure.
  • Profile picture of the author adam westrop
    Originally Posted by BarryOnline View Post

    Amazon -

    In the past we had product line-specific Revenue Share caps and have received feedback that it can be difficult to understand which product lines have revenue caps, at which levels, and which do not. Therefore, starting July 1, 2009, we will apply a standard cap of £7.00 GBP across all product lines. As a reminder, the cap applies only to individual items and not to the overall value of the shopping basket. It also applies only to Associates who are enrolled in the Programme under the Performance Fee Structure.
    Im based in the UK like you,

    However unlike you, I promote Amazon.com and sell to US people where there is no cap.

    I knew about the cap and because of it went elsewhere... If you could shift a good amount of items and could get around a 7% commission rate that means its not worthwhile selling anything of value in excess of £100... Which is sh*t.
  • Profile picture of the author adam westrop
    Originally Posted by dnsg View Post

    Have you considered trying to see if the products are available on commission junction? The commissions are usually the same or higher and the cookies last longer.
    A very strong consideration, but looking at noise from the internet in general, it seems that the Amazon conversion rate trumps (yep I said it) any of the other CJ boys from what I've read. Amazon obviously have the ultimate conversion site and the most trusted site in the world to purchase an item from.
  • Profile picture of the author Andy Yusuf
    Originally Posted by dadamson View Post

    Just keep in mind the commissions for Amazon are retroactive..

    Meaning that if you sell enough items to reach an 8% commission, the commission applies to everything you have sold in that month, even before you broke the commission thresholds.

    -Dave
    but it stick 4% for electronic products....
  • Profile picture of the author adam westrop
    Originally Posted by Andy Yusuf View Post

    but it stick 4% for electronic products....

    No way.... Really? That kind of sucks, I have a couple of good electronic products lined up...

    Have you got a reference please?
  • Profile picture of the author sergit
    compensation

    but at the same time I remember when I was selling blu-ray players a year ago I was getting 6.5-7%. :confused:
  • Profile picture of the author Michael Franklin
    I've found that it works out close to the same when comparing high-ticket items to low-ticket items since the conversion tends to run higher on low-ticket items.

    So my suggestion would be to list different products with different price points.

    As for the 24 hour cookie, you will find it to play a major factor in your overall sales.
  • Profile picture of the author BarryOnline
    Originally Posted by adam westrop View Post

    Im based in the UK like you,

    However unlike you, I promote Amazon.com and sell to US people where there is no cap.

    I knew about the cap and because of it went elsewhere... If you could shift a good amount of items and could get around a 7% commission rate that means its not worthwhile selling anything of value in excess of £100... Which is sh*t.
    The UK cap sucks but it didn’t stop me making money from Amazon.co.uk

    I've also considered moving to Amazon.com but there's also a down side to that too where the currency conversion reduces your earnings.

    If for example I made $500 in one month from Amazon.com it would equate to around £300.

    I also find that there's a little less competition to deal with in Google.co.uk

    It’s a numbers game, if you can get a large volume of traffic plus you pre sell the product well enough you will earn from Amazon UK. At the moment I have one site that’s making close to £300 a month in commission.
  • Profile picture of the author TBInternetMarketing
    As a rule of thumb, I don't sell anything less than $100. The other day I sold an item for $700, and the same user bought about $100's worth of goods to go with it. Happy days
  • Profile picture of the author tritrain
    You should list both lower priced frequent-sellers and higher priced products.

    You want to get into the higher tiers by volume, then your higher priced products will give you a higher commission.

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