Promoting Lower Cost Amazon Products

18 replies
Everywhere I read, its a case promote higher priced products like $100 and above. I like to know why not go for $15 products. Surely you'll sell more and (in my opinion) sell loads of other products from which you'll get commisions. Any thoughts?
#amazon #cost #lower #products #promoting
  • Profile picture of the author lanserno
    Originally Posted by interwebbuzz View Post

    Everywhere I read, its a case promote higher priced products like $100 and above. I like to know why not go for $15 products. Surely you'll sell more and (in my opinion) sell loads of other products from which you'll get commisions. Any thoughts?
    Well I agree with you. Dont know where did you find all that info for selling products with price +$100.... go for product's $9.99 - $19.99 I would say. Commision in that range should be +70%... most of 9.99 you can find 100% commision...
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    • Profile picture of the author Lucian Lada
      Originally Posted by lanserno View Post

      Well I agree with you. Dont know where did you find all that info for selling products with price +$100.... go for product's $9.99 - $19.99 I would say. Commision in that range should be +70%... most of 9.99 you can find 100% commision...
      Have you even read the thread's title? It says Amazon. Last time I checked, commissions were between 4% and 8.5%.

      Anyway, the problem with promoting Amazon products priced so low is that, well, you get very low commissions. Some say you make up for it by selling a lot more, but until you see it for yourself, it's hard to judge.

      However, you can use low-priced items to build a list of buyers and sell them more expensive stuff down the road. For example, in the fishing niche, you can start off with a $12 book to build a list of buyers, and then use that list to promote incrementally higher priced stuff like rods, reels, nets, etc.

      Another use of promoting affordable stuff is to get to a higher commission percentage tier quicker and make more money per sale from the more expensive stuff. As you probably know, Amazon pays out depending on how many orders you've brought it, regardless of their size. So many people choose to set-up websites dedicated to selling cheap stuff like books, CDs, t-shirts, cheap gifts, etc. so they get qualified for higher percentages sooner for their "real" websites where they sell more expensive Amazon products.
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  • Profile picture of the author deepCode
    You might sell more, but will you sell 7 times as many?

    The thing is, if you - for example - make an affiliate site for smartphones and one for smartphone-battery, you will attract 2 different kind of visitors: People that are looking for smartphones, and people looking for smartphone batteries.

    That said, the % of ppl that look for smartphone batteries and buy a smartphone battery is not 7 times as high as the % of ppl that look for smartphones and buy a smartphone

    Also note that Amazon Cookie lifetime is quite short.
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    • Profile picture of the author danieldesai
      Originally Posted by deepCode View Post

      You might sell more, but will you sell 7 times as many?
      deepCode hit the nail on the head.

      While you'll most likely sell more units, the question you need to ask is "will the extra sales compensate for the reduced commissions?"

      There have been a lot of cases where people make more money from selling fewer expensive products as opposed to a lot of cheap ones due to the higher payout but this boils down to your personal/specific situation.

      Regards,
      Daniel
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  • Profile picture of the author interwebbuzz
    The only reason why I ask is there are loads of amazon afliliate sites for expensive but not so many for lower priced ones. Yeah someone is going to say "get yourself a better website content etc" but there is only so many hours in the day and people have many different priorities.
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  • Profile picture of the author agmccall
    I promote what I think my visitors will need and like. I have a cooking site. One product I promote is a vegetable peeler that sells for less than $10.00 I use it and, in my opinion, is the best on the market, so why wouldn't I promote it.

    Something else to consider. A few years ago Amazon bought goodreads.com for about 150 million bucks. Goodreads is a site that reviews books and allows visitors to review books. They then link to the books on amazon. Most books, other than new releases, sell for less than $10.00. How many books do you think goodreads was selling to entice amazon to buy them.

    Final thought. Amazon are the kings of upselling. As an affiliate all you need to do is get someone to amazon and chances are they will buy more than you sent them to buy.

    al
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    • Profile picture of the author greenowl123
      Originally Posted by agmccall View Post


      Final thought. Amazon are the kings of upselling. As an affiliate all you need to do is get someone to amazon and chances are they will buy more than you sent them to buy.

      al
      Good point.

      One of the niches I promote to earn via Amazon is in a sporting niche where there are lots of products ranging from $10 up to $500 or more.

      A lot of times a person will initially view my blog posts which review products with a price of $10 or $20 and then go to Amazon (via my affiliate link of course) and buy the $10 product, and then see a related $100 or $300 product in the same sporting niche, realize it is a great deal, and buy it as well.
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      • Profile picture of the author kilgore
        Originally Posted by agmccall View Post

        I promote what I think my visitors will need and like. I have a cooking site. One product I promote is a vegetable peeler that sells for less than $10.00 I use it and, in my opinion, is the best on the market, so why wouldn't I promote it.
        This exactly. The first consideration always has to be the visitor. Nobody buys something because it will make a good commission for the seller, they buy something because they need or want it.

        Originally Posted by danieldesai View Post

        While you'll most likely sell more units, the question you need to ask is "will the extra sales compensate for the reduced commissions?"
        For kicks I did a quick query of my Amazon sales data and here's what I found:

        This past December we sold over 25,000 items costing $15 or under. For products costing over $250 we sold less than 50.

        I purposely chose December for two reasons. Admittedly the first reason was that it's Christmastime, so all the numbers are skewed high making the figures here a little more dramatic. But it's also the season where we tend to have the majority of our larger purchases. While, I'm not into sharing my income figures, it doesn't take a rocket scientist to see that selling lower-priced products is far more lucrative -- for us -- than selling more expensive ones, even in a high spending month like December.

        Originally Posted by HCFGrizzly View Post

        The problem with Amazon is it`s low low commission (8% at it`s maximum) so that is why people are shooting for the more expensive products.
        Let`s think a moment about what you said. Let`s say you don`t choose to sell a $100, but you choose to sell a $10 one.
        Now let`s imagine that you need 100 visitors to sell a product (we`ll assume they have the same conversion rate). In order for you to obtain the same amount of money from the low price product, you will need to have x10 more visitors.
        It`s not that hard to have 100 visitors a day, but 1000 visitors a day is a totally different thing (and this is just to get a $8 profit).
        The problem with your thinking is you're assuming that you'll get the same amount of traffic for a site selling $100 products as you will for products costing $10. But generally this is not the case at all.

        Moët & Chandon, makers of Dom Perignon, sell more champagne than anyone else in the world. But their revenue at $1.1 billion is nowhere near the Coca-Cola company's $44 billion. And you can say the same in just about any industry: would you rather own Toyota or Ferarri? Would you rather own McDonalds or Masa (the most expensive restaurant in New York)?

        The point is, people buy a lot more coke than Champagne. And a lot more people can afford Toyotas than they can Ferraris. And most people will never in their lives spend $600 per person on dinner, but they might get fast food weekly or even daily.

        The same holds true with online business. Most people will never buy a $1,000 digital product. Most people only buy one toaster oven or one shopvac or one dehumidifier -- at least for a long period of time. But there are some things they'll buy over and over again, especially at a lower price point. Thus with these sorts of products, you're more likely to get return visitors, which means more -- and much better quality -- traffic.

        This last point is something I really want to highlight. For the lower-priced model to work, you have to give people a reason to come back to you again and again. Part of that is choosing the types of products that people repeatedly buy (because not all cheaper products fall into this category). But it also largely comes down to actually running a great site -- and giving people a reason to come to you rather than just going to Amazon (or somewhere else) directly. This is why Al's point about giving your visitors what they're looking for is so important.

        One last comment: As mentioned above, "1000 visitors a day is a totally different thing" than 100 visitors a day. But even 1000 visitors a day is nothing. Keep in mind that on the internet the entire world is your potential customer.

        So if you can't give 1,000 people a day out of the 7 billion people in the world a reason to come to your site, just go home now. Get a job. You obviously don't think you have the talent or confidence to create something that is actually useful to people.

        You don't make money in online business hoping that there's a small place for half-assed work. Because just as on the internet everyone is your potential customer, everyone is also your potential competition. And if they find someone who does a better job delivering what they need, they'll go there instead. It's why 20% of businesses make 80% of the profit and the remaining 80% are fighting for 20% of the profit. You don't have to be an Apple or a Google or an Amazon. But you do have to do what you do better than your competition. And if you don't think you can get a measly 1,000 visitors a day, you obviously don't think you're up to the challenge.
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        • Profile picture of the author JohnMcCabe
          The answer, as usual, is to do both.

          Use low priced items to boost your items-sold count, and thus your commissions. Sell enough low priced items to move up the ranks from 4% to 8% and you've effectively doubled your commission on the high priced items.

          Another factor, and one that will get even better, is Amazon's free shipping threshold. When they started, you needed to spend $25 to get free shipping. I found myself adding items to my orders, as a consumer, to get the free shipping. As an associate, I saw I wasn't alone.

          Then Amazon raised the threshold to $35, and the trend continued. People would spend an extra $10 to avoid $6 or $7 shipping.

          Amazon just raised the threshold to $49. I'm guessing that the idea behind the increase was to make Prime more palatable at $99/yr. But I think the effect will be to increase order size in order for casual customers to get free shipping - they'll order more items and more expensive add on items.

          Show me another program that will pay commission on a cell phone case and on the sex toy added to the order to reach free shipping...
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  • Profile picture of the author Vintage Leather
    My thinking (and I'm not an experienced affiliate, but looking in to it) is that once you get your customer through your website and on to Amazon you are earning money when they buy. So an enticing special offer might get them through to buy something larger.

    That said the 24hr pixel, means that they need to react quickly for this to work. The Azon system installs a 30 day pixel though so if you get them through, you will earn on anything they buy in 30 days following the visit. (My understanding!)

    There may be others which also give an extended pixel. I haven't used the Azon system and it comes with mixed reviews, but in principal a business model of low cost enticements, could lead to the bigger payouts.
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    • Profile picture of the author Jack Sherphard
      Originally Posted by Vintage Leather View Post

      My thinking (and I'm not an experienced affiliate, but looking in to it) is that once you get your customer through your website and on to Amazon you are earning money when they buy. So an enticing special offer might get them through to buy something larger.

      That said the 24hr pixel, means that they need to react quickly for this to work. The Azon system installs a 30 day pixel though so if you get them through, you will earn on anything they buy in 30 days following the visit. (My understanding!)

      There may be others which also give an extended pixel. I haven't used the Azon system and it comes with mixed reviews, but in principal a business model of low cost enticements, could lead to the bigger payouts.
      This is the best answer. I think so
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  • Profile picture of the author HCFGrizzly
    Originally Posted by interwebbuzz View Post

    Everywhere I read, its a case promote higher priced products like $100 and above. I like to know why not go for $15 products. Surely you'll sell more and (in my opinion) sell loads of other products from which you'll get commisions. Any thoughts?
    The problem with Amazon is it`s low low commission (8% at it`s maximum) so that is why people are shooting for the more expensive products.
    Let`s think a moment about what you said. Let`s say you don`t choose to sell a $100, but you choose to sell a $10 one.
    Now let`s imagine that you need 100 visitors to sell a product (we`ll assume they have the same conversion rate). In order for you to obtain the same amount of money from the low price product, you will need to have x10 more visitors.
    It`s not that hard to have 100 visitors a day, but 1000 visitors a day is a totally different thing (and this is just to get a $8 profit).
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    • Profile picture of the author Jack Sherphard
      it's clear. And this is the best answer
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  • Profile picture of the author Alperr
    You want to earn money that is why For the same cost of advertising, work, time; you should sell better products so that you should earn more.
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  • Profile picture of the author HelenVendo
    Whether price is high or low, you can still have high or low promotion with different effects. So it's up to you.
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  • Profile picture of the author quadagon
    Personally I've done quite well as an Amazon associate just selling books.

    The beauty of books is that if you choose your niche well they are virtually evergreen.

    People seem to think new is better but a lot of best selling books have been in print for a serious length of time.

    I've found as well that SEO for such sites isn't as competitive so you can rank well for individual books.

    I have no problem borrowing from the big boys so on my sites there are recommendations for other books and an invite for others to leave reviews. Hey if it's good enough for goodreads.

    As long as your reviews are insightful and honest people can warm to you. This is important as if you create the right type of content you can go viral to your targeted audience quickly.

    If you are involved in a niche like preppers, evangelical end timers or star trek fans then there is also a world or related merchandise you can promote.

    Once you start to build a steady stream of visitors then there are a lot of opportunities to grow and make further money with just a bit of outside the box thinking.
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  • Profile picture of the author BradVert2013
    I used to promote ebooks on my old blog. The big thing to remember is that people rarely buy just one item on Amazon. When I'd look through my sales commission reports I'd see they bought whatever ebook my blog talked about, but then they'd buy other stuff, ranging from electronics to household items, toys, etc. It added up fast.

    Whatever you're promoting, your biggest worry should just be getting people to click on your link to Amazon. Amazon does the rest. They do a great job of up selling and making good recommendations. Even if they don't buy what you're promoting, chances are they will buy something. Amazon has spent millions of dollars optimizing their website.
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    • Profile picture of the author myob
      In general, it usually is best to promote low cost products (under $20) to generate leads, list-building, and often the add-on sale from Amazon's ingenuous algorithm. Consider books or supplies for high end (3-4 figure price range) products.

      Promoting relevant and incrementally higher end produicts to your buyer lists regularly can increase your chances of making sales within Amazon's 24-hour cookie window.
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