High Ticket Items - Amazon

by adam westrop 46 replies
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.
#main internet marketing discussion forum #amazon #high #items #ticket
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  • 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.
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    • 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
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      • 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.
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  • 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
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    • 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).
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      • 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
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        • Profile picture of the author jan roos
          Originally Posted by adam westrop View Post

          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
          Why not? I have a site that made 3 sales so far this month for a $11000 pysical product.

          The 3 sales came from 86 visitors and my commission is $1900 so far for the month. I think everyone should have at least one high ticket site.

          Cheers
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          • Profile picture of the author sergit
            Jan,

            do you find that pre-sell has to be much more thorough with over $1,000 item sites compare to small items?
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          • Profile picture of the author ryodante
            Jan, i'm tried searching a good high ticket items niche, but not really sure whether my choice is right or not. I know that there are several niche we can target there, but still searching here. About this high ticket items, who knows? maybe we can sell a diamond which costs at $100.000? It's just like a game, right?
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            • Profile picture of the author jan roos
              Originally Posted by sergit View Post

              Jan,

              do you find that pre-sell has to be much more thorough with over $1,000 item sites compare to small items?
              Actually my high ticket site is ugly as hell and was one of the first sites I built. The reviews were written by me and I am not a great writer so to answer your question no you don't need anything more to sell a high ticket item than a $100 item. It's the same thing..

              Originally Posted by Sam90 View Post

              For those with Amazon affiliate sites, do you have a blog with reviews for products that you update weekly/monthly?
              Yes we have a site with reviews for a whole line of products and the sites do not have to be updated that often. I add a review about once or twice a month to my sites once they are established with the initial 7 or 8 reviews.

              Cheers
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              • Originally Posted by jan roos View Post

                Actually my high ticket site is ugly as hell and was one of the first sites I built. The reviews were written by me and I am not a great writer so to answer your question no you don't need anything more to sell a high ticket item than a $100 item. It's the same thing..



                Yes we have a site with reviews for a whole line of products and the sites do not have to be updated that often. I add a review about once or twice a month to my sites once they are established with the initial 7 or 8 reviews.

                Cheers
                11,000 dollars or was that a typo? Is that on Amazon? If it is, and you hit the 8 percent comission level you get 880 dollars per sale
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                • Profile picture of the author jan roos
                  Originally Posted by Jason Perez O'Connor View Post

                  11,000 dollars or was that a typo? Is that on Amazon? If it is, and you hit the 8 percent comission level you get 880 dollars per sale
                  No it's not on Amazon but it is an $4000 to $30000 Physical product at 9% commission but they cap it on a max commission of $500 per sale which is still not bad.

                  Look at Cj.com, linkshare and the Google aff network to find some of these niches and also Amazon.

                  Cheers
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                  • Originally Posted by jan roos View Post

                    No it's not on Amazon but it is an $4000 to $30000 Physical product at 9% commission but they cap it on a max commission of $500 per sale which is still not bad.

                    Look at Cj.com, linkshare and the Google aff network to find some of these niches and also Amazon.

                    Cheers
                    Ah, cheers for the quick response!

                    Will check them out.
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                  • Profile picture of the author adam westrop
                    Originally Posted by jan roos View Post

                    No it's not on Amazon but it is an $4000 to $30000 Physical product at 9% commission but they cap it on a max commission of $500 per sale which is still not bad.

                    Look at Cj.com, linkshare and the Google aff network to find some of these niches and also Amazon.

                    Cheers
                    I've looked at some of the other networks, and some of them have the advantage of higher cookie periods then Amazon, however here is my issue -

                    Im doing SEO and will soon outrank Amazon on a good money term, and for these items I could partner with several people, i.e. Walmart, Buy.com etc etc, however the second spot is Amazon itself and they do have the cheapest and widest range of products on offer and their sales page from the SERPS kicks some a*s.

                    I've also read around and generally it seems Amazon conversion is the highest you will normally achieve, with people quoting common conversion rates from CJ programmes of like 2-3%.

                    Am I right in thinking CJ and Shareasale are useful for really niche specific items etc?
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                  • Profile picture of the author rioguy
                    Originally Posted by jan roos View Post

                    No it's not on Amazon but it is an $4000 to $30000 Physical product at 9% commission but they cap it on a max commission of $500 per sale which is still not bad.

                    Look at Cj.com, linkshare and the Google aff network to find some of these niches and also Amazon.

                    Cheers

                    Can you give us some specifics as to what type of products these are? The more specific the better. At least the general category (i.e. kitchen appliances or cameras or ...?

                    Thanks,
                    Dave
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                    • Originally Posted by tritrain View Post

                      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.
                      This is exactly how I do it, as well. While the high-ticket items obviously give a much better commission per sale, more often than not I get the higher rate because I sell a LOT more of the lower-priced items.

                      I also have quite a number of repeat customers who will buy a few lower-priced items first, then eventually get the more expensive item(s). I guess they want to test the water first or something, I really don't know what's up with that.
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                      • Profile picture of the author madpoet
                        To get the higher commission levels you ALWAYS want to have some sites dedicated to easy to sell lower priced items. They drive up your number of sales per month, and you reap the higher commissions from the big ticket items. I love getting those big ticket item sales myself, but I admit all too often I neglect the "feeder" type sites and see my overall numbers drop because of it.
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                • Profile picture of the author Kelly Verge
                  Originally Posted by Jason Perez O'Connor View Post

                  11,000 dollars or was that a typo? Is that on Amazon? If it is, and you hit the 8 percent comission level you get 880 dollars per sale
                  I just posted a list of high-dollar Amazon items on my blog: High-Commision Items on Amazon | Backlinkage

                  Good luck with them!
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  • 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
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    • 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?
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  • 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
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    • 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....
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      • 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?
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        • 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:
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  • 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.
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    • 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.
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  • 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.
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    • 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.
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      • 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.
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  • 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.
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  • 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
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  • 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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  • Profile picture of the author Sam90
    For those with Amazon affiliate sites, do you have a blog with reviews for products that you update weekly/monthly?
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    • Profile picture of the author Michael Franklin
      Originally Posted by Sam90 View Post

      For those with Amazon affiliate sites, do you have a blog with reviews for products that you update weekly/monthly?
      What I tend to do is build the site upfront with 3-7 products and then update the site once every 3-4 weeks, adjusting for price changes and replacing obsolete/discontinued products with other products.
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  • Profile picture of the author mygold
    You mention that best option is to have range of item i have no contradiction with you to this point, but later you told you are selling one item, so i think your conversion will not be relative, and people can tend to shop around thinking that more for high item ticket. Though i don't know your target market.
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  • Profile picture of the author PPC-Coach
    Do a mix. That way you increase your number of sales and therefore your percentage on the rest. So when you do sell something big, you make more because your lower priced items sold more.

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  • Profile picture of the author weblink29
    I just jumped into Amazon stuff recently. I built some websites surrounding super low priced stuff. Some medium priced items $100-$500. And some high priced items over $500.

    So far I've sold quite a few products from $1-$50 and a few between $50 and $250. Nothing over $250 yet but I think it's just a matter of time.
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    Nothing to see here folks.....move along.

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  • Profile picture of the author PPC-Coach
    The higher ticket items do have lower volume, but it's offset by the larger commissions. So doing the mix is the best way to get the best of all worlds imho.

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  • Profile picture of the author Michael Franklin
    My rule of thumb is to stick with $80 items or more but really the more important focus is to just get as many different sites out there as you can.

    You'll have many unrelated sales due to the 24 hour cookie so although you'll make some small price sales, you'll also get some insights into new products that you might consider going after in future sites!

    If you do your research right, and follow the consumer demand (based on keyword research), you'll set yourself up for some nice paydays.
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    • Profile picture of the author tomituck
      Hi Everyone , I'm a newbie in this internet marketing thing.
      My question is about this 24 hour cookie. How long can I take to sell this item, 24hours? Can I sell this item throughout the year? Must it be refreshed, renewed or what?

      Any help please

      Thanks
      Tommy
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      • Profile picture of the author dynamoblue
        Originally Posted by tomituck View Post

        Hi Everyone , I'm a newbie in this internet marketing thing.
        My question is about this 24 hour cookie. How long can I take to sell this item, 24hours? Can I sell this item throughout the year? Must it be refreshed, renewed or what?

        Any help please

        Thanks
        Tommy
        Hi there Tommy. The cookie that is being referenced is the code stored in the customer's browser when they've gone through your affiliate link to Amazon. Anything the customer purchases from Amazon within 24 hours of going through your affiliate link will be linked to you and you get the commission.
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  • Profile picture of the author steven Clayden
    Mix it up, high ticket, low ticket. I use hubpages for low ticket products. My best seller is a novelty mug, people usually buy 3 or 4 at a time, this bumps up my commission rate for the high ticket items.
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