What if we told you to list 10 things that aren’t available online?
We are sure that it will take longer than expected to list them, because almost everything from fashion, and electronics to groceries, and medicines are available online.
Every day 100s of online brands are launched to compete in the already crowded market.
And to compete and stand out, you need a lot of capital and resources to invest.
Do you have it? YES, great!
NO, then here we are going to discuss a strategy that will help you.
(Even if you have capital, you can use this to improve your ROI and get higher conversion rates)
In this article, we are going to discuss some of the most effective affiliate marketing strategies for eCommerce. We’ll discuss how you can set up your eCommerce affiliate program to get the best ROI, and what are the things you can implement to get better returns.
Let’s first start with why eCommerce businesses should invest in affiliate marketing.
Why eCommerce businesses should go with affiliate marketing? #
Cost-Effectiveness:
You might be spending money on ads, email marketing, and branding strategies. Thou they do deliver results will cost you large sums of money and there is no guarantee that you will get a better ROI. But that’s not the case with affiliate marketing for eCommerce.
Affiliate marketing is performance-based marketing, so you only have to pay affiliates when they bring sales. This approach helps you save costs, minimize risk, and optimize your marketing budget to reach your business goals faster.
Expanded Audience Reach:
If you have just started your eCommerce business, it will take a while to build an audience that trusts you and your product offerings. Given that it is a time-consuming process, affiliate marketers can help you with this.
They already have a loyal following on social media and their blogs. Their audience trusts them with their product recommendations. So, by tapping into their network, you can easily get access to a wide range of audiences globally without paying any advertisement cost upfront.
SEO Enhancement:
You know how complicated SEO is and how long it takes to see results. Now, with generative AI you might be thinking about getting ranks quickly and publishing a ton of content. But hold on! That is not true. Posting a bulk of content isn’t going to help you rank faster.
You will still need to invest time and money in hiring experts, building SEO strategies and so much more. So, while you do that, you can reach out to affiliates who already have websites that are ranking, and they can promote your products with genuine reviews. This is where affiliate marketing strategies for eCommerce businesses come into play.
And not just that, from the SEO perspective, if the affiliate is pointing a link towards your website, it is going to boost your site’s reputation and DA. This can result in a higher ranking and an increase in organic traffic.
Increased Traffic and Sales:
Typical ads with attractive graphics, some discount offers, and a big CTA is a thing of the past now. People are moving more towards product recommendations by real people or one might say “Influencers”.
Influencers are often affiliated with brands to promote their products and they can bring traffic that is more likely to convert. So, if you reach out to affiliates specifically in your niche, it is going to give you better conversions.
Brand Visibility:
Think of affiliates as a part of your marketing team who are getting paid for bringing sales. You have to think of affiliate partnerships on a broader level. They are not just bringing sales to your platform, they are also helping in enhancing your brand visibility.
Big brands have brand ambassadors, and small brands have affiliates/influencers. That is the unsaid truth of the times we live in. They have become a big part of the online economy, and they have the credibility that can give your brands the visibility it need.
Now that you know how it benefits, let’s talk about how you can set up an affiliate program. Lets first understand what is affiliate program.
Setting Up an Effective eCommerce Affiliate Program #
1. Choose the Right Network
When starting an affiliate program, you are not going to find affiliates on your own. So, it is a better choice to go with affiliate networks that already have a large pool of affiliates. So, selecting an affiliate network is an important step in launching a successful eCommerce affiliate program.
You have to consider a network that aligns with your business size and the nature of your product offerings. Popular platforms like ShareASale, and Commission Junction offer robust support and extensive networks of affiliates. For smaller e-commerce sites, platforms like Rakuten or AvantLink might be more suitable.
2. Define Clear Terms and Conditions
It is important to establish clear and comprehensive terms and conditions for your eCommerce affiliate program. This clarity helps prevent misunderstandings and conflicts with affiliates. Your terms should cover aspects such as payment schedules, acceptable marketing practices, and the use of branded content.
It’s also important to define the rules around copyright, trademarks, and the responsibility of each party. These terms ensure that both you and your affiliates understand the scope of the agreement.
3. Determine Commission Structures
You see, you ain’t the only eCommerce brand looking for the best affiliates in the world. 81% of brands are already into affiliate marketing and everyone has one single goal, which is to attract the best affiliates to promote their products. So setting up a competitive and sustainable commission structure is important for your program.
Why we have mentioned sustainability is because what most brands do is, they offer higher commission rates in the beginning and they start reducing it gradually as their sale grows. Because as the brands grow, the cost of marketing, and other business aspects starts to grow.
So, they start cutting down on the affiliate’s commission. This might be good for business but it can impact your credibility in affiliate marketers. If you want to offer higher commissions and still be sustainable, you can go with a tiered commission structure. So, those who bring more sales get paid higher commissions.
4. Implement Tracking and Payment Tools
Effective tracking and payment tools are important for managing an affiliate program. This is something you cannot miss out on. Imagine waking up Monday morning, and seeing an email from an affiliate asking for a $1000 commission that you don’t have any records for. It wouldn’t be one of those things you want to wake up to.
So, having reliable tracking software that can accurately track and record sales for your program is important. If you have chosen the right network, these won’t be an issue. Because affiliate networks have already implemented sophisticated tools for tracking and distributing commissions. So, if you just do the first step right, almost everything will be taken care of.
No matter how good and reputed the network is, we have always seen complaints about issues with tracking. By spending 10+ years in the industry, we have understood that these issues result in unexpected losses. So, we have built software that accurately tracks all the affiliate earnings and merchant sales.
If you already have a pool of affiliates for your eCommerce brand and you are looking to work independently with them, AffiliateTrack can help you get rid of middlemen and provide 100% commission to your affiliates.
With no one to take a cut out of it, you can attract more affiliates to work with you. Also, it gives you the freedom to set your own terms and set up a program with commission structures that suit you best.
And the best thing, it is fully customizable.
You can get AffiliateTrack for a one time setup fee. No monthly recurring fee, no hidden cost!
Effective Affiliate Marketing Strategies for eCommerce #
Identify Suitable Affiliates
The success of your eCommerce affiliate program largely depends on working with the right affiliates. Focus on identifying individuals or companies whose audiences align closely with your target market and brand values.
Look for affiliates who are trusted by their followers and have a proven track record of influencing consumer behavior. If you are working with affiliate networks to promote your affiliate program, use these networks to find top performers in your niche and consider reaching out to niche bloggers, influencers, and industry leaders.
Provide tools and resources to your affiliates
Once you have the affiliates on board, provide them with all the tools and information they need to successfully promote your products. It includes access to promotional materials such as banners, links, and branded content, as well as detailed product information and unique selling propositions.
Providing these ready to use materials can help your affiliates understand your products better and promote them more effectively. This is a key aspect of affiliate marketing strategies for eCommerce, as it ensures that your affiliates can leverage high-quality content and detailed product insights to drive conversions.
Also, offering exclusive previews and samples can help affiliates provide genuine reviews and testimonials, which can drive more conversions. Think of YouTubers like MKBHD, how do they post a review as soon as the product is announced?
It is because companies provide them exclusive previews of products and want them to review them. People rely on these reviews to make purchase decisions, demonstrating the power of well-executed affiliate marketing strategies for eCommerce in driving consumer engagement and sales.
Maintain Regular Communication
Effective communication is important in building long term relationships with your affiliates. Create channels where you can provide regular updates, changes in pricing, policies, and upcoming marketing campaigns.
These information helps them plan their campaigns and help you get more sales during the campaign period. Also, you should be open to feedback to understand their needs and any challenges they face in promoting your product. This might seem something very simple, but the affiliate industry needs brands that have quick support.
Monitor Affiliate Performance
To ensure the ongoing success of your eCommerce affiliate program, it’s important to continuously monitor and analyze the performance of your affiliates.
Use your affiliate tracking tools to measure key metrics such as click-through rates, conversion rates, and the overall sales each affiliate generates. You can say this is one of the most important strategies for launching a successful eCommerce affiliate program.
Regularly reviewing these metrics helps you identify high performers who may be eligible for higher commission tiers or other incentives, as well as underperformers who may need additional support or training. You should regularly measure the KPIs mentioned below:
Key Performance Indicators (KPIs) to monitor
- Click-Through Rate (CTR)
- Conversion Rate
- Average Order Value (AOV)
- Return on Investment (ROI)
- Affiliate Earnings Per Click (EPC)
- Customer Retention Rate
- Cost Per Acquisition (CPA)
Conclusion
Following these affiliate marketing strategies for eCommerce businesses is one of the most effective ingredients, especially for those looking to increase their reach, maximize marketing efficiency, and achieve substantial growth. By understanding and implementing a structured affiliate program, actively managing affiliate relationships, and continuously tracking performance, eCommerce businesses can reap significant benefits from this dynamic marketing channel.
