26 January 2024 in Amazon Brand Management

Amazon Referral Bonus: A Complete Guide to Reduce Amazon Fee

Amazon Referral Bonus
Amazon Referral Bonus

Are you an Amazon seller looking to maximize profits and reduce fees? Amazon’s Brand Referral Bonus is the best technique you might have been seeking. What will be the limit of your interest and joy if you not only sell your products but also get rewarded for driving traffic to your listings? That’s because of Amazon’sBrand Referral Bonus that savvy sellers wield to cut down on fees and amp up their earnings. 

Have you ever think what Amazon Referral Bonus is and how you can get profit? You can also reduce the fee charges of the Amazon Referral Bonus. Isn’t it interesting? Well, it is possible but obviously, you have to follow some techniques and tips through which you can not only get profit but with minimum charges. Now you must be wondering and curious to know. Then let me break your curiosity by telling you all about the Amazon Referral Bonus, how it works, and how you can reduce your fee. 

 In this comprehensive guide, we’ll be going to talk and equip you with strategies to reduce Amazon’s fees and propel your profits skyward. Get ready because your journey to reducing Amazon fees is about to get a whole lot more rewarding. Let’s start to know from the basics. 

What is the Amazon Brand Referral Bonus?

Amazon brand referral Bonus

The Amazon Brand Referral Bonus is a program designed to incentivize sellers to drive traffic to their Product listings on Amazon. When a customer purchases your product through an external link shared by you, Amazon rewards you with a referral bonus. Essentially, you’re being paid for driving traffic and sales to Amazon. The Amazon Brand Referral Bonus (BRB) is a program designed to reward sellers who successfully drive traffic from off-Amazon marketing sources to their products listed on Amazon. It incentivizes brands to utilize their marketing channels alongside the Amazon marketplace to boost sales.

Now instead of just waiting for customers to stumble upon them, you actively promote them outside of Amazon. When a customer clicks on your link from an external source (like your blog, social media, or website) and makes a purchase, Amazon rewards you with a referral bonus. 

This bonus isn’t just a pat on the back; it’s a clever strategy by Amazon to encourage sellers to amp up their marketing efforts, expand their customer base beyond the platform, and ultimately, boost sales. It’s a win-win scenario where sellers earn a little extra for their marketing savvy while Amazon sees increased sales and customer engagement.

Remember, External traffic serves as a powerful asset for Amazon sellers, offering benefits beyond the platform’s boundaries. This off-Amazon exposure holds the key to boosting ranking power, carving out a distinctive brand identity, and wielding control over traffic sources to nurture a dedicated customer. 

Why is Amazon offering this bonus? How Do Sellers Get Paid?

Amazon’s incentive behind the Brand Referral Bonus is akin to a savvy Business move combined with a sprinkle of encouragement for sellers to spread their wings beyond the Amazon nest.

Firstly, by encouraging sellers to drive traffic from external sources, Amazon expands its reach far beyond its platform. When sellers actively promote their products outside Amazon, it’s like opening new doors to potential customers who might not have otherwise found their way to the Amazon marketplace. This, in turn, translates to increased sales and broader brand exposure for Amazon.

As for how sellers get paid, it’s fairly straightforward. When a customer clicks on a seller’s external link and makes a purchase, Amazon tracks this and rewards the seller with a referral bonus. These bonuses are typically paid out through the usual Amazon payment methods, adding a delightful extra incentive to sellers’ revenue streams. Essentially, it’s Amazon saying, “Hey, good job bringing in customers! For your efforts, here’s a little something more.”

Who is eligible to take advantage of the Amazon Brand Bonus?

Amazon brand Referral Bonus
Amazon brand referral bonus and other things to know

For sellers who are a part of the Amazon Brand Registry, there is an incentive called the Amazon Brand Referral Bonus Program. It’s like being handed the keys to an exclusive source where sellers with registered trademarks or brands on Amazon get to enjoy the perks.

If you’ve taken the step to protect and register your brand on Amazon, you’re already on the right track. Being enrolled in the Brand Registry gives you access to a world of benefits, and the Brand Referral Bonus Program is one of the shiny gems in this treasure trove.

So, whether you’re a budding entrepreneur or a seasoned seller, if you’ve got that trademark or registered brand on Amazon, you’re in for the bonus bonanza. It’s Amazon’s way of acknowledging and rewarding sellers who invest in building their brand identity within Amazon.

Who is eligible for participation in the Amazon Brand Referral Bonus Program?

The Amazon Brand Referral Bonus Program is specifically designed for brand owners selling in the U.S. on Amazon, so eligibility hinges on two key factors:

1. Brand Ownership:

  • You must be the owner of the brand selling products on Amazon. Resellers or distributors without a registered trademark are not eligible for this program.
  • To verify your brand ownership, you need to be enrolled in the Amazon Brand Registry. This program gives you access to various brand protection and marketing tools, including the Brand Referral Bonus.

2. Using Amazon Attribution:

  • To track and measure sales driven by your off-platform marketing efforts, you must leverage Amazon Attribution. This tool acts like Google Analytics for external traffic, attributing purchases to your ads, social media posts, or other marketing channels outside of Amazon.
  • By using Amazon Attribution to tag your external marketing materials, you can connect clicks on those materials to resulting sales on Amazon, making you eligible for the bonus.

Key points to remember:

  • The program is currently available for U.S. sellers.
  • The bonus typically averages 10% of product sales driven by your external marketing efforts.

If you meet these criteria and are interested in participating, you can sign up for the Brand Referral Bonus Program through your Amazon Seller Central account. Remember, using Amazon Attribution is crucial for tracking and earning the bonus.

Qualification for the Amazon Brand Referral Bonus Program:

To qualify for the Amazon Brand Referral Bonus Program, you need to fulfill two main requirements:

1. Be a Brand Owner Registered with Amazon Brand Registry:

  • You must be the owner of the brand you’re selling on Amazon and have a registered trademark for it. Resellers and distributors are not eligible.
  • Enroll in the Amazon Brand Registry program. This unlocks access to the Brand Referral Bonus and other brand-building resources.

2. Use Amazon Attribution to Track External Traffic:

  • You must use Amazon Attribution to track and measure sales driven by your marketing efforts outside of Amazon. This includes paid advertising, social media posts, email campaigns, etc.
  • Create attribution tags in Amazon Attribution and attach them to your external marketing materials. These tags allow Amazon to track clicks and attribute resulting sales to you.

Remember, fulfilling these requirements sets you up for eligibility, but earning the bonus depends on driving actual sales through your tagged external marketing efforts.

5 steps to earn the Brand Referral Bonus on Amazon:

Amazon brand Referral Bonus


Here are 5 steps to earn the Brand Referral Bonus on Amazon:

1. Enroll in the Brand Referral Bonus Program:

  • Go to your Amazon Seller Central account and navigate to the Brands tab.
  • Click on Brand Referral Bonus.
  • If you’re eligible, you’ll see an Enroll Now button. Click it and complete the enrollment process.
  • Make sure you also provide your tax information as required.

2. Set up Amazon Attribution:

  • Access Amazon Attribution through your Seller Central account.
  • Create attribution tags for your different marketing campaigns and channels. These tags help track clicks and identify sales driven by your external efforts.
  • Attach these tags to your ads, social media posts, email marketing materials, etc.

3. Run Effective Off-Platform Marketing Campaigns:

  • Utilize various marketing channels like social media, search engine ads, influencer marketing, email marketing, etc. to reach your target audience outside of Amazon.
  • Communicate your brand message and product offerings in your campaigns.
  • Encourage clicks and engagement with your marketing materials that have the attribution tags attached.

4. Monitor Performance and Optimize Campaigns:

  • Track your campaign performance in Amazon Attribution. Analyze click-through rates, conversion rates, and sales attributed to each campaign.
  • Identify what’s working and what’s not. Optimize your campaigns based on the data to improve click-through rates and drive more sales.
  • Remember, the more sales you generate through your tagged marketing efforts, the higher your Brand Referral Bonus will be.

5. Track and Claim Your Bonus:

  • Amazon Attribution reports will show you the sales attributed to your tagged marketing campaigns.
  • You can claim your Brand Referral Bonus once the bonus period ends (usually 30 days).
  • The bonus amount is typically calculated as a percentage (around 10%) of the attributed sales revenue.

Bonus Tip:

  • Regularly review the Brand Referral Bonus program guidelines and updates to ensure you’re complying with all the terms and conditions.

By following these steps and actively promoting your brand outside of Amazon, you can increase your chances of earning a significant Brand Referral Bonus and boosting your overall sales on the platform.

How to Reduce Amazon Fee?

There are several ways to reduce Amazon fees, depending on the type of fees you’re looking to minimize:

Seller Fees:

  • Choose the right selling plan: Opt for an Individual plan if you sell less than 40 items per month, as it has a per-item fee but no monthly subscription. For higher volume sellers, a Professional plan with a monthly subscription fee but lower per-item fees might be more cost-effective.
  • Reduce referral fees: Negotiate lower referral fees with Amazon if you’re a high-volume seller with good sales performance.
  • Optimize your listings: High-quality product listings with accurate information and positive reviews can lead to higher conversion rates and potentially lower referral fees due to improved sales velocity.
  • Bundle products: Selling multiple items together as a bundle can reduce per-item fees and shipping costs.

FBA Fees:

  • Optimize product dimensions and weight: Choose smaller and lighter packaging to minimize storage fees and fulfillment fees based on size and weight.
  • Manage your inventory: Avoid overstocking to reduce long-term storage fees. Analyze sales data and remove slow-moving inventory regularly.
  • Use removal orders: If you need to remove unsold inventory from Amazon’s warehouses, consider using removal orders instead of disposal orders to potentially sell the items elsewhere and avoid disposal fees.
  • Fulfill smaller orders yourself: For very small or lightweight items, consider fulfilling them yourself using Seller Fulfilled Prime (SFP) instead of FBA to avoid FBA fees.

Additional Strategies:

  • Negotiate lower fees: While not always possible, you can attempt to negotiate lower fees with Amazon if you have a strong sales history and a good relationship with the platform.
  • Use third-party fulfillment services: Explore alternative fulfillment options outside of Amazon FBA that might offer more competitive fees or better fit your specific needs.
  • Increase profitability: Ultimately, reducing fees is most effective when combined with strategies to increase your overall profitability. Focus on improving your product margins, optimizing your pricing, and running effective marketing campaigns.

Remember, there’s no one-size-fits-all approach to reducing Amazon fees. Analyze your specific situation, consider the different fee types and their impact on your business, and implement a combination of strategies that best suit your needs and product categories.

Conclusion

In conclusion, the Amazon Brand Referral Bonus is best for Amazon sellers seeking to maximize profits and reduce fees. It’s not just about selling; it’s about earning rewards for steering traffic to your listings. External traffic holds immense power, offering advantages beyond Amazon’s borders, from boosting rankings to cultivating a loyal customer base. 

This comprehensive guide equips sellers with strategies for the bonus program, minimizes FBA fees, and propels profits. Equipped with these discernments, vendors can with assurance refine their strategy, cutting costs and clearing the path for long-term expansion and prosperity in the cutthroat Amazon market.

FAQs
Can individual sellers participate in the Brand Referral Bonus Program? 

Individual sellers enrolled in Amazon’s Brand Registry program can indeed participate in the Brand Referral Bonus Program, provided they have a registered brand or trademark associated with their Amazon seller account. This exclusive opportunity isn’t just reserved for larger entities; it’s a chance for individual sellers to leverage their brand identity. 

Is there a limit to the number of referrals a seller can generate?

 There’s no set limit to the number of referrals a seller can generate. However, the bonus or commission earned may vary based on Amazon’s policies and the specific products.

 How frequently are referral bonuses paid out to sellers? 

Referral bonuses for the Amazon Brand Referral Bonus Program are typically paid out according to Amazon’s regular payment cycles. The exact frequency aligns with the seller’s payment method and schedule established within Amazon’s payment procedures.

Are there specific guidelines for promoting products outside of Amazon? 

Amazon does have guidelines regarding the promotion of products outside their platform. Sellers should adhere to these guidelines to ensure compliance.

Can participating in the Brand Referral Bonus Program affect a seller’s Buy Box eligibility?

Participating in the Brand Referral Bonus Program does not directly impact a seller’s eligibility for the Buy Box on Amazon. The Buy Box eligibility is determined by various performance metrics, such as seller ratings, shipping times, price competitiveness, and customer service quality.




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