How Does the New Amazon Brand Referral Bonus Program Work?

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Amazon launched a new Brand Referral Bonus Program on July 15, 2021. This program aims to help sellers accelerate growth from referral traffic. For now, it is exclusively available to sellers who own a brand and are enrolled in Brand Registry.

Registered sellers will be able to profit from promotions outside of Amazon and make money from sales too.

In this article, we’ll tell you everything you need to know about the program; so, stay tuned!

Inside Amazon’s Brand Referral Program

Amazon sellers can use the Brand Referral Bonus program as a tool to make money through non-Amazon marketing campaigns. Brands only need to drive traffic to Amazon’s platform and they get a monetary bonus for it.

Basically, members of the program can get a 10% bonus on average from any sale outside of Amazon.

Registered sellers receive the bonus as a credit for a brand’s referral fee. A referral fee is the percentage that Amazon charges for every sale carried out on their website.

The actual price will depend on the category, but it usually ranges between 8% and 15%.

As an incentive, Amazon is offering the same bonus for purchases from your product catalog even 14 days after that customer clicked on the ad.

If you’re a seller that does not own a brand, you can join Amazon Associates. This also works for monetizing marketing campaigns outside Amazon that drive traffic to their marketplace.


Why Join the Brand Referral Program?

According to Feedvisor, out of 1,000 U.S. brands, 88% of brands are using some sort of advertising program in Amazon, which is an increase of 21% compared to 2020. This shows that brands are seeing success in combining their marketing campaigns with Amazon advertising strategies.

The Brand Referral Bonus Program does represent a great opportunity to drive sales and promote your brand. Registered members will definitely see boost in sales, at the same time that their non-Amazon marketing efforts pay off.

It’s all about taking advantage of the initiative.

The cost of advertising within Amazon should be enough for sellers to always consider driving traffic from campaigns outside of Amazon, so the strategy by itself is worth the try. The Brand Referral Program is an opportunity to make money out of a convenient strategy from brand owners. It’s a win-win situation.

If you are a seller and you haven’t considered Amazon advertising as part of your strategy, this is a great chance to try it out and start scaling your brand further. You can test the waters by experimenting with Facebook, Instagram, YouTube, and TikTok.


Brand Referral Program | Other factors to consider

Rising Ecommerce Competition

It’s also worth considering the whole picture when it comes to ecommerce.

Shopify, Target, Walmart and eBay have continued to grow in online sales and the trend doesn’t seem to stop anytime soon. Google and Facebook have both announced new integrations.

Sellers need to be smart about their marketing efforts in order to drive sellers to their brand and products through different channels.

Amazon’s Huge Client Base

Truth is Amazon continues to hold a big chunk of the U.S. ecommerce buyers. Amazon has been able to build a reputation to get users to buy, but usually is not in the marketplace where clients engage with a brand. The program could be a way for users to buy from Amazon and engage with your brand elsewhere.

Additional Benefits

  • Make your marketing efforts more efficient and accelerate your growth by driving traffic from advertising campaigns outside Amazon.
  • Get bonuses for an average of 10% from the sales driven from outside traffic to Amazon.
  • Get the chance to receive the same bonus for sales of additional products for 14 days after shoppers first click on the ad.
  • The bonus varies, so some products get better benefits than others.
  • For example, there is a drop to 5% from 7.14% in the referral fee for consumer electronics and a maximum of 30% on offer for Amazon device accessories, which have a referral fee of 45.9%. So, you can get more than the average 10%, think about the products you sell.

What’s In It for Amazon?

It’s already clear that it’s a program that benefits registered brand owners, since they can take advantage of reducing the cost of referral fees.

This way, brands can rethink their advertising budget and focus on campaigns that will drive traffic to Amazon instead of advertising there.

So, what does Amazon get in return?

In itself, the initiative is thought to get ahead of the growing competition. It will promote a new way to influence the way in which brands direct their paid media traffic.

Therefore, by giving an incentive to brands so they can focus their advertising efforts on directing traffic to Amazon and purchase from there, Amazon gets a boost in traffic and get to have better organic search placements for products.

The Downside

There are sellers out there that are skeptical of the program.

While it’s true that Amazon has a tremendous scope, which can make selling a little easier, the program is likely to further help Amazon keep its dominance in ecommerce.

Other brand owners are also aware that there’s the possibility that the program won’t offer the same percentage in the future once Amazon starts seeing the drive from outside channels increase.

Final Thoughts

Amazon’s Brand Referral Bonus program offers an exciting opportunity for brands that have listings on their platforms. Brands can reduce their referral fees with this powerful tool, but they can also redirect customers to their product listings.

With the program, it is likely that brands will continue to direct more traffic from channels outside of Amazon.

That means that more and more sellers will consider this initiative as part of their overall marketing strategy both on and off Amazon.

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