In the world of affiliate marketing, Amazon is a household name. It has been around almost as long as eBay and has built a reputation as a trustworthy site to buy and sell products. But is Amazon really a trustworthy place to buy products from? Let’s take a look at their system of pricing and their process of selecting affiliates.
Pricing the products they sell can be one of the biggest risks or rewards of your online business. If you buy too cheap, you won’t make many sales. On the other hand, if you buy too expensive you may not be able to earn much profit.
The method by which Amazon determines their selling price is called “cost per sale” or CPS. The actual number they give you is an average of many different factors. It includes your placement in the order queue, how many units you buy from Amazon when you are invited to do so, what your location is, and how much you spend on other costs, such as postage. Amazon’s best guess is how much you are likely to sell. Because they use so many factors to come up with this average, they are probably guessing incorrectly most of the time.
Amazon’s CPS is in part a function of how many people you refer to Amazon when they are trying to sell one of their items. Referrals drive sales. But what if you don’t refer enough people to Amazon to make it profitable?
In this instance, you’ll need to increase your referrals. Referrals are the lifeblood of your business, after all. The key is to find other ways to increase your cost per sale ratio (CPS). You can do this by finding great low cost items to sell that your customers might be interested in buying, packaging them, and selling them on Amazon for CPS.
For example, let’s say that you want to sell a camera on Amazon. That’s a fair price, and most people will be interested in buying one. You could target buyers in your location, who may be searching for cell phones or tablets. Or you could look for individuals looking for laptop computers. There are thousands of items that fall into these categories. All you need to do is research the items that have a high demand and find other sellers who are willing to sell them on Amazon for a little less.
Amazon offers several tools that can help you determine the cost per sale ratio for an item. You can enter the product name, the category it falls under, and the unit price. It’s easy to see the total cost, in dollars, for each item. And you’ll get additional information, such as the unit price and average sale price on Amazon. This data is helpful for many businesses, from affiliates to large companies.
When choosing which items to sell on Amazon, it’s important to think about the customers in your area and the types of products they’re searching for. It may also be helpful to do some research to see how well-known the seller is, whether it’s for lower prices or for higher-end, popular products. Amazon Sponsored products provide an easy way to start a successful business selling products on this huge shopping website, for very little overhead or effort.
Start by signing up for an account at Amazon, and browsing the marketplace. Look for the hottest selling items, along with those that are currently popular. Amazon has tools that will show you how to effectively search for these products, as well as tools to help you determine their popularity. After you’ve identified high-selling items, you can get in touch with the seller directly. Many sellers offer an easy, one-step online payment solution, so you won’t have any problems getting started.
You can sell any product on Amazon that you choose, as long as you meet the seller’s minimum order requirements. For example, if you want to sell ten pounds of shampoo, just enter a price of ten pounds. Amazon Sponsored listings include all sorts of products, from books to cars to baby items. No matter what you’re looking for, you can probably find something that will be successful on Amazon.
The bottom line is that there are many reasons why Amazon Sponsored products cost so much less than traditional products. Because they don’t need to pay a commission, they can pass the savings onto you. On top of this, because they don’t need to pay for the products, the quality is often better. If you sell a lot of high-ticket items on Amazon, you’ll soon find out that having an Amazon affiliate account will save you more money than you know.