How to Increase Your eCommerce’s Revenue with Affiliate Marketing
Reaching new customers and getting your products into more hands can be tough.
If your sales have dropped or you’ve hit a plateau, one way to grow your eCommerce store is with an affiliate program.
This is when you partner with other affiliates and pay commissions based on sales they make for your business.
Affiliate programs can cost less than other advertising platforms, making them a cost-effective way to increase your sales.
Here we put together some tips to help you make the most of this strategy.
Before we do, let’s take a look at what affiliate marketing is and how it benefits your business.
Affiliate marketing is based on a relationship between merchants and publishers.
Merchants are the businesses that have products to sell. As an eCommerce store owner, you would be the merchant.
Then we have affiliates or influencers, also called publishers, who work with merchants and promote their products on their own site or publishing platform. Affiliates earn a commission when they refer someone who makes a purchase.
For example, affiliates can promote your products on their site or share their thoughts, like this review of Credit Saint.
Affiliate marketing is beneficial for both parties — merchants can increase their reach and generate more sales, while affiliates can make money on referrals they make.
If you’re not already using affiliate marketing, you’re missing out on opportunities to grow your eCommerce store. Affiliate marketing can help your business:
- Lower advertising costs: Affiliate marketing has relatively lower costs than other advertising channels. You don’t have to spend a lot of money to set up an affiliate program.
- Raise brand awareness: Reaching your target audience can be difficult if your eCommerce store is still new. Affiliates do most of the heavy lifting for you, which allows you to reach wider audiences.
- Improve your reputation: Consumers trust product recommendations from friends and family. Working with credible publishers can help lend more credibility to your brand and build consumer confidence.
With all these benefits, it’s no surprise that more companies are turning to affiliate marketing to grow their brands. In fact, affiliate marketing spending is projected to reach $8.2 billion dollars by 2022.