The Importance of low Commission Amazon Products
The Importance of low Commission Amazon Products is often ignored. When seeking products to promote, we tend to go for products that are higher priced. We want to know that If we get a sale, the 4% starting commission will amount to something tangible.
The problem is almost everyone is thinking the same thing. Who wants to waste time building a website for days just to get a $0.30 commission? I do, and this is why.
Amazon pays its associates a base commission of 4%; however this increases to 6% after you refer 7 items. This increases in volume as you can see from the table below, provided by Amazon.
Now it does not matter what the price of the product is, the commission rate is only dependent on volume. The more products sold, the more commission you can make on all products. If in a month the first 7 products you sell are cheap and then another website of yours sells an expensive product, you will receive the larger 6% commission on the expensive product. This goes for every product after that, up to 30 products, and so on (see Table above).
That is why it is wise to spend the time promoting low commission Amazon products. Less people will be promoting the items, resulting in low competition. Low competition means it is easy for you to rank the product keywords that can eventually result in sales. More sales of cheap products means more commission on all future products sold for the month.
My first Wealthy Affiliate website, currently a work-in-progress, is one such low commission product site. You may take a look at it at Jamaican Castor Oil. I would be happy if you would leave a comment. Thank you and God Bless.
Recent Comments
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Very interesting. Thank you for this article. I would have ruled out Amazon.com books completely due to the low commission structure.
I was of the more is better philosophy... you have changed my mind on this thinking and I thank you for that Brian...I would be immensely grateful if you would look at my site: http://howtoearnincomeonline.com and suggest how I might target low commission Amazon products on there!
Thanks for sharing this most excellent idea.
Thank you very much, you are right. I have not thought about that, and as the mayority I always thought on promoting the most expensive articles. Thank you for the advise.
I have always thought this way. Volume. People are quicker to spend a couple of euro as apposed to hundreds and as you say its down to traffic again. I would rather have thirty cents than no cents lol eevery cent adds up. Cheers
Thanks for the good advice. I never really thought much about it that way but you are right. Thing is everybody usually advises you to promote the higher priced items so commissions are bigger. But if volume is what counts your strategy can pay off in the long run.
Good article and this is similar to the Wal-Mart approach. Keep prices low and sell volume!
Thanks Brian. It works all the time. It may not be a profitable approach in the short-run, but it pays off over the long term. :)
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Thank you very much for this info. I am doing the same thing, trying to anyway. My checkout button that goes to the Amazon website, is not working. I am using WooCommerce and Woozone. Do you have any idea ? The url mentioned above doesn't work. I would like to take a look at your website.
I can't speak to woo commerce or woozone, but try looking at this. Ot was what showed me how to get my Amazons links to work.
Amazon Links| Adding and Editing Your Amazon Links