It's 2023 and you still don't know that you can earn back Amazon's promotion fees?Full Analysis of Brand Drainage Reward Program
The small partners who do Amazon business have a deep understanding of the serious decline in profits caused by market saturation and high drainage costs in the past two years. Everyone wants to continue to attract and expand their business while maintaining the only profit, but it is very difficult. big. At the same time, Amazon officials are also very aware of this situation, but the appeal is consistent with that of Amazon sellers, and they all hope that the scale will become larger and larger. Therefore, on July 15 , 2021 , Amazon announced its new brand drainage reward plan. The purpose is to provide sellers with the opportunity to earn a 10% bonus from non-Amazon marketing activities, that is, to help sellers save a lot of off-site drainage costs. But how exactly do you get this bonus? A-Lu cross-border will take you to find out!
What is Amazon's Brand Acquisition Rewards Program and How Does It Work?
The Amazon Brand Referral Rewards Program provides an additional 10% sales reward for sales brought by off-site referrals for existing Amazon brand sellers. The brand's traffic must come from a third party other than Amazon. Once Amazon can confirm that shoppers are coming from other locations, this reward will apply to your entire branded product line.
How do Amazon brand sellers benefit from the program?
Offers an extra 10% bonus for creating off-site ads, giving you the chance to earn even more money. And, unlike the Amazon Affiliate Program’s commission rate, you’re not promoting someone else’s product.
For mature sellers, if you are already familiar with Facebook Ads, Google Ads, or other off-Amazon ads, this will not affect your strategy. Instead, you'll have a unique link that enables you to earn extra money for something you're already doing. New Amazon sellers need to get out of their comfort zone and incorporate third-party advertising into their traffic strategy.
Analysis of key points about the brand drainage reward plan
1. Who can join the brand promotion reward program?
All US Amazon brand sellers can join. There is currently no information on when this program will be available in other countries . Therefore, if you are not a US seller, unfortunately, you will not be able to participate.
2. Which sales are attributed to the rewards program?
Bonus applies to the sale of any branded product with an original attribution tag from a non-Amazon marketing source. It also includes other products purchased under the same brand within 14 days of clicking the ad.
3. What is an attribution tag?
Amazon Advertising has an attribution program called Attribution. This program is designed to help you optimize off-site advertising that is closely related to this program. The Attribution tab enables you to track standard metrics such as impressions, clicks, and conversions.
4. How do I know what my bonus is?
One way to get an idea of the reward amount is to use the Brand Referral Rewards report. Every Friday, Amazon's system will generate a report informing you of the bonus amount for the last 90 days. This estimated amount will include everything from last Friday to that day. If you have no eligible sales in the past 90 days, the report will not be generated.
5. Can you opt out of the bonus?
Yes, if you don't want to join the program, you can open a case to send a message and request to withdraw.
Calculating Bonus Rates for Brand Lead Rewards Program
While 10% is the standard percentage to receive a bonus, your rate will vary depending on the product and size of the sale, even going as high as a 30% bonus rate.
Advantages and disadvantages of the brand drainage reward program
Pro 1. Extra income
The cost of running an Amazon business is quite high. If you can find a way to make more money, why not do it? That money could take you from simply breaking even to having enough money to invest in new products. The ultimate goal of all businesses is to make money. So this is a step that can get you closer to your overall goal.
Pro 2. It encourages you to try more advertising methods
A big mistake most Amazon sellers make is sticking to what works. While this is a good general idea, it holds sellers back. Sticking to effective methods keeps you from taking any meaningful risks, sticking to the same process every month may mean little growth, and now that the cost of attracting traffic from a single channel is getting higher and higher, trying more forms of advertising is Opportunities that can solve all the above problems, of course, will have failures, but the courage to try and make mistakes is the source of business growth.
Pro 3. It encourages you to become a brand
Because only brand sellers are applicable to this program, it is very clear that Amazon encourages sellers to achieve their own brands, because Amazon understands that it is the brand that attracts people, and only by making people emotionally connected with the brand can they remember it and remember the product, so this is not only Just having a high-quality product is enough. The best way to become a brand is to continuously reach consumers through various channels, and this is where this solution fits well with brand building.
Pro 4. Better Trust
It's hard to admit, but people don't know your brand yet, and they won't trust your brand. Therefore, when people know that you are selling on Amazon, Amazon, a channel brand with a solid foundation, will endorse your brand, which undoubtedly increases the possibility of consumers buying your products.
Cons 1. Bonuses are vague
The table provided earlier clearly shows the income you may expect to receive. However, these rates are still conditional, or worded unilaterally by Amazon, which means you can’t hold Amazon responsible for any special bonuses. This phrasing suggests that bonuses are not a reliable source of income. Amazon may reasonably decide that you did not receive the bonus based on certain missing factors.
Con 2. You’re Paying to Advertise on Amazon
The second downside is that you are actually paying for Amazon ads. But as with any business, you have to spend money to make money, and this is no exception. While Amazon will pay you a bonus for the products you sell, your actual profit will also be reduced because Amazon will take some of your revenue as a commission, plus possibly FBA shipping fees, etc. It can feel out of control if you only receive bonuses for paying advertising costs to sites you don't control.
If you plan on taking some of your advertising budget to do the work, make sure you do one of two things:
a. These channels are relatively controllable.
b. The ROI of sales from these channels is in line with your expectations.
Con 3. You might be advertising a competitor’s product
Whenever you pay for product promotion and drainage, it is unrealistic to guarantee an additional conversion rate. The most realistic and direct purpose of promotion and drainage is to get more consumers to reach your product or brand page. But here’s the problem, and if you know anything about Amazon’s product pages, product pages also show recommendations for various other products that are essentially your competitors’ products.
The biggest problem here is that someone might choose your competitor's product over yours. This means that if someone has a more attractive description to meet the demand, you will likely spend money to get consumers to buy your competitor's products, especially when consumers' purchase intentions in off-site channels are relatively ambiguous. This is more likely to happen to attracted consumers, so ensuring the competitiveness of your products on any page is the top priority, otherwise it will greatly affect your return on investment in drainage.
Amazon Referral Bonus Program FAQs
1. Can members of the Amazon Affiliate Program benefit from the program?
Although there are some basic similarities between this and the Amazon Affiliate Program, the two have very little to do with each other. Instead, this tool only works with Amazon brands. This means that members of the Amazon Affiliate Program cannot take advantage of this rewards program. Instead, the bonus is limited to Amazon Brand Registry sellers.
2. Can resellers benefit from the program?
No, resellers cannot use this program to earn bonuses on non-branded merchandise.
3. Do you have to pay for advertising to get the bonus?
Not so, A-Lu cross-border thinks that the plan is aimed at drainage channels, that is, sales brought by non-Amazon channel drainage, so if you attract traffic through paid advertisements (Facebook or Google ads) or non-paid advertising channels (blogs, etc.) Receive program bonuses on all incoming sales.
A-Lu cross-border said that in the communication with the industry, it can still be found that although the Amazon brand drainage reward program has been launched for more than a year since last year, there are still many sellers who do not know about this program, or have never used it before. This plan. There are many subjective and objective reasons, but in general the program has really, really earned some cash bonuses for Amazon brand owners and helped improve the bottom line. These additional funds can help new brands launch projects faster and help old brands launch new products with more confidence. In addition, according to the actual test results of official personnel and seller partners, Amazon has a higher and higher weight on off-site traffic. The platform hopes that sellers will jointly carry out off-site drainage, and will carry out the weight of such off-site drainage listings . Addition increases its growth rate to promote brand sellers who can integrate on-site and off-site marketing to do better and better, so what are you waiting for, hurry up and use the brand drainage reward plan to squeeze Amazon's wool to quickly improve your business.