Monday, 16 May 2011
Amazon Affiliates
Third-party sellers
Amazon derives about 40 percent of its sales from affiliate marketing called “Amazon Associates” and third-party sellers who sell products on Amazon]. Associates receive a commission for referring customers to Amazon by placing links on their websites to Amazon, if the referral results in a sale. Worldwide, Amazon has “over 900,000 members” in its affiliate programs. Amazon reported over 1.3 million sellers sold products through Amazon’s World Wide Web sites in 2007. Unlike eBay, Amazon sellers do not have to maintain separate payment accounts; all payments are handled by Amazon.Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. A new affiliate product, astore, allows Associates to embed a subset of Amazon products within, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched (rumored to be internally called “Project Genesis”) to provide more transparency to sellers by recommending specific products to third party sellers to sell on Amazon. Products suggested are based on customers’ browsing history.
A January 2010 survey of third-party sellers by Auctionbytes.com found that Amazon was 4th overall. amazon.com placed second in “Profitability”. Its lowest rating, but still above average, was in “Ease of Use”. Sellers felt Amazon had clearly defined rules, provided a steady stream of traffic to their listings, and put less emphasis on a community component. amazon.com came in second in the Recommended Selling Venue category.
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