As an Amazon Associate, I earn from qualifying purchases
Amazon has become the biggest online retailer worldwide. It is now the go-to shopping choice for most people in the United States and Canada and other countries are catching on as well. With the introduction of Amazon Prime speed shipping, the use of Amazon as the go-to online store looks set to grow.
You can set up and Amazon affiliate business where you ride on the popularity and goodwill that Amazon has built over its many years of existence. It’s not uncommon for Amazon affiliate businesses to earn anywhere from a few hundreds of dollars per month to tens of thousands of dollars.
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Amazon Affiliate Business – How Exactly Does it Work?
So how exactly does this work? Well, you need to have some kind of online property that you control and then need to apply to the Amazon affiliate program known as Amazon Associates. You don’t necessarily need to have a website for them to accept you but you will need an online presence.
The easiest way to do this is to set up a simple YouTube channel and use that as your online property. I will get a little more in-depth on this as we progress through the article.
What is Amazon?
Amazon is the biggest online retailer. It started off as an online book retailer with an aim to become the world’s largest book shop. They have since knocked off Barnes and Noble as well as other book retailers from their perch.
They have since morphed into the biggest general store on the web offering just about everything you could think of. They have managed to build a huge brand which made its founder Jeff Bezos, the richest man in the world.
People trust Amazon and the Amazon affiliate business model rides on this trust.
Robert Kiyosaki in one of his books said that most people who become rich have taken advantage of existing platforms to build successful businesses. Bill Gates used the platform of the IBM PC.
Google, YouTube, Facebook and other online companies ride on the internet. The companies I just mentioned have also become big platforms upon which business have been and are still being built. Facebook Pages have made and continue to make fortunes
Google has given rise to countless businesses taking advantage of it to make fortunes. I’m sure you get the idea. Amazon provides you with the same opportunity. They provide the product and customer service.
All you need to do is direct the traffic to Amazon and you will be paid a commission when the person you direct buys a single or multiple items within a 24-hour period. I will get into the technical side of that later on.
Amazon is a trusted name in the e-commerce world and once a customer is directed to Amazon, they generally rest easy and are more willing to buy.
This is in sharp contrast to trying to build an eCommerce store where you are an unknown brand. People are more reluctant to buy in these circumstances because they don’t know you and aren’t sure if they will even get their product after buying it from you.
What is Amazon Associates?
Amazon Associates is the affiliate program that Amazon offers you. When you sign up and they accept you, you will then be able to generate an affiliate link that you can share to any online property that you control.
When someone clicks on that link and goes to Amazon, a tracking cookie is generated. If the person goes on to buy anything on Amazon within a 24hr period, you get paid a commission based on the Amazon Associates commission structure.
Amazon Affiliate Requirements
In order to join Amazon Associates, you need to have some form of web presence. This can be a website or a YouTube channel. This answers the question for those who may be asking whether you need a website to sign up for Amazon Associates. You can read the article:
Amazon Affiliate Commissions Rate
The commissions that Amazon Associates offers range from 0.2% for items like gold and silver coins all the way up to 10% for Kindle Devices and e-books. The image below shows part of that commission structure. You can check out the full Amazon Associates commission structure here.
Though books and e-books pay you a high percentage, you will be getting 10% of a low-priced product meaning that you’ll need to make a lot of sales to make sufficient income. A good guiding principle is to promote products that are $150 or more. They give you a much better return.
Amazon Affiliate Earnings
How much do Amazon affiliates earn on average? Amazon niche sites, for example, earn around $500 to $10 000 or more per month. There are cases where people earn multiple 5 figures into even six figures.
In order to reach these figures, you will need to generate large amounts of content like 100 or more articles and add more content to this over time to keep your income growing.
Amazon Affiliate Business Model – Steps to Building an Amazon Niche Site
I am going to share with you a simplified process which you can use to start earning money through an Amazon affiliate site.
Pick a Niche
The first step you need to take is to pick a niche. This could be electrical appliances, gardening equipment, woodworking, baking or any other topics out there. When you are picking a niche, make sure that it has at least a few products selling on Amazon.
In other words, the niche you choose has to be in a buyers’ market. Your ultimate goal is for your site to make money so you need to make sure that you can make money right from the start otherwise you will waste a lot of time and effort on something which will not perform well.
Do Product Research
This is tied into niche research. Look for products that are in your niche and actually selling on Amazon. This is one of the most important steps in this process and you will need to do your due diligence and make sure that you get this part right.
Look for products that are selling well and one or 2 products that are high priced. Lower priced products tend to sell more but high-priced ones pay more. You can make up the sale of 20 low-cost items with just one high-value product.
Do Keyword Research
Your next step is to research low competition keywords in my niche. I usually don’t worry about search volume as I have discovered that most keyword tools don’t get this figure right most times. Get a list of at least 10 low competition keywords to start off your process then gradually grow this list as you add more content to your site.
I like to use Wordtracker because of its simplicity, speed and accuracy when it comes to finding long-tail, low competition keywords.
Next up, you need to buy website hosting. If you use Bluehost, they will also give you a free domain when you sign up for at least 1 year. [eafl id=”96″ name=”BlueHost” text=”Bluehost”] are one of the best web hosting companies out there and they have proved themselves over the years.
Set Up WordPress
When you buy Bluehost Hosting , they will also automatically add a WordPress installation.
Buy a Theme
Next up, buy a relevant WordPress theme. The right theme will make life really easy for you as you don’t have to do a lot of customisation work on the site.
Write Your Content
Next step is to write content. Your articles need to be in the 600 to 1000-word range for most articles and up to 1500 words for top item review lists.
With Google’s recent algorithm updates, it would seem as if backlinks don’t hold as much value as they did before but are still very relevant. You need to be careful to not do this in a way that will cause you to be penalised like sharing to quick and too soon.
Do it regularly over a prolonged period and you should be fine.
Create More Content
Once you have your first 10 articles posted, repeat the process and post some more. When you do your keyword properly and target low competition keywords, your traffic will gradually build up over time. In other words, more content, more traffic which, if you’ve done your niche and product research well, means more money.
Amazon Affiliate Sites – Are They Still a Good Idea?
As I write this article, it is January 2020 and during the course of 2019, Amazon cut their affiliate commissions by as much as half meaning a lot of websites has their income halved. Does this mean then that Amazon niche sites are dead?
I don’t believe so. I believe just like anything else in life really, they have evolved. They are still a great way of earning a full-time income online. What you might want to do though is look for other ways to monetize your site like ad revenue or digital products in order to diversify your earnings.
Let me hear your thoughts and comments on this article in the comments section below.
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