News & Insights
Amazon’s Brand Referral Bonus Program
The Details on Amazon’s Brand Referral Bonus Program
In a recent announcement, Amazon.com presented a new program, Brand Referral Bonus program, that provides third-party sellers with a bonus of approximately 10% of product sales if they can push converting traffic to their Amazon listings from non-Amazon marketing campaigns.Amazon’s intentions of the program are to assist sellers in satisfying customers through increasing their growth, saving money, and developing the effectiveness of their non-Amazon endeavors.Selfishly, Amazon will also benefit from sellers driving qualified traffic to their Marketplace platform. Amazon highlighted three benefits of the Brand Referral Bonus program:
- “Help accelerate your growth and improve the efficiency of your non-Amazon marketing and advertising campaigns that drive your referral traffic to Amazon.
- Save money by receiving bonuses that average 10 percent of sales from traffic you have driven to Amazon.
- Improve advertising efficiency by receiving the same bonus for customer purchases of additional products from your brand up to 14 days after they click the ad.”
As you accumulate more traffic, you will provide your brand with more opportunities to earn the bonus through the program, which is given to you as a credit on your referral fees.
We view this program as a positive for our clients and brands. Many brands already use off-Amazon advertising to drive traffic to Amazon when on-platform CPCs are high. This change will allow brands to lower the acquisition cost from off-Amazon advertising by effectively reducing the Amazon referral fee from 15% to 5% on ad-attributable sales.