Nowadays, e-commerce plays an increasingly important role in retail. Online stores try to use various marketing tools and strategies to attract customers and increase their profits. One of the effective ways of promotion is a partnership program, i.e. an affiliate system . In this article you will learn what an e-commerce affiliate program is, what its benefits are and how to implement it effectively.
What is an affiliate system for e-commerce?
The affiliate system, also called affiliate marketing, is a form of promotion in which an online store cooperates with publishers such as bloggers, influencers or thematic websites. The aim of this cooperation is to generate effects, i.e. an increase in sales for the online store and earnings for the publisher. The online store pays the publisher a commission for each transaction that was completed thanks to his recommendation. The affiliate program is based on affiliate links that publishers place on their websites and which lead to the online store.
How does the affiliate program work?
The affiliate program is based on three basic entities: the advertiser (online store), the publisher (e.g. blogger) and the affiliate network. The affiliate network provides technology and tools that enable cooperation between the advertiser and the publisher. It is the affiliate network that tracks transactions and, on this basis, makes commission payments.
An advertiser is an online store that wants to promote its products and increase sales. The publisher, on the other hand, has an information channel where he can post information about the advertiser's products. The publisher may be a blogger, influencer, the owner of a thematic website or a social media user. The user, i.e. the potential customer, goes to the online store after clicking on the affiliate link, makes a purchase there, and the publisher receives a commission for this transaction.
Benefits of the affiliate program
An e-commerce affiliate system has many benefits for both the advertiser and the publisher. For an advertiser, it is an effective promotional tool that allows you to increase sales and reach new customers. The online store pays commission only for actual transactions, which minimizes the risk associated with investing in advertising. In addition, the affiliate program allows the advertiser to reach different target groups through different publishers.
For a publisher, an affiliate program is an opportunity to earn money by promoting products or services that are consistent with its topic or interests. The publisher receives a commission for each transaction that was completed thanks to his recommendation. The affiliate program gives publishers the flexibility to choose products to promote and place affiliate links on their sites.
Settlement models in the affiliate program
There are several billing models in the affiliate program that can be chosen depending on the advertiser's goals and publisher preferences. The most popular settlement model is CPS (Cost Per Sale), i.e. the cost per completed transaction. The advertiser pays the publisher's commission only when the customer makes a purchase in the online store and does not return the goods within a specified time.
Another settlement model is CPL (Cost Per Lead), i.e. the cost per lead acquired. In this model, the publisher receives a commission for performing some action, for example subscribing to a newsletter, completing a survey or registering on the website. The CPL model is often used in affiliate programs that do not sell physical products, but services.
How to effectively implement an affiliate program?
For an affiliate program in an online store to be effective, it is worth following a few rules. First, you need to choose the right affiliate network that will provide tools and technical support. The affiliate network should be reliable and well integrated with the online store platform. You should also select appropriate publishers who are related to the store's topic and can reach the appropriate group of customers.
The next step is to build a network of publishers in the affiliate program. The advertiser should actively search for potential publishers, establish contact with them and encourage cooperation. It is also good to offer attractive commissions and special promotions that will attract publishers to the affiliate program.
An important element of an effective affiliate program is monitoring and analyzing results. The advertiser should regularly check what transactions publishers generate and what commission costs are. Based on this data, you can adjust your strategy and optimize your affiliate program.
Examples of affiliate programs from the West
In Western countries, affiliate programs are widely used and bring excellent results. One example is the affiliate program of Michael Hyatt, who is a famous blogger and author of books on personal development. Hyatt offers its publishers attractive commissions and marketing support. Thanks to this affiliate program, Hyatt gains new customers and increases its income.
Another example are price comparison websites around the world that have extensive affiliate programs. Thanks to the fact that comparison sites present various offers of online stores, publishers can generate commissions for each transaction that was made thanks to their affiliate links. This model of cooperation is beneficial for both comparison sites and online stores.