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Importance Of E-commerce Affiliate Marketing

What do you mean by E-commerce Affiliate Marketing?
E-commerce affiliate marketing is performance-based marketing, where the revenue is shared between the online advertiser and online publisher. It is based on the sales, clicks, registrations. The affiliate website displays his ad on the merchant website .The advertisers are termed as affiliate merchants and the publisher are termed as affiliates. In other words the affiliates get a chance to promote your product online, and get an opportunity to earn commission by sending the customer to visit your website.
E-commerce affiliate marketing helps the merchants to expand their market reach. It has contributed a lot in increase of sales of leading online companies.

• The main reason why E-commerce affiliate marketing is beneficial because you pay to the affiliate only for the performance. You do not have to pay for unqualified visitors.
• Affiliate marketing helps to increase the sales of the merchant in a least expensive way.
• The merchant gets the benefit to earn 24 hours, 7 days a week as the customers visit your site and purchase the products according to their convenience without any time restriction unlike other offline marketing. Therefore by displaying ad in your affiliate website you get instant customers.
• Little or no investment is required in affiliate partnership.
• Affiliate marketing is profitable to both advertiser as well as the publisher.
• The cost of advertising is also less as compared to other ecommerce online marketing strategies.
• It rapidly increases trafficking to your website.
• The merchant or the advertiser gets extra attention by the customers due to the affiliates.

Two main models of affiliate marketing:
Cost per sale: It is the amount the advertiser pays to the publisher agreed upon on the basis of sale. It is also termed as revenue share or Pay per sale.
Cost per acquisition: The payment is based on the action such as sales or registration. The publisher receives the payment only if the action is completed by the customer. It is also termed as Cost per action or lead generation.

Therefore, right approach will help both the advertiser and the publisher to earn more revenues or profits and it can be done only by helping each other with the marketing process. You may get lot of competitors so, you have to follow your online marketing strategy well. It is also important to follow some safety measures to avoid fraudulent leads or affiliates.

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