Impact of affiliate marketing on Ecommerce



Affiliate marketing has had a significant impact on Ecommerce for various reasons, not least the simplicity of the concept. If you are running a commercial enterprise online one aspect you will always need to focus on is advertising. If you have affiliates marketing your products through their own websites, dedicating much of their time and resources towards promoting these items, then you have effectively set up a free advertising program.

There are many other ways in which affiliates performing a chunk of the work will have an impact. Markets, online or otherwise, will always be subject to the fluctuations of customer demand, market trends, and the overall dynamics of an ever-shifting world economy. If you are running an Ecommerce enterprise it would beneficial to have affiliates on-board who can set up autonomous income revenue streams. As well as providing you with a free shop window into your business, you will be better placed to navigate the ebbs and flows of alterations in what customers are looking for or are prepared to pay for something if these are areas will be flagged up by your affiliates. Even better, they can react to sudden spikes or dips in trading on the ground.

The programs you can offer (and there can be as many of these as you consider practical) will ensure you keep offering a portal into your Ecommerce stream for sole traders. The reasons they will keep coming back are relatively straightforward. What they are doing is following a traditional business model in retail. Front line staff working independently of the company whose products they are dispensing are compelled to complete successful sales to generate commission. The person on the floor of any car salesroom or wherever has no responsibiity for advertising costs, or making upgrades to the products. When marketing is out-sourced in this way, the costs to the company are lowered significantly. Another names for this tried-and-tested enterprise model is ‘earn as you sell,’ and it is an excellent example of a win-win situation for both parties involved.

In order to underline the impact you only have to consider the many platforms that have been set up allowing various players to pool resources and collaborate with affiliate marketing. Every affiliate running these programs will underline the cost issues. It is quite easy to actually set up any number of affiliate schemes because they come at little cost. The products have already been produced and are packaged and ready for shipment, so there are no stock overheads. The onus is on the host company to produce items there is a proven demand for. The affiliates are merely tapping into a revenue stream that has already been established. For the hosts, the key advantage is shearing marketing budgets.

In this win win scenario, the affiliates may be providing free advertising for retail companies and plugging into diverse product databases for an apparently easy way of generating commission, but they still have to do hard work. Few things in life come at no cost, and this is certainly the case with Ecommerce.

Top affiliate marketing site realise that, just like the salesperson in a showroom full of gleaming cars, their livelihood depends on selling as many units as they can. For the sole trader who has signed-up to affiliate programs, they must appreciate that the strength of their business model depends on their versatility with seeking out ideal products to affiliate to, and then maximising their activities by writing positive reviews and channeling custom via blogging. This final aspect, the ability of harnessing social media, is where affiliate marketing has been able to generate most impact.