How to skyrocket your E-commerce sales with the secret weapon of affiliate marketing
Insights
April 4, 2023
Anna Shevchenko
Affiliate marketing has been on the rise in recent years and shows no signs of slowing down. In fact, according to a recent report, global affiliate marketing spending reached $8.2 billion in 2022, and its market value is projected to reach $17 billion in 2023. Let’s explore the world of affiliate marketing in 2023, including its benefits, challenges, and future trends.
Affiliate marketing is a reward-based system that encourages partners to promote your products in exchange for a commission.
Affiliates are individuals or companies that promote the products or services of a business through their website, blog, social media platforms, email marketing campaigns, and other channels. In return, affiliates earn a commission on each sale made through their unique referral link.
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Even though Affiliate marketing seems to require a bit of effort, it offers numerous benefits for E-commerce businesses such as:
- Increased Brand Exposure: Affiliate marketing allows businesses to reach a new audience by partnering with companies and influencers from different niches and different levels. By leveraging the networks of their affiliates, businesses can increase their brand exposure and awareness.
- Cost-Effective Marketing: Affiliate marketing is a cost-effective marketing strategy as it doesn't require typical marketing expenditures. Instead, you only pay a commission once a sale is made. This helps businesses save money on advertising costs.
- Easy to Manage: Affiliate marketing is easy to manage. Software such as Shoffi can help you handle your affiliate program and provide affiliates with all the necessary tips and tracking details.
Despite its numerous benefits, affiliate marketing still has some challenges for business owners to face. Let’s take a look:
- Quality Affiliates: When launching an affiliate program, you should focus on approaching quality affiliates to make sure the affiliate program will bring value and cover business needs. Before accepting an affiliate, ensure that they are reputable, trustworthy, and have a strong online presence.
- Fraudulent Activity: Affiliate marketing is susceptible to fraudulent activity, such as fake clicks or fake leads. This can result in businesses paying out commission for invalid leads or clicks. Before approving fee withdrawals, make sure all leads are real and made by active users. Choose a strategy to apply a commission only after the lead makes a payment for your product or service.
- Commission Rates: Determining the right commission rate can be a challenge for your business. Commission rates that are too low may not attract quality affiliates, while rates that are too high can eat into profit margins.
That’s why before starting with affiliate marketing, we recommend analyzing if it works for your niche. Start with checking your competitors to see if they have any ongoing affiliate programs. If the result is positive, look through your product line and define which products can be applied to the affiliate program. Keep in mind that your commission fee shouldn’t be too low to attract reliable affiliates. A good start is to put a fee between 10-30% based on the product value. If you have a wide range of products, opt for those with a higher price so that both your business and an affiliate can benefit from the deal.
As we move into 2023, here are several trends in affiliate marketing that E-commerce businesses should be aware of:
- Micro-influencer marketing: While affiliate programs are quite popular among big influencers, it might be a wise strategy to start with micro-influencers who have smaller but loyal audiences. When launching your affiliate program, you might start with offering a modest commission. In this way, micro-influencers would be a great starting point to promote your products or services.
- Personalization: Personalization is becoming increasingly important in affiliate marketing. Businesses are tailoring their marketing messages and promotions to specific audiences, based on their preferences and behaviors.
- Tip: think of multiple marketing materials/messages and hints you can provide your affiliates to approach different audiences.
- Mobile Optimization: With more and more consumers using their mobile devices to browse and make purchases, mobile optimization is critical for affiliate marketing success. Businesses need to ensure that their websites and marketing materials are optimized for mobile devices.
Affiliate marketing is a powerful marketing strategy that offers numerous benefits for businesses. Despite its challenges, affiliate marketing is expected to continue to grow in popularity in 2023 and beyond. By staying on top of the latest trends and best practices, businesses can leverage affiliate marketing to increase their brand exposure, expand their reach, and generate more sales.
Zapiet, a leading delivery and order management tool, has recently jumped into affiliate marketing and we’d love to introduce how our affiliate program works.
The Affiliate Program by Zapiet is a reward-based system that allows Shopify partners and App Developers to earn a commission by referring new customers to Zapiet. In essence, affiliates help spread the word about Zapiet to their network of contacts in exchange for a 10% commission generated from those referrals once the plan is purchased.
Our Affiliate Program is straightforward to understand. Here is how it works:
- Sign up: If you are a Shopify Partner or an App Developer working with Shopify merchants, you can sign up for our Affiliate Program through the website. Once approved, you will get access to the affiliate dashboard where you can find a unique referral link to share with your network.
- Promote: Affiliates can promote Zapiet – Pickup + Delivery, Zapiet – Rates by Distance and Zapiet – Rates by Zip Code through their website, blog, social media platforms, email marketing campaigns, and other channels. If you aren't sure about what to say to best describe one of our apps, you can contact our team to get advice and marketing materials.
- For example, we offer a 14-day free trial for our apps so that merchants can try them out to see if one of our apps meets their needs.
- Refer: When a customer clicks on your unique referral link and installs the app, you earn a commission on that sale. Please note that you’ll get your first commission after the free trial is over and the merchant starts paying for their chosen plan. The commission rate is 10% of a plan price, and Zapiet pays out commissions once you reach a minimum withdrawal amount of $50.
- Track: Zapiet provides affiliates with access to a dashboard that allows you to track your referrals, commissions, and payouts in real time.
Our Affiliate Program benefits both affiliates and Zapiet itself. Here are some of the advantages:
- Increased Brand Exposure: As an affiliate, your role is to promote Zapiet to your network of contacts. Meanwhile, Shopify merchants who wish to install Zapiet's apps need an agency's assistance to handle the installation process. By partnering with Zapiet, you can earn a fee for generating active leads and gain exposure by being featured as a Zapiet Partner. This can help you attract more clients and grow your business.
- Cost-Effective Marketing: The Zapiet Affiliate Program is a cost-effective way for Shopify Partners and App Developers to market our products alongside their services.
- Get paid for active leads: by bringing new merchants you not only help Zapiet expand its reach but get a 10% commission for every active lead brought.
- Easy to Manage: The Zapiet Affiliate Program is easy to manage, with the company providing affiliates with all the necessary details and tracking tools.
The Affiliate Program by Zapiet is a win-win for both affiliates and the company itself. Affiliates have the opportunity to earn a commission by promoting Zapiet’s apps to their network of contacts, while the company benefits from increased brand exposure and expanded reach. If you’re interested in becoming a Zapiet affiliate, sign up on our website now!
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