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Why Should You Invest in Affiliate Marketing for Your eCommerce Business
Thursday, 20 May 2021

The advent of the internet has changed the way you shop. Today, shopping means sitting on the couch and browsing an eCommerce website or app for the desired product. This shopping mode is on route to make up 18.1% of total global retail sales in 2021. There are now about 2.14 Billion eCommerce consumers worldwide with no end to its growth.

When the marketplace is this crowded, getting your eCommerce brand's word out could be a real challenge. It requires a robust marketing strategy utilizing the best the internet has to offer as a marketing medium.

Affiliate marketing is one such creative way to bring an audience to your site. by reaching out to select influencers, you can draw their crowd to your site, increasing visibility and brand value exponentially. It is a little wonder that this marketing method is charging full steam ahead, as the retail affiliate category is generating the highest revenue, with merchants increasing their income between 5-20% annually due to it.
If those reasons aren't enough for you to invest in affiliate marketing for your eCommerce business, then perhaps these will help:

Unrestricted Scaling

The uncertainty of sales figures is one of the biggest obstacles businesses face with respect to scaling. This type of marketing helps with the mitigation of that uncertainty.
Influencers hired for such marketing come with large user bases of their own. Even if a small percentage of that crowd converts, it can impact sales figures immensely.
Furthermore, these users will spread the brand's word to their peers and others online and offline, enabling cascading scaling of potential customers.

Improved Tracking

The management of product flow and finances is not easy for online retailers. This problem gets exacerbated with scaling. Numerous measures have to be put in place to get this vital bit of the business in order.
This type of marketing can help here too. Each action/response of a user can be tracked and logged precisely. Bounce rates and conversions related data can be generated with ease and studied to improve strategies and operation modes.

Targeted Sales

Random marketing of items to customers might not get their attention, as the product might not be what they are seeking. Focused marketing of specific products to the right customers is what nets successful sales.
Influencers can give their customers exactly what they need. Associating the appropriate type of product with relevant influencers will sharply increase the chances of it getting sold.
Clothing, footwear, and sporting goods hold the maximum share amongst all online goods sold. Using influencers who can market these will help your online business tremendously.

Growth in Popularity

Influencers rely on the reputation they've built for themselves to attract and retain followers of theirs. The more they attract, the greater their
value and popularity.
Affiliate-based marketing uses this to carry a brand's name and fame to newer heights. The affiliate's followers will associate the brand's value with that of the affiliate's.
The brand's reputation and awareness skyrockets alongside the influencer's.

Strong ROI

eCommerce is no small undertaking, and its margins are relatively low for every unit sold. Scale is what gains profit for online retailers. Thus, the marketing budget must get implemented to get the maximum ROI.
The cascade effect of scaling and conversions for minute amounts paid as commission to affiliates makes this marketing type one of high ROI. Visibility increases at large with comparatively low input costs.

Payment Mode Flexibility

There are many options with regards to paying commissions to affiliates. The most common method is the direct one, where a payment gets made for every successful sale that happens through the affiliate's unique link.
Commissions also are disbursed for lead generation through actions like form submissions, email signups, social media follows, content downloads, etc.
The other mode is click-based, in which an advertiser pays the affiliate on every click of the link by a visitor if the affiliate manages to generate a set amount of traffic.

Improved Purchase Conversion

Despite the boom in eCommerce, research shows that only 1.94% of site visits end up making a purchase, which is abysmal. Usually, it is because of a lack of sufficient efforts towards this aspect.
Affiliates can help here significantly by actually endorsing your products. They could showcase their usage of the same, compelling their followers to want them too, pushing up the conversion rate.
eCommerce merchants will increasingly fill their bank accounts as more customers fill up their virtual carts. Affiliate marketing can lead the charge to that state of the business by generating the leads and converting purchases.
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