Amazon Ads: New Brand Referral Bonus Increases Margin via Attribution

Amazon has launched a new program to encourage adoption of Amazon Attribution and to give credits to sellers that are using off-Amazon advertising campaigns like Google Shopping, social media or earned channels.

The economics of building a business on Amazon Marketplace are getting tough but not impossible. Here at Quartile, we understand that sellers need new tools in order to maintain revenues and profit margin, especially as fixed costs associated with logistics (both importing and last mile delivery) and cost of goods begin to climb for various reasons outside of a seller’s control (taxes, competition, fees, etc.). As such, we’re continually launching new features to control advertising costs while maximizing sales revenue to increase overall profit.

Not surprisingly, Amazon understands this is an issue for their US sellers as well. Accordingly, they have introduced a Brand Referral Bonus program in order to effectively lower the marketplace fees for sales that can be attributed to off-Amazon advertising via Amazon Attribution. Put simply, any purchases made by new visitors driven to Amazon by your ads will earn you 10% of sales within a 14-day window to be put toward your commission fees on Amazon.

For example, a brand makes two identical sales on Amazon, both driven to Amazon via a Google Shopping Product Listing Ad (PLA). The first sale results from a campaign that does not have Amazon Attribution set up, the second one does; after the sale is verified with Amazon Attribution, 10% of the sale price from the second purchase is added to the seller’s account as a credit for commission fees, effectively increasing the margin of that product by 10% when all is said and done.

Amazon sales margin example

A breakdown of the costs of sale on the same product with and without Amazon Attribution and the new brand referral bonus.

Overall, the total margin and profitability across both products is increased by 50%. If both products were the result of a campaign with Amazon Attribution correctly attributing the sales to off-Amazon advertising, the profitability would have doubled!

Here are five easy steps to get started boosting your margin and earning cash toward your Amazon Commission Fees:

  1. Enroll in the Brand Referral Bonus program. Note: Brand Referral Bonus is only available to US Seller Brand Owners at this time
  2. Register for Amazon Attribution (if you haven’t already)
  3. Contact your Quartile representative to apply your Amazon Attribution tags to your non-Amazon media
  4. Quartile will launch and manage your non-Amazon campaigns, optimizing in real-time via data connections to your Amazon Attribution reporting
  5. Sit back and watch the credit accumulate in your Seller account. Note, the Brand Referral Bonus program operates on a two month delay, so credit from new sales in August will appear in October.

Quartile clients can automatically benefit from this new program by enabling Amazon Attribution within their seller account and appending any non-Amazon media buys with the appropriate tag. Quartile enables clients to buy and apply Amazon Attribution to a variety of non-Amazon media: Google Shopping ads (including both search ads and PLAs), social media, owned channels like company blogs, and more, all automated directly out of your Amazon seller account.

Amazon Sellers can find more information in their Seller Central account at this link. For a quick rundown of the program as described by Amazon, check out their one pager here.

Are you an existing client of Quartile and want to sign up to start earning 10% of sales via the brand referral bonus? Reach out to your Customer Success manager for more information including how to implement Amazon Attribution on your non-Amazon PPC campaigns.

New to Quartile and want to know how we can help boost your profitability with the Amazon Brand Referral Bonus and our other machine learning capabilities? Set up a demo with our sales team today!

Michael Froggatt
Michael Froggatt

Senior Director, Marketing Programs