Amazon FBA vs. Affiliate Programs: Which One Is The Best Program For You?

Updated on January 19th, 2019

Amazon is considered the world’s biggest online retailer based on its market and total sales. What is excellent about this giant company is that they also opened their platform to third-party sellers to sell their items. The Fulfilled by Amazon (FBA) program provides sellers a convenient way to store, ship, and sell their items.

Amazon’s business offerings do not end there; Amazon was the first e-commerce website to introduce affiliate marketing. The Amazon Affiliate Program is one way to earn a passive income online wherein people earn commissions from the sale of the Amazon products they promote. A lot of bloggers are using this program to gain another stream of income.

If you want to take advantage of these Amazon business offers but are confused as to which program to focus on, this article is for you. You can also visit journalreview.org avoid scams and be more informed about different business ideas.

Take a look at the details of each program below and its benefits to determine which one is perfect for you.

Amazon FBA

Amazon FBA vs. Affiliate Programs

Amazon FBA is a service offered to Amazon sellers where members can store their inventory in the warehouses of Amazon’s fulfillment centers. Amazon is responsible for the packing and shipping of the products and providing customer service on behalf of their merchants.

This paid feature is not exclusive to items being sold on Amazon; a seller can use the FBA service for products they’re selling outside of the Amazon website.

To know if this program is right for you, here are the advantages that come along with Amazon FBA:

  • Qualification for Amazon Prime. Availing of the FBA program qualifies all of your items for Amazon Prime shipping, where items are guaranteed the two-day shipping feature. Customers will get their orders faster without additional charges. This feature automatically makes you a trusted seller in Amazon.
  • Use for other channels. The service can be used for items being sold on Amazon and on other platforms. This is useful for merchants who post their items on multiple channels.
  • Greater customer reach. Amazon has established itself in all parts of the world, so practically anyone with an Internet connection can buy from you.
  • Focus on other business operations. Because Amazon takes over the storage, packing, and shipping of your inventory, you can spend more time on your other business efforts. Plus, you don’t need to hire staff for customer service because Amazon has you covered, too.

 

Amazon Affiliate Program

Amazon FBA vs. Affiliate Programs_1

This program, also called Amazon Associates, was introduced in 1996. Twenty years later, this referral program has proven its track record of providing Amazon sellers and its associates the ability to earn money by promoting a diverse range of products in their marketplace.

An associate earns commissions when a consumer purchases products through the link he provides. The referral fee can be up to 10% of the sales.

If you’re looking for an affordable and simple way to earn additional income, take a look at the following perks of the Amazon Affiliate program:

  • Straightforward business idea. The method of earning a commission through referrals is relatively simple, and you don’t need an upfront investment to participate. Select a particular niche that you feel comfortable promoting through your blog or website. After the sign-up process of the selected affiliate marketing program, you can start promoting products.
  • Diverse product range. Almost anything and everything is sold in Amazon, so it’s not difficult to find products that are relevant to your blog’s niche.
  • No experience needed. You learn as you go in this program and marketing expertise is not a requirement for you to earn. However, you should be comfortable in promoting products within your niche.
  • Low operating costs. This affiliate program is free, and you only need to spend on your Internet services and electricity in promoting your products. Optionally, you can set up an affiliate website for your promotional campaigns, for which you need to spend some amount.
  • Convenient and flexible. You can add or abandon affiliate links as you please. Choose from a variety of products, create promotional campaigns, assess their success, repeat the successful ones, and abandon poor ones.
  • Passive income. With patience and a lot of hard work, this referral program can give you good passive income. Earn while you sleep – that’s the idea – but only after doing your promotional campaigns religiously and gaining a deeper understanding of what works and what doesn’t.

Final Thoughts

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Now that you know what the benefits of the Amazon FBA and Affiliate programs are, it should be easier to choose which one is more viable for you. If you’re more comfortable with selling products on Amazon, then Amazon FBA is clearly beneficial for you.

If you’re given the talent of persuasion, promoting products might come naturally for you, and you can be a successful Amazon Associate. Regardless of the program you choose, you should understand that commitment is still essential for your success.

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