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What is the difference between an Amazon affiliate and an Amazon seller?
The main difference between an Amazon affiliate and an Amazon seller lies in their roles within the Amazon ecosystem, how they generate income, and the responsibilities they hold. Here’s a breakdown of the differences:
Amazon Affiliate
An Amazon affiliate participates in the Amazon Associates program, which is Amazon’s affiliate marketing program. Here’s what it entails:
- Role: Amazon affiliates promote products sold on Amazon through their affiliate links. They do not sell the products themselves.
- How They Make Money: Affiliates earn commissions when people click on their affiliate links and purchase products from Amazon. They earn a percentage of the sale price of the product(s) purchased, regardless of whether they are the product’s creator or a third-party seller.
- Products: Affiliates can promote any product listed on Amazon, including products sold by Amazon itself and third-party sellers.
- Requirements: Affiliates don’t need to have any inventory, and they don’t handle the fulfillment of the products. They just need to have a platform (website, blog, social media, etc.) to share affiliate links.
- Commission Structure: Affiliates earn a commission based on the sale price of the product(s), which can range from 1% to 10%, depending on the product category.
- Example: A blogger reviews a camera and includes an affiliate link. If someone clicks the link and buys the camera (or anything else on Amazon) within 24 hours, the blogger earns a commission.
Amazon Seller
An Amazon seller is a business or individual who sells products directly on Amazon through the Amazon Seller Central platform. Here’s how it works for sellers:
- Role: Amazon sellers list, sell, and fulfill their own products directly on Amazon, either by using the Fulfillment by Amazon (FBA) service or handling fulfillment themselves.
- How They Make Money: Sellers make money by selling products on Amazon. They set the prices for their products and may also incur fees for listing products and using Amazon’s services (like FBA).
- Products: Sellers have to own or create the products they are selling. They may sell their own brands or even resell products through programs like Retail Arbitrage.
- Requirements: Sellers must have an Amazon Seller Account, and they are responsible for inventory management, pricing, and fulfillment (unless using Amazon’s FBA service).
- Fees: Sellers must pay listing fees, transaction fees, and fulfillment fees (if using FBA). These fees vary depending on the product category and whether the seller uses FBA.
- Profit Structure: The seller profits from the sale price of the product minus any fees or costs related to selling on Amazon, including production, shipping, and Amazon’s selling fees.
- Example: A person who manufactures handmade jewelry sets up an Amazon Seller account, lists their jewelry on Amazon, and sells it to customers directly.
Key Differences:
| Aspect | Amazon Affiliate | Amazon Seller |
|---|---|---|
| Role | Promotes products and earns commissions. | Sells products directly to customers. |
| Income Source | Earns a commission on products sold via affiliate links. | Earns money by selling products directly. |
| Product Ownership | Does not own or stock the products. | Owns or creates the products being sold. |
| Product Promotion | Uses websites, blogs, social media, etc., to promote Amazon products. | Manages listings, pricing, and marketing of products directly. |
| Sales Responsibility | No responsibility for sales fulfillment. | Responsible for inventory, pricing, and fulfillment (unless using FBA). |
| Fees | No fees to join or participate. | Must pay fees for listings, transactions, and fulfillment (if using FBA). |
| Profit Structure | Commission from Amazon based on sales. | Profit from the difference between the sale price and the cost of goods and fees. |
| Cookie Duration | 24 hours for commissions after a click. | No cookie window – sales happen directly when a customer buys from the seller. |
Summary
- Amazon Affiliates earn commissions by promoting Amazon products and generating sales through affiliate links, without handling the products or fulfillment.
- Amazon Sellers create, list, and sell their own products directly on Amazon, managing all aspects of the product lifecycle, including inventory and fulfillment.
Both roles allow individuals or businesses to earn money on Amazon, but they do so in distinct ways: affiliates market products and earn a percentage of the sale, while sellers own or create products and sell them directly to customers.
