There is an essential and irreducible conundrum hovering over the minds of individuals who try their hands at e-commerce marketplace scripts. This conundrum can be aptly called “Chicken and Egg question.” On the e-commerce business front, the following issues may pique the curiosity of these individuals:
Sellers abound- Hardly any users: This is a situation in which the e-commerce marketplace script owner is endued with many seasoned sellers. However, when it comes to the count of users, the figure seems insignificant.
Users abound- Hardly any sellers: This is contrary to what is furnished above. In this situation, the e-commerce marketplace script owner is endued with many registered users. However, when it comes to the count of sellers, the figure seems too trivial and all the more inconsequential.
E-commerce aficionados came up with an interesting performance based marketing system called Affiliate System to address the aforementioned concerns. Affiliate system allows you to mount remunerative referral schemes thereby precluding any issues that may dent your appeal among your target audiences. Your aura of leadership in carving a niche for yourself is never dimmed.
Understanding Affiliate System for Marketplace platform:
Before understanding what an ‘Affiliate System for marketplace platform’ means, it is important to understand the gist of Affiliate Marketing. In a broad sense, Affiliate Marketing can be defined as one of the many promising ways in which you as a publisher can make a fortune by promoting the goods and services of other business vendors.
Following the same train of thoughts, Affiliate System for Marketplace platform can be eloquently expressed as a way of making fast bucks and deep pockets by bringing in more traffic and more active customers to third party ecommerce marketplace platforms. For instance, you may furnish the link of a third party ecommerce marketplace platform. Your regular blog readers may visit the link and end-up purchasing a few products from the marketplace platform. This link is called affiliate link. In such a scenario, you are paid what in e-commerce jargon is called ‘commission per effective purchase.’ Many e-commerce giants such as Flipkart and Amazon have already customized their affiliate marketing programs. In Flipkart affiliate program, if you spread your referral link and encourage users to install the app, you are paid on a proportionate basis. Amazon affiliate program is deemed one of the best and effectual affiliate programs.
Conversions are always tracked. To track conversions, the advertiser may employ various techniques such as:
Publishers/bloggers/influencers are given dissimilar coupon codes. Readers i.e., followers of the blog/forum may redeem the coupon codes. Depending upon the coupon code redeemed, the conversions coming under the aegis of the particular blogger/influencer are tracked.
A link that is inherently embedded with a unique special code is given to each and every blogger who is deemed an affiliate or worthy of being an affiliate. Advertisers can track the conversions and the links responsible for the conversions. The tracking is usually done by leveraging the features of cookies.
There is another appealing model which our team of ecommerce fraternity calls it eloquently and aptly as ‘Bicycle Pedal Model.’
Understanding the Bicycle Pedal Model:
Here, cycle pedals may be regarded as the wheels of fortune. On one side is the vendor and on the other side is the user. Both of them exhibit an unusual level of synchronicity thereby enabling e-commerce marketplace platform to transform itself into the next big thing.
Let us assume that XYZ is a leading ecommerce marketplace platform. As an influencer and an affiliate marketer, it behooves on you to propound the remarkable features of XYZ. Refer users. Encourage them to buy. Keep your shirt on! Refer sellers too. For every item your referral seller sells, earn a handsome amount. Imagine an ecommerce business activity where both buyers and sellers consider you a referrer of their initiatives. You make it both ways! You are paid according to the deals you cut and if sellers and buyers jockey for a larger share, a heavy wallet is the offing!
Note: We’ve done similar affiliate revenue models for our marketplace website software. If you want similar revenue models to be integrated into your eCommerce platform, contact us.
Advantages of Affiliate Market system:
A radical transformation of your ecommerce marketplace platform is definitely in the wind due to the following advantages:
Digital Presence: Influencers and affiliates promote your products on a regular basis. As a consequence, your website’s SEO is bound to flash and flash hard.
Higher Traffic: Thanks to the monumental efforts of your affiliates, higher HTTP traffic is always on the cards.
Increased Sales: An increase in sales is likely to increase your revenue, ROI and profit margins. In addition, you can establish a good rapport with your customers by winning their loyalty.
Legion of followers: Convert your customers into social media advocates. Enjoy a rich legion of followers!
Before drawing the curtain close, we would like to explicitly mention that our ecommerce marketplace platform is well endowed with a robust multi-level affiliate market system.