The Amazon Associates program is likely the most popular affiliate program out there. It’s easy to get into, easy to use, and when it comes to physical products, Amazon has access to virtually any type of product.
An Amazon affiliate calculator can be a great tool to estimate earnings on a niche site based on traffic, conversion rates, and the commission rate for the items being sold. Website flippers or creators focusing on Amazon products with a passive-income goal can put the numbers in and see what traffic, conversions, etc., they need to achieve.
Make sure to use the calculator above and try it out. The following sections will cover how the calculator works and how to maximize Amazon affiliate earnings.
How is Amazon Affiliate Revenue Calculated…
The formula used in the calculator to determine revenue is:
Revenue ($) = Pageviews x CTR (%) x Conversion Rate (%) x Commissions (%) x Product Sale Value ($)
You can estimate all of the formula elements or grab them from Google Analytics and/or your Amazon Associates dashboard.
Here is an example of your dashboard showcasing a few of the critical elements:
You can use the following data in the dashboard to calculate the numbers you need for the calculator:
- Clicks: represent the number of clicks sent to Amazon from your site. To get CTR, you can calculate the following: CTR = Clicks / Pageviews
- Shipped Items Revenue: This is the total revenue (not your earnings) you generated for Amazon. You can use this to calculate Product Sale Value by doing the following: Product Sale Value ($) = Shipped Items Revenue ($) / Ordered Items
Here is a breakdown of the different elements in the formula:
1. Determine Traffic Pageviews
If you have Google Analytics on your site, this is as easy as grabbing the number from there. Every niche site should have an analytics program of some sort.
Or, you can enter an estimated pageview number to understand how much traffic you need to obtain certain earnings from Amazon Associates program.
2. Estimate CTR to Amazon (%)
There are two ways to go about this:
- If you have access to your Amazon associates dashboard, you can take the number of clicks and divide that by pageviews. This will give you the percentage of visitors to Amazon
- Or, make an estimate of a certain CTR from your site to Amazon. Typical ranges are 10% to 25% depending on how optimized your site is
3. Estimate Amazon Conversion Rate (%)
This number you can pull right off of the Amazon Associates dashboard, OR you can make an estimate.
Conversion rates can range from as low as 4% to as high as 15%, with anything above 8% generally considered reasonable, and anything double digits are considered extremely high.
4. Estimate Amazon Commissions (%)
Different categories have different commission rates. Most sites will focus primarily on products in one niche, so most sales will be a fixed percentage. However, not that Amazon pays for ALL items in a customer’s shopping cart and thus you get a mixed commission rate.
An average commission rate of 2% to 4% works in most niches.
5. Estimate Average Product Sale Value ($)
If you have access to the Amazon Associates dashboard, take your shipped items revenue (not total revenue – this includes bounties and can throw the total off) and divide by shipped items.
Or, if you want to get an estimate, look through your niche’s products and come up with a typical average product value. For example, in the outdoor niche, the average can be anywhere from $50 to $100. For kitchen goods, it can be much less than $25. It depends here.
How To Increase Amazon Affiliate Revenue: 3 Battle-Tested Ways
From the earnings formula, you can see that to increase your revenue you can improve the following elements:
The element in your control is CTR by applying various conversion rate optimization (CRO) techniques. You can make immediate changes to your content to improve CTR.
Here are a few tactics you can try:
1. Add Comparison Tables
Good comparison tables are a fantastic way to increase the CTR. When people are online shopping, they want to see the best products they’re looking for and a heads-up comparison helps them make a decision and make that purchase.
While tables can be made in WordPress, consider a plug-in like Ninja Tables Pro, which makes very high-end professional-looking tables that can increase CTR.
2. Link Images to Amazon
The old saying goes “A picture is worth a thousand words.” It’s widely accepted that images have a higher clickthrough rate than plain text links.
There’s a time and place for both linked images and text. Both should be used in a blog post, but the linked images will get more attention. If you’re not using them, adding them will help raise CTR.
3. Add Call To Action Boxes and/or Buttons
One of the first rules for sales is to ask for the sale. Big call to action boxes or buttons have a major impact on CTR to Amazon and help nudge visitors on your site into making the purchase they were already thinking about anyway.
How Much Can I Earn with Amazon Affiliate?
To understand how much you can earn as an Amazon affiliate, let’s do an example with assumptions. We will increase the traffic pageviews while keeping other aspects constant:
- CTR will be 15%
- Commission rates will be 4%
- Conversion rate will be 6%
- Average Product Value will be $100
Here are the calculations:
- 100 pageviews results in $3.6 in earnings
- 1,000 paegviews results in $36 in earnings
- 10,000 pageviews results in $360 in earnings
Now, let’s see what happens if one performs conversion rate optimization (CRO) to improve the various elements on their website to entice more clicks. By doing so, they improve the CTR from 15% to 20%.
- 100 pageviews results in $4.8 in earnings
- 1,000 paegviews results in $48 in earnings
- 10,000 pageviews results in $480 in earnings
What Percentage Commission Do Amazon Affiliates Make?
This depends on the product niche. Here is the current table from Amazon US:
Keep in mind that Home and Home Improvement were 8% until the Spring of 2020 update so these can change over time.
They also vary based on country, so the rates for Amazon UK and Amazon Canada won’t be the same as the US Amazon affiliate rates.
FAQs about Amazon Affiliate Commissions
Here are the five most frequently asked questions about the Amazon Affiliate program.
Is Amazon affiliate worth it?
There are better affiliate programs out there but Amazon is universally trusted and therefore gets incredible clickthrough rates. They are very beginner-friendly and are going to be a solid monetization option for most niche websites.
Even for high-traffic websites that work out deals with other affiliate programs, they usually do more in conjunction with the Amazon affiliate program rather than replacing it.
How do I get $100 a day with Amazon Affiliate?
If your Amazon conversion rate is 8% with a category commission rate of 4% for products sold that are on average $100 per sale, and your site’s CTR is 20%, then you would need 1,560 pageviews per day to your site to earn $100 a day in Amazon affiliate revenues.
Do you get paid for clicks on Amazon affiliate?
No. Clicks are tracked because they can show you what percentage of visitors to your site click on a product link, and what percentage of clicks become sales, but you do not get paid per click for Amazon.
You get commissions on the actual sales that are made, not on clicks.
When do you get paid by Amazon?
Amazon pays out monthly towards the end of the month. The payment is two months delayed. This means sales made in January get paid out at the end of March, sales made in July get paid out at the end of September, etc.
How long do affiliate cookies last?
Cookies from Amazon’s program last for either 24 hours or until a sale is made from that visitor, whichever comes first.
Amazon can be a great way to monetize niche websites. A good Amazon affiliate profit calculator can also help a website owner set traffic goals that get them to the numbers they want to see in earnings.
What steps should you take now?
- Use an Amazon Affiliate Earnings Calculator to figure out how much traffic you need to reach your goal
- Add comparison tables to your highest-traffic articles to increase clickthrough rate
- Add images that link to the appropriate Amazon product, or add links to existing pictures that don’t have them
- Add call-out boxes and buttons to encourage purchases
- Add more optimized content
Follow these steps, then re-run the calculations after seeing how the CTR changes. You then have your new goal on your way to the level of Amazon earnings you want to see from your site!