Ecommerce Affiliate marketing is a booming advertising and referral medium for e commerce stores. The commission earned by third parties, referred to as affiliates, for the sale of a company’s product or service needs to be calculated based on certain parameters.
The following parameters decide affiliate commission rates for the affiliate program manager.
In order to manage and calculate affiliate commission for eCommerce sales, it is essential that an automated tool be utilised to set commission rates and make payments to affiliates.
Various Ecommerce platforms provide for automated calculation of commission rates for affiliates. One such marketing software is the 1shopping cart which works as one of the secure, powerful ecommerce online store softwares.
In 1shopping cart, this automation in the calculation of affiliate commission takes the help of a referrer code. Once the details are filled for the affiliate, the software generates a referrer code. The referrer code is generated for each of the affiliates that login to the eCommerce software. This process further generates a unique link for sale by that specific affiliate.
This type of automation to calculate affiliate commission rate gives a fast-pace compilation of the necessary amount that needs to be paid to the concerned affiliate without any complication. It is also a simple, yet secured, procedure to ensure accurate allocation of the affiliate commission rates that is assigned to the respective referrer code.
Further optimization of this software is brought about by the addition of a flexible feature wherein it can produce report of various periods with regards to the calculation of affiliate commission rate. These amalgamation of unique id/code and calculation in terms of period, make these affiliate marketing applications essentiality in the field of eCommerce.
Various major E-commerce sites like Amazon, flipkart acts as a third-party distributor and distribute revenue with the help of affiliate commission. As the e-commerce business dynamics is increasing day-by-day, the options for the method of payment between the sellers and the sites, affiliate commission remains a top choice. It provides advantages to both parties.
Advantages of affiliate commission: