The internet, and its easy availability, has changed a lot of things around us. It has been a boon especially for businesses and entrepreneurs who have now gone online with their brand and reached a global audience.
In fact, it has never been easier to create a website and start an online business. With online website and mobile app building tools, launching an eCommerce business, and growing a brand has become a cakewalk.
For instance, AppMySite has made it easier to turn WooCommerce to mobile app without writing a single line of code. As an eCommerce business, you can go mobile, reach the app friendly customers and keep expanding your horizons.
You can go through the blogs by AppMySite and learn all about mobile app development and marketing, and more. However, today we are here to discuss another interesting topic related to the eCommerce industry.
If you have been wondering about selling external (affiliate) products on your website, then this is just the article for you. Stay tuned and learn all about the pros and cons of selling third-party products on your eCommerce website.
Selling affiliate products on eCommerce site: An Introduction
Many eCommerce platforms do not have their own stores. Most brands associated with food delivery do not have their own restaurants. However, these websites and apps continue to dominate the industry they are operational in.
This becomes possible because such brands partner with multiple small businesses, for example – retail stores or restaurants, and sell products from these businesses on their platforms.
Additionally, there are also some brands and eCommerce setups that have their own stores, inventory, supply chain, etc., and yet partner with other sellers and suppliers for incorporating multiple brands and widening the options for their customers by becoming affiliate marketers.
Clearly, it is a performance based business in which revenue is generated by marketers (or affiliates) who get a fixed commission when conversion takes place. This trend is constantly increasing and is being adopted by businesses across the globe.
It is not just big brands that are becoming affiliate partners and selling third party products. Even small businesses are venturing into it. If you have been planning on selling products from other sellers, you can totally go for it.
The pros of selling third party products on your store
Let us cut to the chase and discover the amazing benefits of selling affiliate products. You can ensure the following benefits by partnering with third party sellers:
#1: Easy to setup and start
The best thing about becoming an affiliate marketer or selling external products is that you do not need a huge infrastructure to start. You can sell almost any product or service on your platform that you deem fit and get started in no time.
#2: Minimal investment, maximum output
If you start selling third party products, you can truly achieve the cliched benefits of “minimum investment and maximum output”. For instance, if you sell clothes, apparels, and accessories, you can partner with a brand that sells shoes and bags.
Now since your customers will get everything they want for their perfect OOTD (Outfit of the day), at one stop, they will spend more time and money on your platform. Their chances of returning to your platform and purchasing the products will also increase.
Clearly, you will need to manage the inventory and supply for only the products that you sell. However, you will earn a commission for any and every sale made on your website.
#3: Huge income and networking potential
This is yet another great thing about becoming an affiliate partner for third party businesses and brands. You can earn endless profits by selling their products or services. This will be income that did not really require any primitive investment to begin with.
Besides the income, you will also get the opportunity to engage with different kinds of brands, sellers, businesses, and their stakeholders. Therefore, you can get an opportunity to learn new things and grow in the process as well. You can also use the opportunity for networking and interacting with people for amplifying your business prospects.
#4: Flexible choice of transactions
Affiliate Marketing has no set rule or norm when it comes to fixing the commission and transaction. This may widely depend on the understanding of the partners involved and may vary from brand to brand.
However, there are some well-defined parameters that can be put to use when fixing the payment and commission method. You can get paid for every click, every sale, every install (in the case of an app), or more.
This flexibility helps different kinds of businesses to interact with each other and become affiliate partners. You can have the same set of parameters for all your affiliates or have different commission rules for different brands. It all depends on you, your partner and the nature of the business and transactions.
#5: Exponential growth opportunities
Selling third party products on your website presents you with infinite growth and expansion opportunities. Let’s say you are selling some commodity that depends upon some other product or service to be completely valuable for your customers, you can make it possible with affiliate marketing.
For instance, if you are selling WordPress and WooCommerce related tools or services, then AppMySite can be a great affiliate partner for you. Most website owners want to complement their online business with apps, and you can sign up for the AppMySite affiliate program to offer the same.
In a nutshell, affiliate marketing has immense opportunities of growth for all. As per Statista, the affiliate marketing industry is predicted to reach the value of more than 8 billion by 2022. Clearly, it is an ever-increasing and evolving industry with infinite prospects. As your business grows, you can also scale your affiliate partnership programs and gain more benefits.
The cons of selling third party products on your store
Now that you are aware of the benefits, let us know about some of the drawbacks and cons of selling products and services from other sellers on your store. Some of the disadvantages or limitations are as discussed below:
#1: Irregular and uncertain payments
The payments or commission for an affiliate partner depends widely upon the conversions. As customers do not really visit your website for these products, you cannot be sure about a sale. This leads to uncertainty and irregularity in terms of income. However, once you have picked momentum, the right affiliate partners can ensure a continuous flow of revenue.
#2: Lack of control and inclusiveness
As an affiliate marketer, you may suffer from some serious FOMO (Fear of missing out)! In an affiliate partnership, you mostly remain a passive seller and suffer lack of control over many things.
For instance, you cannot control production, product quality or rate, etc. While it is great if you consider that you have minimum accountability and liability, those in the habit of micromanaging might feel left out.
#3: Finding right partners is tough
The eCommerce realm is constantly evolving and the rise in competition is compelling brands to offer nothing but the best. Therefore, you get multiple options when it comes to choosing the perfect affiliate partners for your platform.
However, the decision is not as easy as it seems. You will need to do ample research and pick your partners carefully. The right partners should have products or services that align with your own niche or at least fit in well. Their image should also be good enough to get associated with.
#4: Demands intensive involvement
While you may not have to do anything directly with how your affiliates run their business, as the partner you must be active, alert and informed of the various nuances. Besides, managing different affiliate partners can become a task itself.
Also, when you sell third party products on your platform, you often have to deal with the aftermath of it. This includes the consumers feedback, concerns, and complaints. While this depends on the level of agreement and involvement, it still demands your attention and dedication.
#5: Direct effect on brand image
Despite not having a direct relation or involvement with the affiliates brand, there image and conduct can sometimes influence your very own brand name. The responsibility does not end with forming a partnership.
Thus, it becomes important that you choose your affiliates cautiously. Keep analyzing various aspects of the partnership and reinventing your goals. Pick products and services that align with your own brand name and image and suit your targeted audience as well.
Need an app with external product support? Here’s the answer!
It is the age of smartphones, and every online business needs a mobile app to succeed today. However, just a basic app that offers mobile accessibility is not enough. It must be equipped with all the user-friendly and business-friendly features that are a part of your website.
If you are willing to sell third party products on your website, then you must extend this feature to your app users as well. If you are worried about the hefty charges and tedious process, then let it go as achieving this is a cakewalk with AppMySite’s app maker.
The power of app building comes at your fingertips with AppMySite as you can make your own app without coding. You can import your website data and content, including your product details.
Enabling external product support in the apps built with AppMySite is super easy. All you have to do, is enable it on your WooCommerce website by logging in to your backend. Just go to Products >> Add New >> Product Data and select the External/Affiliate option. Enter the affiliate link and the product details. Publish the new products and you will be good to go.
As your website and app are connected, most of the changes will reflect in your app automatically. This saves you from any intensive technical process and keeps your app up to date and ready for your customers. You can explore the platform for free and learn about it in detail.
That was all from our end today. If you are intrigued and want to explore more such informative and entertaining articles, then go through our other blogs and stay tuned to this space.
We post regular updates and cover a wide range of topics related to eCommerce, mCommerce, mobile app development, mobile app marketing, website management, affiliate marketing, and more.
Do not forget to checkout our app builder and create an app for free. Explore the platform, customize your app design, and test it. When satisfied, you can go ahead and publish the apps on the app stores.
So, what are you waiting for? Go ahead and claim your space in the app industry now!