Flipkart, a leading e-Commerce portal is evidently feeling the pinch of global player Amazon’s entry in India. To ensure its Affiliates are happy & continue referring Flipkart’s SKUs, the web-business has significantly hiked Affiliate Payouts in this month.
Official statement within an e-mail to affiliates reads: “We will be offering you significantly higher referral payouts in July across all categories on the Flipkart.com Marketplace.” In other words, bloggers, web-admins & content creators, who have signed up for the Affiliate Marketing program will get a chance to earn more.
The hike in payout is across almost all the verticals & in some cases the enhancement is almost 10 times! For example payout for Laptops & accessories which was earlier merely 0.5%, is now increased to 5%. Books, the core initiation category for the site has seen almost doubling in affiliate payout with 10% as against earlier 6%, but the company hasn’t offered any higher incentive for the electronic version of the books or e-Books.
Why the sudden generosity?
Affiliate Marketing is perhaps as old a virtual marketing gimmick as the emergence of e-Commerce itself. Comprising Organic Search Engine Optimization (SEO), e-mail, content & Pay Per Click (PPC), among other techniques, it has helped creative content developers leverage their skills to boost sales of online business & earn part of the sales proceeds.
Until now, though other virtual storefronts might not confess openly, they have been indulging in such techniques to grow their business by ensuring products featured on their sites were written & read about. After gaining knowledge about the product & coming to the realization about its availability on a particular site, greatly enhanced the probability of a purchase.
Flipkart still wouldn’t have concerned itself to hike commissions despite the obvious advantages, but the official entry of Amazon in India via Amazon.in changed the market dynamics altogether. Amazon at the onset itself has openly started to offer 10% Affiliate Payout. If Flipkart doesn’t match or exceed those rates, content developers would gradually shift their loyalty to Amazon. To ensure such a calamity doesn’t occur, Flipkart has matched the commission rates. Do you think merely coming at par will suffice?