Affiliate marketing is one of the few ways to grow an online store where you only pay when you make a sale. Bloggers, creators, review sites and even your own customers promote your products, and you pay them a commission on the orders they send.
It sounds like free growth, and done badly it’s a slow drain on margin. This guide explains how affiliate marketing works for ecommerce, how to set a commission that makes sense, and how to find affiliates who actually sell.
How affiliate marketing works for an online store
- An affiliate joins your program and gets a unique tracking link or discount code.
- They share it in blog posts, videos, social posts or emails.
- A shopper clicks the link or uses the code and buys.
- Your affiliate software records the sale and the affiliate earns a commission.
Tracking usually relies on a cookie or a code. The “cookie window” is how long after the click a purchase still counts, often 30 days.
Is affiliate marketing right for your store?
It works best when:
- Your margins can comfortably cover a commission on top of other costs.
- Your products are the kind people research, compare or review before buying.
- Customers already talk about your products online.
- Your store converts well. Affiliates won’t keep promoting a store where their traffic doesn’t buy.
If your conversion rate is weak, fix the store first. No affiliate wants to send traffic to slow pages or confusing checkout.
Setting the right commission
Commission rates for ecommerce often fall somewhere between 5% and 30%, depending on the category and margin. The right number for you comes from your own figures:
- Start with gross margin. If you make 50% on a product, a 15% commission still leaves room. If you make 20%, it doesn’t.
- Think about lifetime value. If customers usually buy again, you can afford a higher commission on the first order.
- Stay competitive. Look at what similar stores offer. Affiliates compare programs.
- Reward top performers. Tiered rates (for example, a higher percentage after a sales target) keep your best partners motivated.
Where to run your program
You can either run it in-house with software, or join an affiliate network.
In-house software gives you more control and lower fees:
- UpPromote, GoAffPro and Refersion are popular with Shopify stores.
- AffiliateWP is a common choice for WooCommerce and WordPress.
Affiliate networks give you access to established publishers but take a fee:
- Awin, CJ and Impact are among the larger networks, used by many retailers in the USA and Canada.
Smaller stores usually start in-house and recruit affiliates directly. Networks make more sense once you have a proven product and budget for fees.
Finding affiliates who actually sell
A thousand inactive affiliates are worth less than ten good ones. Places to look:
- Your customers. Happy buyers make the most believable promoters. Invite them after a positive review.
- Niche bloggers and review sites. Search Google for “best [your product]” and see who ranks.
- YouTube and TikTok creators who already review products like yours.
- Newsletters and podcasts in your niche.
- Complementary brands. A yoga mat store and a yoga clothing store can promote each other.
When you reach out, keep it personal. Explain why your product suits their audience, what they’ll earn, and send a free product to try.
Give affiliates what they need to succeed
- Good product photos and short videos they can use
- Key selling points and honest comparisons
- Exclusive discount codes for their audience
- Early access to launches and seasonal sales
- Regular updates on what’s selling
Disclosure rules
Affiliates must make clear they earn a commission. In the US, the FTC’s Endorsement Guides require clear and conspicuous disclosure. In Canada, the Competition Bureau expects material connections to be disclosed. Put this in your affiliate terms so it’s not left to chance.
Protect your margins
A few rules stop affiliate programs losing money:
- Watch coupon sites. Some affiliates only catch shoppers who were already buying, then claim the commission. Decide whether you allow coupon sites at all.
- Block brand bidding. Don’t let affiliates bid on your brand name in Google Ads.
- Pay after the return window. Approve commissions only once the return period has passed.
- Review results monthly. Cut partners who bring low-quality orders.
How affiliates fit with your other marketing
Affiliate marketing works best alongside other channels, not instead of them. Ads bring in new traffic, email brings customers back, and affiliates add trusted third-party recommendations. For more ideas, see our ecommerce marketing tips and our guide to ecommerce marketing tools.
Want your store ready for it?
Affiliates send traffic, but your store has to close the sale. We build fast ecommerce websites and run ecommerce advertising for stores in the USA and Canada. Get in touch to talk about your store.
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