Maximizing Your Sales Potential on Amazon: The Benefits of Creating an Independent Referral Marketing Channel

Posted by Diana Faye Cichon / June 21, 2023

Amazon is a giant in the e-commerce industry, and companies that operate on its platform have the potential to reach a vast market. However, as the competition on Amazon is fierce, companies must think of innovative ways to attract customers and increase their sales. Referral marketing is one strategy that can work wonders for businesses on Amazon.

Referral marketing is word-of-mouth marketing where companies encourage their existing customers to promote their products or services to people in their network. Companies can significantly increase their customer base and sales volume by incentivizing customers to refer potential buyers. Amazon also has its referral program called the Amazon Associates Program, which enables influencers and website owners to earn a commission by promoting products, incentivizing them to advocate for the brand and drive sales. However, companies on Amazon should rely on more than just the Amazon Associates Program to drive their referral marketing efforts. By creating their referral marketing channel, companies can have more control over their program’s terms and conditions and incentivize customers in ways that benefit their business. 

Here are some reasons why companies on Amazon should open their referral marketing channel.

Increased Brand Awareness

When companies create their referral marketing channel, they can customize the program’s look and feel to align with their branding. This consistency across all marketing channels can help increase brand awareness and recognition. Additionally, when customers refer their friends and family to products on a company’s website, they are more likely to remember the brand and revisit the site for future purchases.

Better Control Over Incentives

Amazon’s referral program has set commission rates for all products, and companies on Amazon cannot change them. However, by creating their referral marketing channel, companies can decide how much incentive to offer to their customers for referrals. They can also choose the rewards they want to provide, such as discounts, free products, or exclusive access to sales.

Direct Communication with Customers

Companies can gather valuable customer information by creating a referral marketing channel, including email addresses, social media handles, and phone numbers. This information can be used to communicate directly with customers and keep them engaged with new product launches, promotions, and other updates. Additionally, companies can use this information to personalize their referral marketing messages and make them more effective.

Increased Customer Loyalty

Companies can increase customer loyalty by incentivizing customers to refer their friends and family to a company’s products. Customers participating in referral programs will likely have a positive experience with the company and feel more invested in the brand’s success. Additionally, customers who refer others are more likely to return for future purchases to earn more rewards.


Companies on Amazon can use referral marketing to get more sales, attract new customers, and build loyalty. At NaXum, we have software that allows Amazon companies to set up their own referral programs easily. Our software is user-friendly and provides detailed information on how well the referral program is working. By using NaXum’s software, companies can encourage their customers to share their products with others, which can help increase sales. 

If you’re an Amazon company looking to leverage the power of referral marketing to boost your sales, book a discovery session with us today!

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Diana Faye Cichon


Diana's daily goal is to gamify her work by performing her tasks as a Marketing Champ to the best of her ability and striving for 10x productivity by the end of each day. She worked as a Front Desk Associate for three years before starting her marketing career in 2022. Diana firmly believes in Kaizen: Constant and Never-Ending Improvement, and she always strives to learn and grow in the ever-changing world of digital marketing.

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