What exactly is affiliate marketing? Even SHEIN is doing it?

When it comes to the popular social media marketing methods in recent years, KOC (Key Opinion Consumer) and KOL (Key Opinion Leader) must be mentioned! In addition to brands actively contacting already famous KOCs, ordinary consumers can also earn commissions by joining the brand's affiliate program and bringing goods.

Let’s use a few questions and SHEIN’s example to understand the “thousands of tricks” of affiliate marketing!

Question 1: What is the affiliate program?

Simply put, the Affiliate Program is a reward system that encourages partners to promote their products in exchange for commissions . The Shopify website building platform provides related services to support registered sellers in affiliate marketing.

The following diagram shows the general operation process of affiliate marketing and the relationship between the parties involved and the products ↓

The editor learned from the Shopify blog that after customers, fans or professional marketers sign up for the brand's affiliate marketing program, they can promote products in various ways on social media platforms, and then direct target customers to online stores through the accompanying recommended product links. Orders achieved in this way can be converted into commissions earned by participants in the affiliate program.

( Affiliate marketing example from the Shopify blog)

Usually the commission paid by the brand can be a fixed amount or a "commission" based on the total "carrying goods" sales. In addition to commissions, brands can also provide free products or other forms of rewards to participants in the affiliate program.

Question 2: How effective is affiliate marketing?

According to the BigCommerce blog, in the United States, 81% of brands and 84% of publishers have adopted affiliate programs, and it is estimated that as many as 16% of online orders come from promotions by affiliate program participants.

In addition, the affiliate marketing spending of major brands is growing at a rate of 10.1%, and it is estimated that by 2020, the total affiliate marketing spending in the US market will reach US$6.8 billion.

At the same time, social media platforms, as an important carrier of affiliate marketing, are also showing increasing potential for e-commerce sales.

According to research firm eMarketer , although U.S. merchandise sales through social platforms may reach $36 billion in 2020 , accounting for only 4% of the country's total e-commerce sales , sales generated through social media platforms are growing rapidly. After reaching a growth rate of 38% in 2020 , sales generated by social media platforms are expected to continue to grow by 35% in 2021 .

In addition, eMarketer also predicts that by 2023, the number of U.S. consumers who purchase goods through social media apps will increase from 80 million in 2020 to more than 100 million .

Question 3: How does SHEIN use affiliate marketing?

The reason why SHEIN has become a benchmark for domestic independent overseas brands is that its outstanding social media marketing strategy must be a major "contributor" that cannot be ignored. SHEIN will naturally not miss the affiliate marketing plan that has broad development prospects.

By entering SHEIN's affiliate program from its shopping website, we can see that SHEIN's affiliate marketing logic is also to pay corresponding commissions to cooperating members after they complete the sales through social media platforms. The commission for a single sale can reach 10%-20% of the sales amount .

（ SHIEN's affiliate program display page）

In addition to a relatively fixed commission share, SHEIN will also provide additional monthly cash bonuses to affiliate program participants who help promote promotions . These SHEIN product "ambassadors" will also be the first to receive update notifications about monthly activities, coupons and banners .

SHEIN has also thoughtfully guaranteed the interests of its "sales ambassadors", namely: more than 2 million items in stock every day, with 500 new products arriving every day; reasonable prices; 24/7 customer service; and unconditional returns and refunds.

（ SHEIN Affiliate Program Registration Page）

Finally, SHEIN’s affiliate program registration process is also “extremely simple”, which not only facilitates users but also increases the chances of acquiring new partner members. It is undoubtedly a “win-win” move!

Interested sellers can also start to develop the affiliate marketing plan that suits them best, mobilizing fans to voluntarily become KOCs of their own brands , thereby reaching more potential consumers in a more authentic and down-to-earth way!

SHEIN

Shopify

BigCommerce

Affiliate Marketing