Thursday, 2 April 2015

Amazon vs Flipkart affiliate programs - Which is best for publishers on india

Flipkart has been the most popular online shop in India for several years. In June 2013, Amazon launched its India marketplace, "Amazon.in", offering limited number of items like books, movies and television shows for sale. Slowly, they expanded to other sales channels and currently they offer thousands of items including kitchen items, toys, jewelry, gadgets, electronics and so on.

Their affiliate programs was Flipkart offers last for years. Bloggers who wanted to make money through affiliate programs had limited opportunities in India. Flipkart affiliate program was one of the worst paid affiliate programs in the country, however, since publishers did not have many other options, most of them, they used to make in order to recommend some money Flipkart products through their blogs. It was easy to recommend and sell their products because they offer the best deals for consumers in India.

Personally, I have reviewed and compared many affiliate programs in India, even though I myself do not make much money out of it. One of the biggest challenges in making money from affiliate programs is, you may have to recommend many products that really shouldn't be recommended. I am not very good at doing that.

Amazon vs Flipkart affiliate programs - Which is best for publishers on india

Affiliate programs: Flipkart vs Amazon

Let us come back to the topic and see which one is better for Indian bloggers and webmasters.

Flipkart has been offering very low commission to its affiliate partners earlier. For example, by referring customers to buy a computer, bloggers would get just 0.5% commission from them and up to 1% for many other electronic products and gadgets.

Many bloggers and webmasters have been eagerly waiting for Amazon to enter the Indian market since their commission structure is very good in USA and UK. When Amazon.in marketplace was launched in India, it was a tough competition for Flipkart to keep its market lead. Consumers started receiving good deals while the top 2 players competing each other started offering great discounts for many products.

In June 2013, Amazon affiliate program was launched for Indian publishers with a much better commission structure compared to the existing Flipkart commission structure. Since then, many bloggers switched to Amazon instead of promoting Flipkart products.

Within a few weeks after Amazon launched its affiliate program in India, Flipkart significantly increased their commission structure to compete with its new rival, making it a tough decision for bloggers to choose.

Here is a comparison sheet of the latest commissions structure offered by both the brands:

Comparison of Amazon and Flipkart affiliate commission structures

Although Flipkart increases the commissions up to 16 times for certain categories such as electronics, they are still lower than Amazon Commission in the appropriate category. Even with the new commission structure, Amazon still has about 20% higher affiliate commission. The only category Flipkart has an advantage is the eBooks category where they offer a commission of 15%. On the other hand, Amazon is no commission on all purchases for Kindle eBook.

Compare payment options


Before I conclude, let us take a quick look at the payment options in both the programs.

Amazon associate program offers monthly payments. Typically, you will get the payment for any items sold through your affiliate links within 60 days from the month it was sold. Minimum payment threshold for cheque payments is Rs 2,500, even though you can set higher thresholds.

Flipkart offers 2 payment modes:

1. Gift vouchers
2. Electronic Funds Transfer

In case of gift vouchers, the payment threshold is Rs 250 and in case of EFT, it is Rs 2,500. There is no option to set a custom threshold. Payments are made approximately 45 days after the month of sale, compared to the 60 day payment delay in Amazon.in

Both the companies will deduct 10% TDS unless you submit a TDS waiver certificate.

Which affiliate program is better - Amazon or Flipkart?


Here is my recommendation. Don't to with a single program. Even if one offers better commission than the other, it is of no use if the items you promote are sold at a better deal on some other site. What you have to consider is the conversions. It is of no use if your referral link is not converting to a sale. If the products are sold at a lower price in Flipkart, then it is better to promote the Flipkart link, even if they offer lower commission to you.

Here are few points to consider before you choose the affiliate program to promote in your website:

1. Which e-Commerce website is selling the item at a lower price, which has the highest chances of conversion. Go for the one with the lowest price and best deals to consumers.

2. If all brands offer the products at the same price, then choose the program with the best commission, which is Amazon associate program in most cases.

1 comment:

  1. its depends on the percentage mostly amazon affiliate is better for me.. am new to affiliate only the real people who are really earning they can justify .. but my intention amazon is better

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