Over the years, affiliate marketing has changed e-commerce, offering brands higher reach without added expenses. In this post, we go into detail about the dynamics of affiliate marketing on Shopee and Lazada in Thailand - where sellers and influencers collaborate to promote products beyond the platforms.
Understand the benefits of working with influencers, navigating marketing challenges, and maximizing sales revenue for your e-commerce online store management.
Gain insights into tracking performance and adapting strategies for better results.
Lazada have emerged as prominent players in the Thai e-commerce scene. With a significant market share, understanding each platform's unique features and strengths are crucial for affiliate marketers aiming to capitalize on the popularity of these online marketplaces and understanding your online store management. Affiliate marketing is a marketing tool that enables you to solicit people to promote your products outside the Lazada platforms.
Both platforms have a network of sellers/influencers that showcase your store products across various partner channels. Stores can benefit from this advertising format, compensating the sellers/influencers with a commission: no sale, no pay.
The payout of the commission only occurs when orders are completed which makes this a win-win strategy.
Let’s explain how it works for influencers. Lazada have invited influencers (or social sellers) to promote products outside their e-commerce platforms.
For example, if you are a person with a big following on social media, you can earn money by applying for the affiliate programs of Shopee and Lazada.
When you register yourself as a social seller, you can pick from several brand offers in the Shopee/Lazada backend. Once you find a product that fits your audience, you can request the product link, create content for this product, and post it on your social media channel. The products will be promoted through various channels of partners. Some of these are through influencers, content creators, websites, cashback apps or websites, price comparison apps or websites, online advertising networks.
Lazada Recently they have added big influencers (>1M followers) to their partner network that allow you to promote your products to a large audience for a high commission rate (10-35%).
The reason for that is that influencers have the final say in the selection process. As a store owner, you put your offer on the affiliate market, and influencers evaluate and select those that are most attractive to them. In the image below you can see the offers that influencers can choose fromSample of Shopee Affiliates organized by product categoryShopee Product offers are organized by sales volume and Commission % Shopee Product offers are organized by sales volume and Commission % 5.
The offers are ranked by product sales and commission. Some of the challenges you may face are: • How do I stand out from the other offers? The sales commission of affiliate marketing can be as high as 25% in Shopee (and 35% in Lazada). Therefore, as a new /small brand, you have to make your offer as attractive as possible. If you like to attract social sellers but your current sales volume is low, you will have to offer higher sales commissions (read >10%) to increase the chance of being selected by influencers. •
Product placements are on influencers' social media channels, but also on price comparison sites, cashback apps, and other discount sites. Lastly, Uncover common challenges faced by affiliate marketers and explore practical solutions. Real-life success stories from the Thai market will inspire you to overcome obstacles and thrive in the affiliate marketing landscape.
Lazada and Shopee Affiliate Programs are effective for the e-commerce brands in Thailand. According to the research, the Ad spending in the Influencer Advertising market in Thailand is projected to reach US$ 68.78 millions in 2024. 1 in 3 buyers place importance in “Most recommended on Social Media” as the key purchasing factor, especially for the younger generation.
It's essential to leverage the power of influencer collaborations. Sellers are encouraged to actively seek partnerships with influencers, particularly those with a significant social media following. By tapping into the reach of influencers, brands can enhance product visibility beyond the platforms, reaching a broader audience.
Additionally, a strategic approach to commission rates is advised, with a focus on making offers attractive to influencers, especially for new or smaller brands. Emphasizing product uniqueness and providing higher commissions can increase the likelihood of selection by influencers, driving more effective promotions. Furthermore, staying updated with platform recommendations and embracing the flexibility of affiliate marketing dynamics will position sellers for sustained success in the competitive Thai e-commerce market.
It's based on the platform requirements but basically in all the marketplace platforms like Lazada & Shoppee, you can easily go inside the panel & start choosing your products which you would like to work for the affiliate programme.
After that, you can choose the commission amount that you would like to give to the influencer once there is a sale.
Then choose a starting date and end date of your campaign.
We suggest leaving it on for 2-3 months to see the effect: just because, No sales No cost Creatives:
Add a set of creative banners for influencers to use .
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