What is preferred associate store id

Your preferred associate store id is nothing but your amazon affiliate tracking id. You choose something memorable such as yoursitename or any other short names. This associate store id must be integrated into your amazon affiliate link. Amazon tracks your commission using this associate store id. You can choose any name for this.
You can create different associate store id's from within your dashboard after you create your first. To know more about amazon associate program, visit this lnk.
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