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Amazon Promotions: A Quick Guide

Amazon Promotions

Amazon shoppers know that shoppers love to get a deal. Promotions are very popular. These promotions are a great way to increase sales, convert customers and attract new customers.

But, is this right for you? Should you run promotions during the Holidays? This article will give you an overview of Amazon promotions and how to use them, including how to set them up and the pros and cons of each.

These are the Main Types Of Amazon Promotions

1. Lightning Deals on Amazon

Amazon Lightning Deals are a very popular feature. These promotional offers are time-sensitive and can be found on Amazon’s Deal of the Day page.

Amazon customers find lightning deals attractive because the products are always changing. The Deals last only four to six hours.

Lightning Deals: Eligibility

Amazon must consider products eligible for Lightning Deals. Although the eligibility criteria are subject to change, the most important ones are:

  • Product star rating: Products should have a rating of 3+ stars
  • Fulfillment Method: Products must qualify for Prime via Fulfillment By Amazon (FBA), or Merchant-Fulfilled Prime(MFP).
  • Amazon Lightning Deals: Certain product categories, such as alcohol, are not appropriate for Lightning Deals.

Recommended Guide: How to Create an Amazon  Lightning Deal

Fees for Lightning Deals on Amazon

An Amazon Lightning Deal typically costs $150. Due to the increased traffic on Amazon’s website, the cost of an Amazon Lightning Deal is usually $150.

Amazon Lightning Deals: The Pros and Cons at a Glance

Lightning Deals are a great way for you to increase sales and conversions by appealing to shoppers to buy your product at a special price.

They are also very effective in liquidating or reducing inventory quickly to avoid excessive storage fees.

Lightning Deals come with a fee so you need to evaluate whether the deal is financially viable.

2. Amazon Promotions

Amazon promotions are another way to get products in front of more customers. Promotions allow you to offer products at a discounted price to increase sales.

Types of Promotions on Amazon

There are three types of promotions you can choose from:

  • Percentage Off: This is the most popular promotion. You can specify the discount and decide whether you want to create claim codes for one-use (which limits each customer to one discounted purchase) or multiple-use (a generic code such as “SAVENOW20”, which anyone can use).
  • Free shipping: Customers who spend a specified amount or purchase a particular quantity of products can get free shipping.
  • BOGO (Buy One, Get One): Another popular promotion is BOGO. Customers get a free item with every purchase.

How to Create a Promotion on Amazon

  1. Go to Seller Central and click on the “Advertising Menu” and then select “Promotions”.
  2. Select the promotion type you wish to create from the Promotions page.
  3. Follow these instructions to create a promotion for your product.

The Pros and Cons

Promotions are a great way for your brand to be known and to drive more traffic to your products, which can help you increase sales.

However, mistakes can easily be made when promoting products. This can lead to inventory being lost.

You should also calculate the amount you can invest in these promotions. Your margins will be affected by any type of promotion. While you can choose how big an impact is, you still want to make a profit. Even though it is a smaller one.

3. Amazon Coupons

Amazon coupons can be found in search results, product detail pages, as well as other places, including sponsored product ads. These coupons can be “clipped” by shoppers to be applied to their orders, just like coupons in printed circulars.

Different types of coupons

There are two types:

  • Link coupons: To get a discount on eligible products, shoppers must click on a link. These coupons can be used for all products in your shop, e.g. Take $10 off your order or get $5 off when you spend $30
  • Clip coupons: These coupons can be used to purchase specific products. After they are clipped, they can be added to the item that is eligible in the shopping basket.

How to Create Amazon Coupons

  1. Go to your Seller Central account and click on the advertising tab. Select “Coupons” from the drop-down menu.
  2. Click “Create Your First Coupon” to select the product for which you wish to create coupons.
  3. Choose a percentage discount or dollar.
  4. Your budget should be sufficient to cover the cost of the coupon. This coupon is composed of the discount amount plus $0.60 coupon fees plus. This budget will be deducted each time you sell an item. Your coupon will be automatically deactivated once your maximum budget reaches 0.
  5. You can schedule how long you would like the coupon to stay good for. This can be anywhere from one day to three months.

The Pros and Cons Of Using Coupons at a Glance

Coupons have been around since the dawn of time and shoppers love them. 

Coupons can help you win shoppers’ clicks by allowing them to see your product alongside the competition in search results.

It is a great way for you to attract new customers, increase brand awareness and increase conversions.

Coupons, like all promotions, come with a cost. You will need to consider this cost to make sure it is financially viable.

There are many benefits to running a coupon or deal on Amazon. These coupons can increase your brand’s visibility and sales, as well as boost conversion and sales. 

They can also drive more traffic to events like Cyber Monday and Black Friday at this time of the year.

Your marketing goals, as well as your budget and profit margins, will determine the type of promotion that you choose. To ensure that you remain on top, it is important to understand your numbers.

Check out this guide to find the trends of eCommerce.

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