There are many different ways to scale your ecommerce business, from building your brand to trying new marketing strategies. But one of the most effective ways to encourage customers to shop with you is by offering a discount. For Amazon sellers, deals, promotions, and coupons are helpful tools that can garner attention and help drive sales.
Read on to learn more about the various discounts you can offer with Amazon, including:
- Amazon seller discount options
- The differences between a deal, promotion, and coupon
- Why discounts may be beneficial for your business
- How to create a deal, promotion, and coupon
- Tips for managing your discounts
What are Amazon seller discounts?
There are four main types of Amazon seller discounts:
1. Deals
Deals are promotional offers that run for a limited time. There are two types of deals: Lightning Deals and Best Deals. A Lightning Deal can run from 4 to 12 hours, as determined by Amazon. A Best Deal can run for a select number of days. The deal is applied automatically without a code. Both deals can feature special merchandizing like a Deals Badge to help them stand out.
You’ll need a Professional selling plan and an overall rating of at least four stars to create deals. Only select products are eligible for Lightning Deals. There may also be costs associated with your deal.
2. Promotions
There are three different types of Amazon seller promotions: percentage-off; buy one, get one free (also known as “BOGO”); and custom social media promo codes.
Percentage-off promotions act like a tiered discount, where the more a customer spends, the more they save. For example, you could run a promotion like, “Save 20% for every 5 pairs of socks purchased.”
For a buy one (or many), get one free promotion, you can determine the offer—it doesn’t only have to be buy one, get one free. You could do buy three, get one free, or set a dollar amount that shoppers have to meet before the free item applies.
Lastly, you can create a custom social media promo code to share through social channels, emails, or influencer marketing.
3. Coupons
Coupons give customers a percentage off or a specific amount of money off a single product or set of products. Any shopper can take advantage of a coupon. They appear on product detail pages, and customers can “clip” them or use a code to apply the discount to their purchase. Customers can also find coupons through search results, on the Amazon Deals page, and on products they’ve added to their carts.
There are a variety of different coupons, such as Prime Day coupons, or coupons that encourage customers to subscribe to a product for additional savings. Coupons are only available for a select amount of time, but you can determine how many times a customer can use the coupon.
To be eligible for coupons, you must have a Professional Selling Plan and an overall rating of at least 3.5 stars. There are certain requirements for product eligibility. Additionally, there is a redemption cost each time a coupon is used.
4. Prime Exclusive Discount
Prime Exclusive Discounts are only available to Prime members and can be applied to Fulfillment by Amazon (FBA) products. The discount appears on product detail pages, showing a regular price crossed out so Prime members can see how much they’re saving. The discount can also appear in search results.
Why should I create a sale with Amazon?
There are many reasons why it’s beneficial to use Amazon deals, promotions, and coupons as part of your business strategy, including:
- Stand out from the competition. You may be able to entice new customers to shop with you because you offered a discount.
- Stimulate sales. If you just launched your business or are introducing new products, offering a discount can help increase your visibility and encourage shoppers to try something new.
- Sell overstock. If you have too much inventory or slow-moving inventory, creating a discount can encourage customers to buy, which can help you reduce your stock.
- Boost visibility in the Amazon store. Create coupons that appear on the Amazon Deals pages, in search results, and on product detail pages.
- Incentivize holiday shopping. Customers are often on the hunt for a good deal during the busy holiday season. Offering a deal can help them make purchasing decisions that support their budget. Learn more tips on how to prepare for the holidays.
How to create a deal on Amazon
If you meet the criteria for a Lightning Deal or Best Deal, hover over Advertising in the Seller Central main menu, then select Deals. Click Create a new deal, select an eligible product to run a deal on, and follow the prompts.
Keep in mind that Lightning Deals are connected to specific categories, so people will find the deal if they search for your product within its category, under Lightning Deals, or if they search for your product. Make sure your product is categorized correctly so people can find your deal.
How to create a promotion in the Amazon store
To create a promotion, hover over Advertising in the Seller Central main menu, then select Promotions. From there, you’ll have the option to create a social media promo code; buy one, get one free; or percentage-off promotion.
Select the promotion type you want to offer, choose Create, then follow the prompts. You’ll have to submit your promotion for review before it’s activated.
How to add coupons in the Amazon store
To add a coupon to a product, hover over Advertising in the Seller Central main menu, then select Coupons. If you’ve never created a coupon before, you’ll land on an information page detailing the process. Once you’ve reviewed it, select Create your first coupon. (If you’ve created a coupon before, you can select Create a new coupon.)
Next, you can select a product or search for one by ASIN and follow the prompts to apply a coupon. You can add up to 200 ASINs to a coupon. You’ll have to submit your coupon for review before it’s activated. You can edit and deactivate coupons as needed from your Coupons dashboard.
How to create a Prime Exclusive Discount
To create a Prime Exclusive Discount, hover over Advertising in the Seller Central main menu, then select Prime Exclusive Discount. From the dashboard, select Create Discount and follow the prompts.
You can choose the discount start and end dates, unless your deal runs during Prime Day. Not all SKUs are eligible for discounts, so make sure to validate products to discover which ones are eligible. You’ll have to submit your deal for review before it’s activated.
Tips for managing deals, promotions, and coupons
As you build discounts into your sales strategy, here are some tips to keep in mind:
- Use a Money Off coupon for expensive items so it’s easy for customers to understand how much they’re saving without having to calculate the discount.
- Set your coupon duration for two to three months to give customers time to find it. All coupons expire after 90 days.
- Avoid unintended discount stacking. This happens when you add a coupon to a product that already has an active discount. This can lead to extreme discounts.
- Plan ahead for the busy holiday shopping season by running discounts ahead of key shopping days like Black Friday and Cyber Monday. You can also time your promotions against shopping events like Prime Day to help maximize attention on your offers.
- Set your discounts at a price that gives your customers a good deal, but still helps you turn a profit.
- Use cost-per-click (CPC) advertising to showcase your deals to Amazon customers.
Frequently Asked Questions
How can I give a customer a percentage-off discount in the Amazon store?
How can I create a discount code in the Amazon store?
What is the difference between an Amazon coupon vs. promotion?
A promotion can offer a percentage off for customers who buy multiple items; a social media promo code; or a buy one (or many), and get one free offer.