Everyone loves a sale! Whether it’s Prime Day, Black Friday, your brand’s birthday, or just Tuesday, there’s always an excuse to run a promotion and drum up excitement with your customers.
Amazon loves a sale too, which is why they give sellers the tools to run a range of different promotions for their Amazon products from within Seller Central.
Read on to learn why promotions are an effective tool to grow your Amazon business, and how to set up a few different types of promotions.
What Are Amazon Promotions Good For?
In a competitive landscape like Amazon, promotions are a great marketing tool, which help you stand out from the crowd and generate buzz about your products. There are a number of ways well-timed and well-executed promotions can help you grow.
For a start, promotions are a great sales driver. They get people excited to spend money. Many people can be convinced to spend money they weren’t otherwise, just because they have a discount code.
They also help you increase your average order value, by getting customers to spend more, with promotions like Buy One Get One or “Buy Together” promos (buy Product A, get Product B at half price).
Promotions are also a great way to build an audience. You can use a discount code as an incentive for people to opt in to your email list, or on ManyChat. This optin (i.e name, email address) will provide value well after the original sale is done.
It’s usually not feasible to run promotions all the time – you still need to make a profit after all. But well-planned promo can have a bigger effect than just the dollar amount in profit from that sale.
How to Create a Promotion on Amazon
Here are a few of the options you have for promotions on Amazon, and how to set each one up.
To create a promotion on Amazon, log in to your Seller Central account, then go to the Advertising menu, and click Promotions.
Before you get started you may want to create a product selection, if you plan to run promotions targeted to a group of products. This will allow you to quickly and easily add a number of products to a promotion, rather than selecting each product individually.
To do this, hit “Manage Product Selection”, then “Create Product Selection”. Then just add whichever SKUs, ASINs or product segments you want to include (such as products from a certain brand), and hit “Submit” to finish.
How to Set Up your Amazon Promotions
Now choose what kind of promo you want to set up.
This promotion will give customers a discount on one or more products.
You can choose your codes to be either single-use (unique codes that expire after one redemption) or “Group” (one multi-use code that can be used over and over). Single-use codes are best for high-value promotions, as they help you control how many discounted units you end up selling.
To set up a Percentage Off promotion, first go to the Promotions page in Amazon Seller Central.
Click “Create a Promotion”, then the button under “Percentage Off”.
Step One: Conditions
The first step is to manage your promotion conditions. This includes:
- How many items must be purchased before the promotion can be applied
- Which products must be purchased
- Discount amount
- Which products the discount applies to
You can use the Advanced Options to set up a tiered discount – for example, buy one unit get 5% off, buy two get 7% off, and so on.
Step Two: Scheduling
Now set up your scheduling and tracking.
- Set a start date and end date for your promotion (if someone tries to apply the code outside these dates it will say the code has expired)
- Choose a description for your promotion
- Select a tracking ID
Make sure to set clear descriptions and tracking IDs for your promotions, as this will help you analyze and organize your promotions.
Step Three: Additional Options
At the final section you’ll set up your claim code(s).
First, choose from the following options:
- Single-use codes (each code is unique and can be used only once)
- Group code (no limit to how many times it can be used)
- No claim code at all (the product will be discounted automatically).
Then choose whether to restrict your promotion to one redemption per customer or not (relevant for group codes or no claim code option).
If you go with a group code, you can customize your code here, or generate a random code.
Next, if you choose to go with claim codes, you will choose your claim code combinability settings: Preferential, or Unrestricted.
This is important if you have multiple promotions running at the same time. This setting will dictate how your promotions will work with each other.
“Preferential” means customers can only claim one promotion – the one with the highest value will be applied.
For example, if you have a single-use code for 50% off and a group code for 25% off, the single-use code will be applied (and the group code will not)
“Unrestricted” means there are no restrictions, and customers can claim more than one promotion on the same order. In the above example, a customer would be able to get 75% off by using both codes together.
Finally, you can customize the messaging on your product page and in the checkout. For example, what message shows up when someone redeems the promotion, and what (if anything) to display on your detail page.
Most of this can be left as the default. The most important thing to take note of is the “Detail page display text” option. If this is selected, it will show the code and redemption instructions to everyone who comes to your product detail page.
If you want to use your promotion as an incentive, and don’t want it to appear for everyone, make sure to unselect this.
Buy One Get One
BOGO promotions are a great way to drive sales, move more products and generate excitement about your brand. It’s usually a more aggressive strategy than a Percentage Off promotion, but good for when you need to clear through excess inventory, or you’re trying to capture leads.
Most of this you’ll set up just like a Percentage Off promotion. Go to the same place – Advertising, then Promotions – to start with. Then choose “Buy One Get One”.
The difference here is the “Conditions” step. You’ll need to configure how your promotion will work.
Now set up the follow options:
- “Buyer purchases”: either a certain quantity of items (e.g. 1 Product A), or a specific dollar value ($15 of Product A)
- “Purchased items”: which product(s) are included
- “Buyer gets”: this will be limited to “Free items” for this type of promotion
- “Applies to”: keep as “Purchased items”
- “Buyer benefit applies to a quantity of”: this is where you set up the specifics of your deal. For example, the buyer gets 1 free product when purchasing 1 unit.
The rest of your promotion will be set up the same as above. Set up your scheduling and tracking at step two and promo code settings under “additional options”.
Be sure to choose the correct Claim Code Combinability option if you’re running another promotion (such as a Percentage Off promotion) at the same time.
Once again, most of this is the same as the two previous promotion types.. Get started by choosing “Free Shipping” from the promotions menu in Amazon Seller Central.
The difference here is the “Buyer gets” field will be set to “Free shipping”. You also have a “Qualifying Shipping Options” box, where you will decide which shipping options qualify (for example, you may have an express shipping option that you want to exclude).
All your other conditions, scheduling and additional options are the same.
Free Shipping promotions can be effective for merchant-fulfilled sellers, as an alternative to Percentage Off. Even though the customer may be saving the same dollar amount, the words “Free Shipping” just hit differently.
This type of promotion may not be so useful for FBA or Prime-eligible sellers though, as these products may already have free shipping available.
Social Media Promo
Another type of Amazon promotion is the Social Media Promo Code.
This promotion works like a Percentage Off group claim code. However, instead of putting in the code themselves at checkout, the customer is sent to a promotional landing page on Amazon, where they can choose to add your product to their cart. When they do so from this page, the discount will be applied automatically.
If you qualify, you’ll see this option beside the others on the Promotions hub in Seller Central.
The setup follows the same flow as the others – first set your conditions, then scheduling, then claim code settings.
This type of promotion is a group claim code by default.
You can also choose how many times a customer can redeem the promo:
- One unit/one order
- Unlimited units, but just one order
- Unlimited units and unlimited orders
With a social media promo, if you choose multiple products to include in the promotion, all these products will show in the landing page for your promotion. This can make it a great way to drive people to buy more than one product from your catalog.
Amazon Coupons vs Promotions: What’s the Difference?
Coupons are another way to set up promotions for Amazon products.
Amazon Coupons (often confused with Percentage Off promos) are featured on Amazon’s deals page, as well as on your product detail page, where anyone shopping on Amazon can “clip” the coupon and get the discount.
On the other hand, the promotions we’ve talked about in this post require the customer to enter a code at checkout.
To decide on coupons vs promotions, you’ll usually want to think about the primary source of your traffic and the goal of your promotion.
Claim code promotions are generally better if you’re running external traffic campaigns, as you can control the quantity of items you are discounting, as well as being able to use the discount as an optin incentive.
Coupons can be a better option if all your traffic comes internally on Amazon, and you’re looking to increase visibility and drive more sales to get stock turning over.
Driving Traffic to Your Promotion
Promotions are best used as incentives, for people to click through from paid ads or external traffic sources, as well as to capture email addresses and build a list.
For this reason you’ll almost always want to use claim codes for your promotions, rather than displaying the promo on your product detail page.
(The exception may be if you’re just trying to clear out a bunch of stock quickly).
You’ll want to use the promotion, whether it’s a discount, free shipping offer or BOGO, as something shiny to make your ads stand out on whichever platform you’re advertising on.
This way, you’re using your promotion as a carrot to entice people to join your email list, or interact with your Messenger bot (thus joining your ManyChat audience).
The value of a subscriber, who you can follow up with and market to in the future is incredibly underrated. Almost all of the time, the value of each subscriber you add to your list will more than make up for any profits lost when discounting your product.
Here’s an idea of the kind of funnel you’ll build for your promotion.
With a funnel like this, not only will you get products moving faster and generating more revenue, you’ll build powerful assets you can use to boost your marketing efforts in the future.
Seller Promotions Dos and Don’ts
Here are a few things Amazon sellers should make sure to note when running a promotion set up in Seller Central.
->Don’t: use promotions as an incentive for people to leave reviews.
Example: offering a 25% discount on someone’s next purchase when they leave a review. Incentivizing reviews in any way is against Amazon’s Terms of Service, and is going to get you banned or suspended.
->Don’t: ask for reviews on promotional sales (unless it’s a small discount).
Be aware that too many reviews coming from highly discounted sales can trigger an automatic block on your reviews, even if you’re not using the discount as an incentive. If you get a few reviews that’s fine, but try not to specifically target these customers with review requests unless the discount is less than 30% off.
->Do: have a plan.
Do you want to build up a list? Are you trying to increase rankings? If yes, for which keyword?
Think about why you’re running this promotion and what you want to achieve. That way you’ll know if it was a success or not.
->Do: have a budget.
Be aware of the cost of your promotion, and factor that into your budget. If you’re only just getting by, a whole lot of sales on heavy discounts could leave you unable to order more stock. Know how many discounted units you can afford to sell, and for how long.
->Don’t: use deep discounts (80% or higher).
Not long ago, the best way to rank was to give away products by using 99%-off discount codes. However, Amazon appears to have severely decreased ranking power for high discounts like this. The sweet spot today is around 30-50%, to where you can still see a boost in rankings.
It’s still within Amazon TOS to give out high-value discounts or give away free products, but the effectiveness of this is quite low. You’ll probably be making a loss on your sale, and you won’t get much, if any, ranking boost.
The only reason you’d want to do this is to build up an email list fast (even in this case, our data shows that email optin % on landing pages drops off for discounts more than 70%).
Amazon Seller Central Promotions: In Summary
Amazon seller promotions such as Percentage Off, BOGO and Free Shipping are an excellent way for a seller to move more products and grow their business.
All the promotions you can set up in Seller Central go perfectly with external traffic campaigns run with LandingCube. With a killer discount to offer, you’re going to find it much easier to encourage shoppers to click through from your ads, opt in to your email list, and last but not least, buy your product.
You can try LandingCube completely free for 21 days and get more out of your Amazon promotions with a landing page funnel.