Amazon Sellers: Ignite Your Sales with 8 Powerful Amazon Promotions Tactics

Amazon promotions are a valuable tool for sellers looking to increase sales. By offering discounts or special deals, sellers can attract customers, stimulate purchases, and ultimately boost their revenue.

However, like any tool, it's crucial to know how to wield Amazon promotions effectively. Keep reading to learn how to strategically use these promotions to your advantage. Feel free to share your insights and tips in the comments section, helping us build a knowledgeable community of sellers and enthusiasts.

Amazon Promotions: Learn The Basics

Amazon promotions, including coupons,  are marketing strategies that sellers can use to offer discounts or special deals on their products and can lead to increased sales. Coupons not only offer a discount but also make your product stand out visually among competitors, particularly in search results where customers compare multiple items. A modest discount, such as five percent, can be effective in attracting customers without significantly impacting profit margins.

Scenarios For When It’s Ideal To Run Amazon Promotions

Amazon sellers should consider using promotions in the following scenarios:

• Slow Business Periods: Promotions can help boost sales during slow periods by attracting both existing and new customers.
• Product Launches: Use promotions to generate buzz and attract initial customers for a new product.
• Clearing Excess Inventory: Offer discounts to quickly sell off excess inventory and free up storage space.
• Competing with Similar Products: Use promotions to make your product stand out among competitors, especially if they are offering discounts.
• Encouraging Repeat Purchases: Offer promotions to existing customers to encourage them to make additional purchases.
• Seasonal Sales: Use promotions during holidays or special events to capitalize on increased shopping activity.
• Driving Traffic to Listings: Promotions can help increase visibility and drive traffic to your Amazon listings.

Considerations for Successful Amazon Promotions

• Visibility: Ensure customers are aware of your promotion. Use social media campaigns to drive traffic to your offer.
• Urgency: Create time-sensitive offers to capitalize on customers' fear of missing out.
• Value: Offer promotions that provide sufficient value to influence the customer's purchasing decision. Use sales data and feedback to refine your offers.
• Review Guidelines: Promotions cannot be used as an incentive for customer reviews. Reviews for purchases made with promotions may not receive the "Amazon Verified Purchase" badge.
• Category Restrictions: Certain product categories, such as Books, Music, Video, DVD (BMVD) products, and Wine, are excluded from some promotional offers.

Amazon Promotions: Run The Right Promotions At The Right Time

Before setting up your Amazon promotions, it is important that you know the type of promotion you need to set up

Social Media Promo Code

• It is a discount code that sellers can create to offer special deals or discounts to customers on social media platforms. 
• To generate, log in to your Seller Central account and navigate to Advertising > Promotions. 
• The promo code can then be shared on social media channels or through email campaigns to attract customers and drive sales.

Buy One Get One (BOGO)

• This promotion allows customers to receive a free item when they purchase a specified quantity of items. 
• You can specify the quantity of items customers need to purchase to qualify for the free item, as well as set the start and end dates of the promotion. 

Percentage Off

• This promotion enables you to offer customers a discount on your products, expressed as a percentage of the original price. 
• Incentivizes customers to purchase products by offering them a reduced price. 

Factors Affecting A Seller’s Decision On Which TYpe Of Promotion To Run

• Business goals: Sellers may set up promotions to achieve specific business objectives such as increasing sales, launching new products, or clearing out excess inventory.
• Product type: The type of product being sold can influence the type of promotion. For example, a percentage off promotion might be more effective for higher-priced items, while a buy one get one free promotion might work well for consumable goods.
• Competitive landscape: Sellers may use promotions to stay competitive with other sellers offering similar products.
• Seasonality: Promotions can be timed to coincide with seasonal trends or holidays when consumer demand is high.
• Inventory levels: Promotions can help sellers move excess inventory or boost sales during slow periods.
• Customer behavior: Sellers may consider customer preferences and purchasing habits when deciding on promotions. For example, offering a discount to repeat customers can help build loyalty.
• Cost and profitability: Sellers need to consider the cost of the promotion and its impact on profitability. Some promotions may be more cost-effective than others.
• Promotional effectiveness: Sellers may track the performance of past promotions to determine which types are most effective in driving sales and achieving their goals.

Here's an ideal timing guide for running each of these Amazon promotions

Social Media Promo Code

• Ideal for promoting new products or clearing out old inventory.
• Run during peak shopping seasons or holidays to maximize visibility.
• Use social media channels with high engagement to reach a larger audience.

Buy One Get One (BOGO)

• Effective for moving slow-selling items or boosting sales during slow periods.
• Use BOGO promotions to upsell or cross-sell related products.
• Consider running BOGO promotions during holidays or special events to increase sales.

Percentage Off

• Offer percentage-off promotions to attract price-sensitive customers.
• Use percentage-off promotions to drive sales for high-margin products.
• Run percentage-off promotions during clearance sales or to generate buzz for new products.

Amazon Promotions: Know How To Set Up Promotions

1. In Seller Central, navigate to Advertising > Promotions

2. Choose which type of promotion you need to create.

3. Regardless of what type of promotion you are creating, you must determine the information to enter in the three crucial sections: Conditions, Scheduling, and Additional Options. 

Under Conditions, you need to enter:

• Buyer purchases - the purchase threshold that will qualify a shopper for the promotion.
• Purchased Items - options will differ in each promotion type
• Buyer Gets - options will differ in each type of promotion 
• Applies To - options will differ in every promotion type
• Add a Budget

Under Scheduling, 

• Specify the start date and time, ensuring it is at least 4 hours in the future and falls within 90 days of the creation date. 
• Establish the end date and time, which must be within 180 days of the start date. 
• Create a Promotion Title to identify your promotion, which will only be visible to you.

In the Additional Options section, 

• You have the option to generate a claim code or add a message for your promotion (optional). If not, proceed with the remaining steps below.
• All new promotions that include a claim code will be set to Preferential for Claim Code Combinability.
• Click on Review to verify the details of your promotion. 
• To make any modifications, click Back.
• Click Submit to complete the creation of your promotion.

Let’s take a look at how these sections differ.

To Set up a Social Media Promo Code

Conditions:

• Buyer Purchases - “At least this quantity of items” - 1
• Purchased Items - list up to 10,000 ASINs
• Buyer Gets - Percent off (set between 1 and 50%)
• Applies To - Purchased Items

Scheduling:

• Start and End Dates
• Promotion Title
• Amazon-generated Tracking ID

Additional Options:

• Claim Code Type - Group (There are no limits on the quantity of group claim codes; you cannot manage how many customers can redeem them before the promotion ends.)
• Share this promo code with - You can uncheck the option to share the code with Amazon Influencers and Associates. There is no guarantee of placement even if you opt in.
• Redemptions per customer - One unit per order: for use only once on one unit of an eligible ASIN.Unlimited units per order: for multiple units of eligible ASINs in a single order.Unlimited units across unlimited orders: for unlimited units of eligible ASINs across multiple orders.

• Claim Code - Enter a customized code consisting of 8-12 characters, including the numeric prefix.

To Set Up A BOGO

Conditions:

• Buyer Purchases - “At least amount (in $)” -  triggered when a customer spends a specified amount or more on eligible items in a single order.“At least this quantity of items” - activated when a customer buys a set quantity of eligible items in a single order. The quantity must be a whole number.“For every quantity of items purchased” - certain number of items that a customer buys.
• Purchased Items - ASIN List to input a list of ASINs, one per line, up to 10,000 entries.SKU List to input a list of SKUs, one per line, up to 10,000 entries.Entire Catalog to include all items in your inventory.
• Buyer Gets - Free Item
• Applies To - Purchased ItemsAdditional Item - Enter the free ASIN under the additional item condition.
• Set your budget - Your promotion will go offline when it reaches 80% of the allocated budget.
• Buyer benefit applies to a quantity of - shopper will get the free item when they buy the set number of items

Scheduling:

• Start and End Dates
• Promotion Title
• Amazon-generated Tracking ID

Additional Options:

• Claim Code Type - Single, Group, or None

• Show promotion on detail page - you may choose not to

To Set Up Percentage Off

Conditions:

• Buyer Purchases - “At least amount (in $)” -  triggered when a customer spends a specified amount or more on eligible items in a single order.“At least this quantity of items” - activated when a customer buys a set quantity of eligible items in a single order. The quantity must be a whole number.“For every quantity of items purchased” - certain number of items that a customer buys.
• Purchased Items - ASIN List to input a list of ASINs, one per line, up to 10,000 entries.SKU List to input a list of SKUs, one per line, up to 10,000 entries.Entire Catalog to include all items in your inventory.
• Buyer Gets - Percent off (set between 1 and 50%)
• Applies To - Purchased ItemsAdditional Item - Enter the free ASIN under the additional item condition.
• Set your budget - Your promotion will go offline when it reaches 80% of the allocated budget.
• Tier - Buyer purchases a minimum number of items and gets the percent off

Scheduling:

• Start and End Dates
• Promotion Title
• Amazon-generated Tracking ID

Additional Options:

• Claim Code Type - Single, Group, or None

• Show promotion on detail page - you may choose not to

Amazon Promotions: Decide On Whether To Use A Claim Code

Claim Codes Functionality

• Claim codes enable discounts on orders, requiring buyers to enter them at checkout.

Promotion Configuration

• You can choose whether a claim code is necessary for your promotion.
• Requiring a claim code can limit redemption to one per buyer or allow for multiple codes for increased savings.

Combining Promotions

• Promotions without claim codes will combine with others without claim codes.
• Promotions requiring claim codes will combine with those without claim codes and some or all promotions with claim code requirements.

Combining Claim Codes

• Buyers can combine claim codes for greater discounts.
• Caution is advised when allowing multiple claim codes, as it can lead to unintended discounts.

Amazon Promotions: Know That You’ll Pay A Referral Fee

Referral Fees Overview

• Amazon deducts the referral fee percentage from the total sales price, excluding taxes calculated through Amazon tax services.
• The total sales price includes the item price, delivery charges, and gift wrapping charges.

Referral Fees for Promotions

• Orders with promotions are charged a referral fee based on the total sales price after applying the promotion.
• The total sales price includes the product price, shipping, gift wrap, and other charges.
• Some product categories may have a minimum referral fee for all items in the order.

Example Scenarios

• If a buyer purchases product "A" and receives product "B" for free, the referral fee is based on the total sales price of product "A."
• If there is a discount on product "A," the referral fee is based on the total sales price after applying the discount.

Want to know about the latest on Amazon Referral Fees? Here’s a video you can watch

Amazon Promotions: FAQs

1. What data does the change history track for promotions and product selection lists?

• The change history tracks who made the change and when it was made.

2. How can I view the change history for a promotion?

• Go to the Advertising tab, select Promotions, click Manage Your Promotions, then click the Tracking ID for the promotion you want to view, and select View Change History.

3. What does the Promotions Report show?

• The Promotions Report shows the promotions applied to Fulfillment by Amazon (FBA) customer orders sold through Amazon.

4. What aspects of a promotion can be edited after creation?

• Many aspects of a promotion can be modified, except for the promotion type, qualifying conditions, buyer benefit, start date (after the promotion has started), name of the product selection list, claim code required setting, and change notes (audit log).

5. How can I edit a promotion?

• On the Advertising menu, select Promotions, click Manage Your Promotions, click the Tracking ID for the promotion you want to edit, click Edit this promotion, make changes to the required fields, click Review, and then click Submit.

6. Where does promotional messaging appear?

• Promotional messaging appears on the detail page when your offer wins the Buy Box or at checkout.

7. What options do I have for promotional messaging?

• You can select None (turns off promotional messaging), Standard (default detail page text), or Customized Text (displays your custom message).

8. How can I duplicate an existing promotion?

• Click Advertising, select Promotions, click Manage Your Promotions, click the Promotion Title for the promotion you want to duplicate, then click Duplicate this promotion.

9. How can I end or cancel a promotion?

• To end an active promotion, go to Advertising, select Promotions, click Manage Your Promotions, click the Tracking ID for the promotion you want to end, and then click End this promotion.

Note: For detailed instructions and to ensure the accuracy of your changes, always review your promotions before submitting them.

Amazon Promotions: Challenges Sellers Encounter

• Promotion not generating expected sales: Sometimes, despite running a promotion, sellers may not see the desired increase in sales. This could be due to ineffective promotion messaging, incorrect targeting of the promotion, or lack of visibility to the target audience.

Instead of running promotions, Steven Pope describes another tactic. Watch this video to learn what it is

• Difficulty in setting up promotions: Setting up promotions on Amazon can be complex, especially for new sellers. Understanding the different promotion types, eligibility criteria, and setting up the promotion correctly can be challenging.
• Managing inventory levels: Running promotions that generate high sales volume can lead to inventory issues if sellers do not manage their inventory levels effectively. This can result in stockouts or overstocking.
• Competition and price wars: In highly competitive categories, sellers may find themselves in price wars, where competitors continuously lower prices to match or beat each other's promotions. This can erode profit margins and devalue the products.
• Promotion abuse: Some customers may try to take advantage of promotions by using multiple discounts or claiming promotions fraudulently. Sellers need to monitor and prevent such abuse to protect their margins.
• Technical issues: Sellers may encounter technical issues when setting up or running promotions, such as errors in promotion codes, tracking issues, or difficulties in accessing promotion reports.
• Compliance with Amazon's policies: Sellers must ensure that their promotions comply with Amazon's policies and guidelines. Failure to do so can result in penalties or the suspension of their seller account.
• Limited promotion visibility: Even with a well-planned promotion, sellers may struggle to reach their target audience due to limited visibility on the Amazon platform. This can be especially challenging for new sellers or those with low product rankings.
• Effectiveness of promotion strategy: Sellers may find it challenging to determine the effectiveness of their promotion strategy, such as which types of promotions work best for their products or how to measure the ROI of their promotions.
• Managing customer expectations: Promotions can create expectations among customers for future discounts or lower prices, making it challenging for sellers to maintain regular pricing and profitability.

Amazon Promotions: Brand Tailored Promotions

If you are brand registered on Amazon, there is another type of promotion that you might want to take advantage of: Brand Tailored Promotions.

Brand Tailored promotion allows brand owners and selling partners to create exclusive discounts for customers who follow or buy from the brand, helping to build loyal relationships and increase conversions.

Eligibility:

• Available to registered brand owners on Seller Central.
• To check eligibility, visit Amazon Brand Registry.

Audiences Supported:

• Repeat customers: Ordered brand products more than once in the last 12 months.
• Brand cart abandoners: Added brand products to cart in the last 90 days but haven't bought yet.
• Potential new customers: Clicked on brand products or added to cart recently (90 days) but haven't bought in the last 12 months.
• High spend customers: The highest spending 5% of your brand’s customers in the last 12 months.
• Recent customers: The most recent 5% of customers who have bought from your brand.
• Brand followers: Clicked to "follow" this brand on Amazon.
• Top-tier customers: Bought recently and spend the most, buying frequently.
• Promising customers: Bought recently, buy occasionally, and spend above average.
• At-risk customers: Haven’t bought recently nor frequently, with varied spend.

Audience Size:

• The number of customers that match the audience criteria.
• Audiences with a size of 1,000 or more are eligible for tailored promotions.

We have a comprehensive blog post that can teach you more about Brand Tailored Promotions.  Make sure to read Brand Tailored Promotions to Skyrocket Your Amazon Success: Personalize Discounts and Cultivate Customer Loyalty.

Need help with applying to Amazon’s Brand Registry or implementing Amazon promotions? The expert team members of our Amazon Agency can help you.

Conclusion

Amazon promotions can be a powerful tool when used strategically. Sellers should carefully consider their goals and target audience when planning promotions. 

Whether it's boosting sales, clearing out inventory, or increasing brand visibility, promotions can help achieve these objectives. By analyzing data and monitoring performance, sellers can fine-tune their strategies to maximize results. 

Share your success story, learning journey, or updates on Amazon promotions with us! Subscribe to Amazon Selling Chronicles to stay updated on the latest strategies and tips. Imagine seeing a 30% increase in sales after implementing a targeted promotion based on insights from our articles. That could be your success story too!