Amazon Coupons: A Step-by-Step Guide for Sellers

Elise Jackson

Post details

  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon Operations
  • DATE: 11/07/2024

In the competitive world of Amazon, you need to stand out to attract customers. One effective strategy is the use of Amazon coupons (or ‘vouchers’ depending on where you are selling – potato potato)!

Coupons not only boost product visibility but also encourage purchases and increase conversions. This step-by-step guide will walk you through the process of creating coupon codes on Amazon Seller Central, helping you leverage this strategically with your customers.

What are Amazon Coupons?

Amazon coupons are digital discounts sellers can offer to customers, providing a percentage or dollar/pound/euro amount off their products.

There are two ways to generate coupons for customers, via a link or clip coupons.

  • Link coupons: These are generated by getting the audience to click on a specific link to get the coupon. These usually require a customer to do an action and give a discount across the whole store, ie £10 off on your order when you spend over £60.
  • Clip coupons: These can be used on specific products, customers ‘clip’ them (like IRL coupons) and add them to your cart. Amazon has thousands of digital coupons to choose from and customers must have eligible items from your store in their cart to apply the coupons too.
  • Prime-only coupons: These are for the ‘Subscribe and save’ customers who wish to opt-in for repeat purchases.

 

There are two main types of coupons available on Amazon:

  • Money Off Coupons: Provide a fixed monetary amount or percentage off the product price.
  • Buy One Get One (BOGO) Coupons: Offer a free or discounted item when a specified quantity is purchased.

 

The benefits of using Amazon coupons include:

  • Enhanced product visibility: Coupons can make your listings more attractive and increase their chances of appearing in Amazon’s search results and promotional placements.
  • Encouraged purchases: Who doesn’t love a discount? They incentivise customers to buy, especially when they see immediate savings.
  • Boosted conversions: These can significantly improve the conversion rate of your product listings.

 

How to create an Amazon coupon (voucher)

1. Create a new coupon

To create and manage coupon codes on Amazon, you first need to access the Seller Central dashboard. Here’s how:

1. Log in to Seller Central: Use your seller credentials to log in.
2. Go to the advertising section: On the main dashboard, hover over the ‘Advertising’ tab and select ‘Coupons’ from the dropdown menu.
3. Click on the ‘Create a new coupon’ button.
4. Choose the products you want to include in your coupon offer. Make sure they meet Amazon’s eligibility criteria.
5. Decide on the discount amount (percentage or fixed dollar) you wish to offer. Amazon states that if a product is averaging 20 units per day without a coupon, and you want to run a £5 off discount for 10 days, your formula should look like this:

(# of days x # of average daily units) x (discount amount + redemption fee)

6. Set the start and end dates for your coupon. You can also limit the total number of redemptions or set a per-customer limit.

 

Psssst: Coupon requirements and new coupon pricing requirements updates 2024

These are the most up-to-date versions of the latest Amazon coupon pricing requirements.

 

As of March 18, 2024, coupons (vouchers) are subject to new pricing requirements, so read on if you weren’t aware!

Coupons are still required to have a discount percentage between the minimum (5% off) and maximum (50% off).

The majority of products will also be required to have a sales history before they are eligible to run and a promotion price lower than either the ‘Was Price’ or the recent lowest price.

If a product’s price or discount doesn’t meet these new requirements, it won’t be eligible for a coupon until all requirements have been met. If you receive a coupon error message, you can take the following actions:

  • Price history issue: To make this product eligible, create sales history by selling just one unit of the product to build the Was Price.
  • Increase discount: Make sure your promotion price is lower than the Was Price or the recent lowest price to make this product eligible.
  • Minimum/maximum discount issue: Update your sale price discount percentage to be between the minimum (5% off) and maximum (50% off) to make this product eligible.

 

2. Customise and optimise your Amazon coupon

Here are a couple of tips to optimise your coupon:

  • Make title and description appealing: Craft compelling coupon titles and descriptions to attract attention.
  • Relevant images: Use high-quality images that highlight the discount and the product.

 

Amazon Coupon

 

Customised discounts on products with brand-tailored vouchers – 2024 update
Marketplace: includes all markets

Brand-tailored coupons (vouchers) enable you to offer either percentage-off or flat-rate discounts to tailored audiences on a subset of your products.

When you create a standard coupon, you can now select Brand as the audience type and target your high-intent customers with any of the following tailored audiences:

  • Repeat customers
  • Recent customers
  • Brand cart abandoners
  • High-spend customers

In the US, you have additional audiences which are available*:

  • Brand followers
  • Top-tier customers
  • Promising customers
  • At-risk customers
  • Potential new customers

*Beta additional audience to trial how well this works for brands to use.

You can create tailored vouchers to engage with your loyal customers, increase awareness of new products, encourage repeat purchases and improve customer retention.

To be eligible to create a brand-tailored voucher, you must be a brand owner and have at least 5,000 customers in the respective audience. The standard voucher redemption fee still applies.

Amazon provides advanced settings to tailor your coupon:

1. Target specific customer segments: You can target your coupon to specific customer groups, such as Prime members.

2. Apply restrictions: Set conditions like a minimum purchase quantity or order value.

 

3. Preview and review coupons

Once you’ve created your coupons, before finalising, it’s crucial to:

1. Preview coupon details: Check how the coupon will appear to customers.

2. Review settings: Ensure all details, such as discount value and duration, are correct.

Double-checking these details helps avoid errors or misconfigurations that could impact your promotion.

 

4. Finalise and activate your coupons

Then, all you need to do is follow these steps to complete the process:

1. Confirm all settings and click ‘Submit’.

2. You can activate it immediately or schedule it for a future date.

And, voila!

 

5. Monitor performance

After activation, keep an eye on your coupon’s performance and be ready to make adjustments if needed to keep optimising the discounts! You can do this by viewing the usage and redemption rates and analysing the data with actionable insights to refine your future strategies.

 

6. Promote your coupons to customers

To maximise the impact of your coupons you want to promote them to customers. Here are some tactics we would do:

1. Incorporate coupons into your marketing campaigns: Feature them in your emails, social media posts, and ads to reach a wider audience and incentivise shoppers.

2. Highlight coupons in product listings: Ensure the coupon offer is visible on your product pages.

 

Our thoughts

Leveraging link, clip and prime-only coupons as part of your sales strategy can lead to significant benefits and competitive advantages on Amazon, so we highly recommend incorporating them if possible.

This speaks to the idea of attracting, converting, and retaining customers – the coupons help to attract and convert, and offering them to existing customers helps to retain them. They are also an effective strategy for you to stand out from the crowd which is especially important for the upcoming July Prime Day event!

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