Amazon deals

What are Amazon deals?

Amazon deals are much like any other retail deals – they offer a certain % discount across a specific time period.

This is great if your objective is to increase sales velocity in a small time window and sell through overstock.

There are a few types of deals you can do:

1. Lightning Deals: Limited-time promotions offering significant discounts on specific products, usually for a few hours.
2. Deals of the Day: Daily offers featuring major discounts on selected items for a 24-hour period.
3. Best Deals: Extended promotions offering significant discounts over several days or weeks.
4. 7 day deals: Deal that runs for 7 days instead of a 4-hour window, it’s great for those looking for a long-term conversion boost.
5. Top deal: Customers recognise Top Deals as Amazon’s most exciting products offered at spectacular discounts during Prime Day.

Tip: Utilise deals on key dates.

Deals are great for key sales days across the year, such as Prime Day, Black Friday and Cyber Monday.

They can help drive a significant velocity of sales during key high season periods, especially across certain items where a consumer’s mindset is in the “I would like to try that” stage when the likelihood for impulse purchase is higher/increased.

One of our clients, who averages $16k/day in sales in the US, consistently drives 5-8x daily revenue on Prime Day, Black Friday & Cyber Monday due to the Lightning Deals.

In addition, there’s a halo effect on the days after the deal, because of the increased sales velocity, rank & visibility from the deal.

But – before you get started, take note:

1. There’s a fee associated with Deals: It is £25 for normal dates, and £50 for big seasonal events such as Prime Day, so take that into account when running them!
2. Not every product is eligible: It’s not that unlikely that Sellers don’t have any product eligible for deals, mostly Sellers with lower revenue. Even Sellers driving healthy revenue sometimes struggle to see their best-selling products eligible for deals
3. There is a minimum discount amount: You have to have deals with a discount of 15% or more.

How to set up an Amazon deal

1. Go to Seller Central, navigate to the advertising section and click ‘deal’
2. In the Deals Dashboard click “Create a new Deal”, choose an eligible product and click “Select”
3. Enter the schedule and click “Continue to next step”. For Lightning Deals, complete the “Deal Price” or “Discount per unit” and “Minimum deal quantity” field. For 7-day Deals complete the “Deal price” or “Discount per unit” fields
4. Choose and select the main product’s image that will be featured on the Amazon Deals page and click “Continue to next step”
5. Review the fee for your deal, fees are charged after your deal finishes running
6. Review each section for accuracy and click “submit deal” to submit the deal for review. For Lightning Deals click “Advanced Edit” to arrive at the “Create a Lightning Deal” page where you can edit additional fields like product variations

Promotions

What are Amazon Promotions?

Similar to how you see in shops where there are promotions that entice customers to spend some more to get a deal on products.

This is great if your objective is to drive upsell & cross-sell your products. These types of promotions won’t particularly drive significant quantities of sales, but they are definitely still worth setting up.

They will help you to drive upsell & cross-sell activities across your product range which is great for increasing your average order value, enticing customers to try a complimentary product or introducing a new product to your range. They may also be particularly useful when launching a new product.

How to use Amazon promotions –

You could use these as some examples of promotions you can run:

1. Buy one get your second unit at 50% off.
2. Buy one get one free
3. If you spend over £100 you’ll get 10% off your next order.

How to set up Amazon Promotions

Go to Seller Central and navigate to promotions, then you will want to choose from the following options to set up your promotion.

Remember: have a look at your inventory and see which SKU’s you have the capacity to run promotions on, you don’t want to have low inventory while running a promotion.

Brand Tailored Promotions

This type of promotion allows brands to target a specific audience connected to the brand! You can offer promotional discounts ranging from 10% to 50% off on all products to specific customer types to boost customer conversions, repeat purchases, and customer retention rates.

Here’s a breakdown of the audience types you can tailor promotions to:

1. Brand Followers: These are customers who follow your brand in the Amazon store.
2. Repeat Customers: Exactly as how it sounds, this is any customer who has ordered one of your products more than once in the last 12 months.
3. Recent Customers: Anyone who has recently purchased from your brand.
4. High-Spend Customers: Those who have spent the highest amount with your brand in the last 12 months.
5. Potential New Customers: These are customers who have interacted with your brand and products but may not have purchased.
6. Cart Abandoners: Customers who have added your brand’s products to their cart, but haven’t purchased.

Other types of discounts

1. Sale price Discount

This is a discount set up in the backend of a product and is the easiest way to set up a % discount. You can set the price lower than your sale price for a certain time period.

2. Prime Exclusive Discounts:

These are discounts exclusive to Prime Members. They don’t have any fees like the deals and still have a lot of visibility during seasonal events, so they work really well during Prime Day and Black Friday!

They typically display strike-through-pricing, and on Prime Day, they display the Prime Day Deals badge.

To be eligible to set up Prime Exclusive Discounts, your products must meet the following criteria:

• Must be in new condition
• You need to use Fulfilled by Amazon
• Discount must beat the lowest price in the past 30 days
• The discount must be 10% – 80% off of your listed price. For a Prime Day discount, it must be 20% – 80% off your listed price
• Have 3-star ratings or above
• Not a restricted or offensive product

Vouchers & Coupons

What are Amazon vouchers?

Amazon vouchers (or the American version is coupons, but they are the same) are digital discounts sellers can offer to customers, providing a percentage or dollar/pound/euro amount off their products.

This is great if your objective is to improve the click-through rate (CTR) and conversion rate (CR) on your Amazon products.

There are two ways to generate vouchers 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 vouchers available on Amazon:

• Money Off Vouchers: Provide a fixed monetary amount or percentage off the product price.
• Buy One Get One (BOGO) Vouchers: 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.

For a full breakdown of these, check out this guide to using Amazon vouchers for sellers.

Real-world tip: At Unicorn, we tend to use these when a product is in its launch phase. Vouchers are visible on the search results page, so are a visual marker to help drive click-through from the search results to your product page, and then conversion.

How to set up an Amazon Voucher

1. Log in to Seller Central

2. Go to the advertising section: On the main dashboard, hover over the ‘Advertising’ tab and select ‘Vouchers’ from the dropdown menu.
3. Click on the ‘Create a new voucher’ 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.

Our thoughts

Like with selling products off Amazon, the way to entice new customers and nurture current ones is to run deals, promotions and vouchers.

When creating your Amazon deal, promotion or discount, think about your overall objective for wanting to use them, and run a deal, promotion or voucher based on that. You also need to understand if they are right for your brand, so as well always, do some research before and take your time with them – you don’t want to accidentally do the wrong promotion and it turns out badly.

Who we are

We aren’t your typical agency. We truly partner with the brands we work with; your success is ours. We bring creativity, enthusiasm, and innovation to every brand we partner with. We aren’t afraid to tell you what’s wrong, and we will always share what can be done better. We strategise together: We are consultants, advisors and Amazon experts here to help you on your journey. Our expertise is an extension of your team; we are your Amazon partner.

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