Deals: Lightning Deals, 7 Day Deals, Deals of the Day
How they work: A certain % discount across a specific time period
Good if your objective is to: Increase sales velocity in a small time window and sell-through overstock
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 sales in the US, consistently drives 5-8x daily revenue on Prime Day, Black Friday & Cyber Monday due to the Lightning Deals we run with them (on Prime Day 2020 we hit $138k daily revenue). In addition, there’s a halo effect on the days after the deal, because of the increased sales velocity, rank & visibility from the deal.
How they work: Buy one, get your second 10% off, or buy item X, get item Y 20% off
Good if your objective is to: Drive upsell & cross-sell of 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.
Vouchers & Coupons
How they work: %- or $- amount off for a certain time period
Good if your objective is to: Improve click-through rate (CTR) & conversion rate (CR) on specific products
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.
The main aim of the game when using deals and promotions is to understand your brand’s objective for running them. Are they right for you? Should you consider running promotions during specific seasons? These are the questions you should be asking yourself. If you are looking for help with tailoring your strategy to run in conjunction with your Amazon advertising, let’s hop on a call to chat!