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Amazon Promotional Coupons - A Beneficial Strategy for Q4

No matter where you sell, one of the most powerful marketing types is also one of the easiest to set up and manage. This promotion type, also known as coupons in the US and vouchers in the UK, may boost your exposure to attract visitors, beat out the competition with a compelling offer, convert purchases, and boost customer ratings and loyalty. Here are some fundamentals and pointers for properly operating coupons and vouchers. We recommend taking advantage of this type of promotion all year long. However, it is particularly effective in Q4 on Amazon, and it is frequently employed on Black Friday and Cyber Monday.

Creating a Promotion

Coupons are applicable for a wide range of products and categories, are straightforward to make, and may be used for a variety of time spans. They can be set up as a percentage off, a dollar amount off, or a pound amount off the standard price. When a customer adds a purchase to their cart/basket, they "clip" the coupon/voucher. When you can run a minimum of a 20% discount off the current price, products will be eligible for this campaign type. Positive product reviews and ratings are also essential. Vendors and sellers from all locations are welcome to participate in this deal type.

What You Get Out of Running Promotions

In only a few minutes, you can create coupons and vouchers. They have the potential to be extremely successful. According to Amazon, sellers who use coupons/vouchers see an average of an 11% increase in sales. The higher the discount, the more exposure your brand will get. On the coupons home page, category pages, and peak events sites, the most popular coupons are also merchandised. Even smaller coupons are presented with a green badge on every search and browse page.

These savings can be reflected in your Amazon Advertising campaigns, Amazon Posts, and Brand Stores, allowing you to attract more customers to your listings. Some buyers are drawn in by the coupon designation on search and browse sites, but do not clip the coupon before making a purchase. This means customers pay your standard pricing and don't have to pay a redemption fee, but you still get a bump in traffic from the coupon's simple appearance. On the setup page, businesses may choose whether coupons/vouchers have unlimited redemptions or only one per consumer. This is something to think about while you prepare your promotions. For minor price drops that run continually, unlimited redemptions work well, while greater price drops during specific periods may necessitate the limitation. If you can test what works for your products and brands, that's even better. Some brands fare better with a dollar or pound price cut, while others do better with a percentage drop. Depending on your price range, you might have better luck with a higher or lower amount. If you wish to run a coupon/voucher campaign, you can always start by pricing your products somewhat higher.

Things to Consider

There are a few things to keep in mind when using coupons and vouchers. While there is no upfront cost to conduct this type of campaign (unlike Lightning Deals), Amazon will charge you a redemption fee for each clipped coupon.

  • In the US: Standard fees are $0.60 per redemption.

  • In the UK: Standard fees are £0.45 per redemption.

Depending on the time of year and the product type, these costs may differ. You have a maximum of 90 days to set up your deal. However, if your costs become excessive, you can turn it off at any time (for sellers only). Both merchants and sellers must ensure that they have enough inventory to support whatever coupon they choose to run. A 21-day advance period is sufficient for putting up a coupon for vendors. Amazon will have more time to modify inventory and increase POs as a result of this. There is a section to enter your budget when you create the coupon or voucher. Amazon prefers that you establish an overall budget for the coupon, which is the utmost amount you are willing to spend (including fees and the discount). If you spend 95% of your budget before the promotion's end date, Amazon will take it down as a precaution to ensure you don't go over budget. For instance, let's say your item is $50. You run a 25% off coupon, allowing people to purchase the item for $37.50. Each unit would “cost” $13.10 against your budget with a $.60 redemption. If you select a low budget, say $500 in this case, you will quickly approach your limit and the coupon will be switched off, around 38 redemptions.

A coupon/voucher is a low-risk approach to test the waters whether it's your first Q4 or you're concerned about submitting the larger offerings for Black Friday and Cyber Monday. They are simple to run and obtain approval for. They also allow you to take advantage of increased traffic to your site throughout the Christmas season without putting too much pressure on yourself. The dashboards in Seller Central and Vendor Central makes it simple to track progress. You may see your messaging, as well as the number of redemptions your coupon/voucher received, as well as your total expenditure and sales. You may also track performance and look at expiring vouchers. This allows you to plan your next coupon/voucher fast and easily, as well as see how it fits into your overall strategy.

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