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Amazon Promotions: The Basics and Best Practices

March 07, 2022
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Running an Amazon promotion can be a great way to influence conversion rates; starting the Amazon flywheel. But with a wide variety of promotions available to run and costs associated with each, it can be difficult for brands to determine which can offer a meaningful impact. 

Strategically approaching Amazon promotions can benefit your brand and make a difference with conversion rates, glance views, and most importantly, sales. Code3 Amazon Strategists recommend including promotions throughout the year as part of your marketplace strategy. We’re here to share everything you need to know about Amazon Promotions. 

Amazon Promotion Best Practices

Incorporating Amazon promotions into your marketplace strategy is an effective way to stand out from the competition. Promotions can increase sales and is a great way to start the Amazon flywheel.

The first step to determining which promotions can be meaningful for your brand is to understand the end goal. Amazon promotions each have their own pros and cons, so it’s important to tailor the approach to align with overall goals. For example, if a goal is to improve click-thru rates or improve sales with a steady, small amount of conversions, coupons are a great choice. On the other hand, if the goal is to increase organic rankings, then spiking sales velocity heavily through a lightning deal is a brand’s best move.

In general, high traffic times such as Prime Day, Black Friday, and the following days are always a good time to run promotions. Code3 Amazon Strategists recommend layering different types of promotions for optimal results. 

Next, we’re sharing more information on the different types of Amazon promotions. 

Amazon Coupons

Coupons are a highly visible promotion and a good choice for products with low conversion rates. They are merchandised on the coupon page, product detail pages, in search results, in the shopping cart, on the deals page, and populated on ads. Because of the high visibility, Code3 Amazon Strategists utilize coupons to drive conversions and/or clicks on ads. Coupons can run for 1-90 days and must be submitted at least 24 hours in advance. 

Pro Tip: During peak periods, coupon submission times may vary.  

Costs vary depending on Vendor and Seller Central. For Vendors, coupons cost $0.17 per clip and $0.08 per redemption in addition to the deal. During Q4, clip costs go up to $0.21 per clip. Seller Central costs are the cost of the offer, plus a $0.60 per redemption cost. 

Amazon Social Media Promo Code

If a brand has partnered with a social media influencer or has a big social media following, utilizing an Amazon promo code is a great option. A promo code is a percentage off the listed price and can be merchandised on product detail pages, product images, or on an Amazon landing page. 

The cost of this type of promotion is the % off communicated for the deal, ranging from a minimum of 5% to a maximum of 80%. 

Strategic Tip: If you have a big social media following, use a promo code to advertise a new product launch on Amazon. 

Amazon Lightning Deals

One of the most common Amazon promotions is the Lightning Deal, which is a promotion offered in limited quantities, for a short period of time. This type of promotion is best used on high-traffic holidays such as Prime Day or Cyber Monday. It’s shown on the Amazon Deals Page, Product Detail Page within the Buy Box, and includes a limited time to check out. 

Pro Tip: Lightning Deals can have a big influence on sales velocity, helping to start Amazon’s flywheel. 

In addition to the % off deal, brands must also pay a $150-$500 merchandising fee, depending on the timeframe of their deal. Lightning deals can last between 6-12 hours. Depending on the peak period, deals must be submitted anywhere from 2 weeks to 2 months out. 

Amazon Deal of the Day

Another Amazon promotion ideal for high-traffic weeks is the widely visible Deal of the Day. It’s one of the most visible promotions offered, with placement on the Amazon deals page, home page, the PDP, and much more. To offer, brands must go through a vendor manager. This type of promotion requires a deep discount.

Amazon Best Deal 

Good for an extended high traffic period, such as holiday shopping, the Amazon Best Deal is shown on the search results page as a “limited time deal.” It’s also merchandised as a strikeout price on the PDP. Code3 Amazon Strategists use the Best Deal to stand out in search results as well as to help drive clicks and conversions over a long period of time. 

The Amazon Best Deal can last up to 2 weeks and must be submitted at least 2 weeks to 2 months out, depending on the peak period. At least a 15% discount is required, and the cost includes the discount plus a $300-$500 merchandising fee, depending on the timeframe. Vendors are not able to cap the budget on Best Deals. 

A similar promotion, the 7 Day Deal, is also offered. Merchandising and cost are the same, but the 7 Day Deal, as the name suggests, only lasts for one week. 

Percent Off Promotion 

Ideal for complicated discounts, such as a discount if another product is purchased, a percent off promotion offers lower visibility. It’s featured below the fold on the PDP but can run for an unlimited amount of time. It must be submitted 24 hours in advance, and the cost is the percentage off of the product. 

Because the Percent Off Amazon promotion is not highly visible and can be complicated, it can require some shopper education via a product image or other methods. 

Sales Price 

Sales Price Amazon Promotion can be a great choice to entice and drive conversions from value shoppers. Done in the backend, there is no advanced submission required, and it can last an unlimited amount of time.  

Strategic Tip: A Sales Price Promotion can cause problems with other promotions, so plan carefully around other promotions and high traffic times. 

Sales price promotions are shown as a strikeout on the PDP and search page results, and the cost is the amount of discount given. 

Buy One, Get One

A Buy One, Get One Amazon promotion is another that is not highly visible and can be found below the fold of the PDP. It can last an unlimited amount of time but must be submitted 24 hours in advance. Cost is the amount of the discount given. 

Pro Tip: A 50% off coupon will have the same effect, but better visibility.

Amazon coupons, discount codes, and all other types of Amazon promotions are an important part of any marketplace strategy. Implementing promotions can help brands stand out and increase sales, especially during peak seasonality and increased traffic times. 

If you could use a strategic partner to help determine how Amazon promotions can work for your brand, contact us today

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