Amazon Seller Strategies Episode #2: Amazon Coupons

Melissa PrestiSeller StrategiesLeave a Comment

amazon coupons

Seller Strategies Episode #2: Amazon Coupons – $ vs % off – which one is better?

What are Amazon coupons and how do they work?

It’s important to understand that Amazon coupons are different than Amazon promotions. In the newest episode of our Seller Strategies video series, Maria and Ervin are digging into the pros and cons of using Amazon coupons.

What our Amazon sellers have learned is that it’s all about making things easy for the customer. You might not realize that choosing between a $ or % discount could have a large impact on your sales. As consumers, we’re used to seeing huge sales – “50% off!” is enough to drag me into any store. But when you think about it, a percentage discount requires a bit of mental math. And customers don’t have time for that when they are making an impulse purchase decision!

Which is why you might actually see a better reaction to offering a dollar amount discount on your Amazon coupon. For example, I can easily understand that a $3 off coupon on a $20 product makes it $17 and make a quick decision. That’s a 15% discount but I didn’t have to do any math!

Which method performs better?

There’s certainly value in testing both options. Maria knows that customers are used to seeing discount offers at large retailers, and believes it’s a proven successful strategy. But Ervin argues that customers are on Amazon to shop, not think. Thus the dollar discount will win the test every time.

Before you jump into testing out each Amazon coupon method, there are a few facts to face:

  • You can manage your coupon discounts in the Advertising tab of  your Seller Central account.
  • You must set a maximum budget and date range for the coupon.
  • The coupon feature works by allowing users to click the check mark on the listing.
  • Every time someone clicks on that coupon, the seller gets charged a $0.60 redemption fee for the feature being used + the dollar amount of the coupon.
  • Once you’ve used 80% of your budget, your coupon will be taken offline by Amazon.

So there are some added costs to consider before enticing your customer with a sweet deal. Check out the video to learn more about trying out this tip. You’ll find a new seller strategy to position your coupon offer that will get you the best results.

We will be posting a new episode each week with a new strategy for you to try out, so make sure you tune in next week!

Author: Melissa Presti

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