Shoppers love a bargain, and Amazon shoppers are no different. That's why Amazon Promotions are so popular. Running a promotion on Amazon has proven to be a sure-fire way to attract new customers, boost conversions and increase sales.
That said, are they right for you? And should you consider running promotions over the Holidays? Over the next two blog posts, we will cover the different types of Amazon Promotions for sellers and our top tips and strategies for picking the best promotions to run for your products in conjunction with your PPC.
This week we are going to start by providing a brief overview of Amazon promotions, how to use Amazon promotions including how to set them up, and the pros and cons of each type.
Amazon Lightning Deals are a popular feature on Amazon. These time-sensitive promotional offers can be found throughout Amazon, and are available on the Deal of The Day page.
Lightning Deals are enticing to Amazon customers because the products featured are constantly changing; the Deals only last for four to six hours.
Products must be considered eligible by Amazon for a Lightning Deal. The criteria for eligibility criteria has been subject to change but the main ones are:
The typical fee for an Amazon Lightning Deal is $150. The cost is higher during special sales events like Prime Day, Black Friday, Cyber Monday and during December on account of the Holidays because of the increase in traffic on Amazon’s site.
Lightning Deals can be a great way to boost conversions and sales by enticing shoppers to purchase your product for a limited time discount.
They can also be extremely effective for liquidating inventory or reducing inventory quickly as a way to avoid excess storage fees if you are overstocked.
However, because there is a fee associated with Lightning Deals, you'll need to consider if the cost of running a Deal is profitable for you.
Creating an Amazon promotion is another way to get your products in front of more shoppers is through Amazon promotions. With an Amazon promotion, you can offer your products at a discount to increase sales.
There are three main types of promotions:
Promotions can be a great way to increase brand awareness and drive additional traffic to your products to boost sales.
That said, it can be easy to make mistakes when setting up promotions which can result in losing a lot of inventory by giving away the products for free.
It's also very important that you calculate how much you can afford to invest in these promotions. Whichever type of promotion offer, your margins will be impacted. You can decide how much of an impact but you still want to be able to make a profit. albeit, a smaller one.
Amazon coupons are visible in the search results, on product detail pages, and other places including Sponsored Product ads. Just like coupons from printed circulars, shoppers “clip” these coupons to apply them to their order.
There are two types of coupons:
Coupons have been around for years and shoppers love them; few people turn their nose up at a bargain.
When shoppers see your product alongside your competitors in the search results, coupons can give you the edge to win their click.
It’s a great way to bring in new customers, build brand awareness, and increase conversions for your business.
But as with the other types of promotions, coupons come at a cost to your business so you will need to take this cost into account to ensure it is viable.
Running a deal or coupon on Amazon has several benefits. They can help to improve the discoverability of your brand and products, boost conversion, increase sales and highlight your products in the shopping results. And at this time of year, they can drive increased traffic to events such as Black Friday and Cyber Monday.
The type of promotion you choose depends on your marketing goals and more importantly, your budget and profit margins. You need to know your numbers to ensure you still come out on top.
Next week, we'll dive deeper into these key considerations and how to ensure you get the most out of your Amazon Promotions over the Holidays.
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