Guide to Amazon Promotions and Deals

Leveraging Amazon promotions, alongside well-optimized Amazon listings and focused advertising, can be a powerful strategy for sellers to enhance their products' visibility and boost customer conversion rates on their listing pages.

Promotional offers on Amazon can significantly sway the purchasing decisions of many shoppers, creating the perception of a good deal and giving sellers a competitive advantage over others in the marketplace.

The main benefits of using Amazon Deals and Promotions:

• Increase conversion rate, boosting sales
• Increase visibility in search and display ad placements, with a green or red promotional badge
• Encourage Amazon’s algorithm to show your product to more customers in organic and paid search
• Convince customers to buy your product over a competitor’s similar product
• Improve store operations
• Increase Average Order Value

When should run Amazon promotions?

• During Peak Sales Seasons – Leverage promotional tools during peak season traffic to further engage and influence customers’ purchasing decisions, driving sales conversion
• When Clearing Inventory – Useful for moving overstocked or slow moving products.
  
• During Product Launch – By offering attractive promotions to attract initial customers and to grow brand awareness.
  
• During Sales Plateau or Decline – Create appealing promotions to boost sales of stagnating or declining products

Types of Promotions

Prime Exclusive Discounts (PEDs)

Prime Exclusive Discounts (PED) are discounts available only to Amazon Prime customers. PEDs are shown to customers in search results, paid ad placements, and on the product’s listing page. Product offers with a Prime Exclusive Discount will show a discounted price with the regular price crossed out. Buyers will also see a savings summary in search results and on product detail pages. Prices adjusted for discounts are displayed on the Featured Offer detail page. These discounts can be offered on both Prime (FBA and Seller Fulfilled Prime) and non-Prime (seller-fulfilled) offers.

Rules & Requirements

• Product must be in new condition.
• Product must have a rating of at least 3 stars, or no rating. This requirement changes to 4 stars for discounts that are specific to special events such as Prime Day and Black Friday.
• Discount must be at least 10% off the non-member, non-promotional price (that is, your price or sale price, whichever is lower). This requirement changes to 20% off for discounts that are specific to special events such as Prime Day and Black Friday
• The item is not a restricted product, nor is it offensive, embarrassing, or inappropriate.
• The Prime Exclusive Discounted price must beat the lowest price for the ASIN in the past 30 days. The lowest price in the last 30 days is the lowest customer bought price for the ASIN in that period including all deals, promotional, and sale prices across all sellers.
• The product must comply with Amazon’s customer product reviews policies.
• The product must comply with Amazon’s pricing policies.
• The Prime Exclusive Discount price must be 5% lower than reference price (that is, List Price or Was Price).
• Additional eligibility criteria for FBA offers: Product must be eligible for Prime shipping in all regions within the US.
• Additional eligibility criteria for seller-fulfilled offers:
  

• Your account must have a late dispatch rate, and it must not be greater than 4% for the previous month before the deal starts
• Your account must have an order defect rate and it must not be greater than 1% for the previous month before the deal starts
• Your account must have a pre-fulfillment cancellation rate and it must not be greater than 0.5% for the previous month before the deal starts.
• Your disbursement reserve policy must be set to 7 days or more after delivery.
• Product must be shipped for free
  

Coupons

Coupons are discounts offered on a single product or a set of products. Customers can discover coupons through the following options:

• Coupons home page
• Search results
• Product detail pages
• All-Offers Display
• In their carts
  

There are three types of Coupon types:

• Standard – discount available to any product that meets coupon requirements
• Subscribe & Save - discount only available to products enrolled in Subscribe and Save program (first delivery only)
• Reorder Coupon – discount available to customers who previously purchased your products but have not reordered within the expected time
  

Coupons can be $-off or %-off the current price and can be offered to all customers or a subset of Amazon customers:

Targeting Options:

• All Customers
• Specific Programs (Amazon Prime Members, Amazon Family Members)
• Brand Audiences (A subset of 12 audience groups only available to Brand Owners)
  

You can limit each coupon to 1 redemption per customer or allow for unlimited redemptions per customer.

Rules & Requirements

• Professional Seller Account
• 3.5 Star Seller Feedback Rating
• Products must have either: No reviews, 1-4 reviews with an average rating of at least 2.5 stars, 5+ reviews with an average rating of at least 3 stars
• Products can be FBA or Seller-Fulfilled
• Products must be sold in new condition
• Minimum discount of 10% and maximum discount is 50%
• Minimum budget of $100
• Coupon redemption fee of $0.60 per redemption
  

Deals

Deals are promotions with high visibility on Amazon that can help sellers quickly increase and accumulate sales. Products participating in Deal campaigns are displayed on the dedicated Today's Deal page on Amazon, driving high traffic to the product.

There are two types of deals: Lightning Deal and Best Deal

Lightning Deal is a time-bound promotional offer where an item receives special merchandising such as a Deals Badge for a limited number of hours, usually 4 to 12 hours (as determined by Amazon).

Best Deal is a time-bound, promotional offer where an item receives special merchandising such as a Deals Badge for a limited number of days.

​Rules & Requirements

• Professional Seller Account with a feedback rating of 4 Stars or more
• Product must have a sales history in Amazon stores and at least a 4-star rating
• Product must be Prime-eligible (FBA or Seller-Fulfilled Prime)
• Product must be in new condition
• Product must not have a high return rate
• Amazon charges a Deal Fee for each individual deal regardless of how many units are sold during the deals. Deal fees are increased during Prime/Special Events
  

Promotions

Amazon promotions are various discount offers that sellers can use to entice customers and drive sales. Consider creating a promotion when sales are slow so that you can motivate both existing and new customers to buy. You can also distinguish your offer from the competition and encourage existing customers to try new products.

There are three types of Promotions:

• Percentage Off - A promotion with a tiered discount structure to encourage the customer to buy more because they get a better discount (no Buy Box impact). To discount single unit purchases, consider implementing a limited-time Sale Price (impacts Buy Box).
• Buy One Get One - Set up a limited-time, "buy one (or many), get one free" offer to spotlight a new product or to get your current customers to buy differently.
• Social Media Promo Code - Create a custom promo code and receive a unique marketing page to share with customers through social media, emails, or influencer marketing. You control how to market the promotion and how many units and transactions customers can redeem.
  

​Rules & Requirements

• All products are eligible except for:

• Books, Music, Video, and DVD (BMVD)
• Wine: Excluded from all promotion
  

Promotions can be created to include certain terms and conditions that the customer must meet in order to use the promotion, such as:

• Eligibility - Specify the products that are eligible for a promotion
• Exclusions - List all products that are not eligible for a promotion
• Returns and cancellations - Define your policies regarding refunds in case of returns or canceled orders
• Eligibility window - State the exact time that an offer begins and ends
• Shipping eligibility - Specify where you will or will not ship to
• At least this quantity of items - Promotion applies when a customer purchases a specific number of eligible items in a single order. You must enter a whole number
• At least amount (in currency) - Promotion applies when a customer spends a certain amount of money or more on eligible items in a single order
• For every quantity of items purchased - Promotion applies to a specific quantity of items when a customer purchases a specific number of eligible items in a single order

Brand Tailored Promotions

These promotions are exclusive to only Brand owners that will help you build your customer base and brand loyalty by offering promotional codes to various audiences.

Through Brand Tailored Promotions, you can offer promotional discounts ranging from 10% to 50% off on all or specific products to specific customer types to boost customer conversions, repeat purchases, and customer retention rates. Each eligible customer can redeem the promotion on a single purchase, limited to one unit redemption per customer. These promotions will show on the product’s listing page.

Audience Types

• At Risk - Customers who haven’t purchased recently nor frequently, with varied spend. At-risk customers can be engaged through discounts, promotions, and other incentives
• Brand Cart Abandoners (last 90 days) - Customers who have added any of your brand products to their cart in the last 90 days but haven't purchased yet
• Brand Followers - Brand followers have clicked to follow this brand on Amazon
• Declining Promising - Customers from your brand’s Promising audience who are predicted to spend less with your brand in the next year
• Declining Top Tier - Customers from your brand’s Top-Tier audience who are predicted to spend less with your brand in the next year
• High Spend Customers - A 5% sampling of this brand's highest-spending customers in the last 12 months
• Potential New Customers - Customers who have clicked on your brand, Storefront, and products or added products to their cart in the last 90 days but have not purchased from your brand in the last year
• Promising - Customers who purchased recently, buy occasionally, and spend above average. In order to convert to a Loyal customer, encourage purchase through marketing engagement
• Recent Customers - A 5% sampling of this brand's customers in the last 12 months
• Repeat Customers - Customers who have purchased more than one order from this Brand in the last 12 months
• Top-Tier - These are customers who purchased recently and spend the most. Most of these customers buy frequently
  

Rules & Requirements

• Professional Seller Account
• Must have a registered Brand
• Must have at least 100 audience members in the specific audience segment

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Creating multiple promotions on the same product(s) may result in customers combining promotions for significant discounts. Promotions that are "preferential" cannot be combined with other preferential promotions and only the higher discount applies.