Do you struggle to understand the difference between the types of deals Amazon offers? Which one is the best for your brand, or certain products? In this article, we will walk through the coupon offering, what it entails, the eligibility requirements, and the pros and cons of running this promotion.

What is a coupon on Amazon?

Coupons allow you to offer a discount on your products, either in the form of a percentage off or a fixed dollar amount, to incentivize customers to purchase your products. To create a coupon on Amazon, you’ll need to log in to your Seller Central account and navigate to the Advertising tab. From there, you can select the coupons option and follow the prompts to create a new coupon. You can specify the discount amount, duration of the promotion, and any other terms and conditions for the coupon. Once you’ve created a coupon, it will be featured on your product detail pages and in search results, allowing customers to see the promotion and apply the discount at checkout. Coupons can be a great way to increase sales and attract new customers on Amazon, but it’s important to carefully consider the costs and benefits before creating a coupon and setting the discount amount.

What are the eligibility requirements to run a coupon on Amazon?

• Professional Seller
• Availability – checked under the coupons section in Seller Central
• Must have an active offer

What are the pros of running a coupon on Amazon?

• Increased sales: Offering a coupon on Amazon can incentivize customers to purchase your products and potentially increase your sales.
• Customer acquisition: Coupons can be a great way to attract new customers who may not have discovered your products otherwise. By offering a discount, you can encourage customers to try your products and potentially convert them into loyal customers in the future.
• Competitive advantage: By offering a coupon, you can gain a competitive advantage over other sellers offering similar products on Amazon. This can help you attract more customers and generate more sales.
• Customizable: Coupons on Amazon can be customized in terms of the discount amount, duration of the promotion, and any other terms and conditions. This allows you to tailor the promotion to your specific needs and goals.

What are the cons of running coupons on Amazon?

• Reduced profit margins: Offering a discount through a coupon means that you’ll be selling your products at a lower price than usual. This can reduce your profit margins, especially if you’re already operating on thin margins.
• Cost of advertising: While Amazon promotes coupons to its vast customer base, you may still need to invest in additional advertising to get the most out of the promotion. This can add to your overall costs and reduce your profitability.
• Possible increase in returns: Offering a discount can attract customers who may be more price-sensitive and less likely to keep your products. This can lead to an increase in returns and potentially reduce your overall profitability.
• Limited use: Coupons are only available to customers who see them and take advantage of them. If your coupon isn’t seen by a significant number of customers, it may not have a significant impact on your sales.

Are you interested in other types of promotions and discounts available to sellers on Amazon? Make sure to check out our blog to get a complete understanding of which deal is best for you. If you have further questions, reach out to us at hello@momentumcommerce.com