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 social media promo code, what it entails, the eligibility requirements, and the pros and cons of running this promotion.

What is a social media promo code on Amazon?

A Social Media Promo Code promotion is a type of promotion that allows Amazon Sellers to offer exclusive discounts to their social media followers. With this type of promotion, sellers can create custom promo codes that can be shared with their followers on social media platforms such as Facebook, Twitter (X), and Instagram. Social Media Promo Code promotions are a way to reward followers for their loyalty and encourage them to make a purchase on Amazon. By creating a unique promo code, sellers can track the effectiveness of their promotion and measure the impact of their social media efforts on their sales. To create a Social Media Promo Code promotion, sellers can use Amazon’s Advertising Console. They can create a unique promo code, set a discount percentage or amount, and specify the products that the promotion applies. The promotion can then be shared with followers on social media, either through a post or a paid advertisement.

What are the eligibility requirements for running social media promo codes on Amazon?

• Professional Seller
• Brand Registered Account
• Active Social Media Account

What are the pros of running social media promo codes on Amazon?

• Increased sales: Offering exclusive discounts to your social media followers can help increase sales of your products on Amazon.
• Increased social media engagement: Social Media Promo Code promotions can help increase engagement with your social media followers and attract new followers to your social media pages.
• Customization: Amazon Sellers have control over the discount amount and the products that the promotion applies to, which allows for greater customization and targeted marketing.
• Cost-effective: Social Media Promo Code promotions can be a cost-effective way to drive sales and promote your products on Amazon.

What are the cons of running social media promo codes on Amazon?

• Reduced profitability: Offering discounts can reduce your profitability and impact your bottom line, particularly if the discount percentage or amount is high.
• Limited duration: Social Media Promo Code promotions are typically short-term promotions, which means that the discount will only be available for a limited time. This can create a sense of urgency for shoppers, but it can also make it difficult to plan and manage inventory.
• Limited reach: Social Media Promo Code promotions are only available to social media followers, which means that the promotion may not reach a large audience.
• Brand perception: Offering discounts can sometimes create the perception that your products are low quality or not worth the full price. This can impact your brand perception and potentially harm your sales in the long run.

Best Practices for Amazon Seller Promotions

If you want to maximize the effectiveness of your Amazon seller promotions while minimizing potential risks, it’s essential to implement the following strategies:

1. Utilize Single-Use Discount Codes

For promotions with significant discounts, opt for single-use discount codes. This prevents large quantities from being purchased at a discount, which can be detrimental if shared widely on social media or deal sites. Multi-use codes are susceptible to abuse, allowing savvy competitors or deal hunters to deplete your inventory rapidly and potentially resell those items against you.

2. Set Maximum Order Quantities

Even with single-use codes, buyers can still purchase multiple items in one transaction. To safeguard your inventory, set a maximum order quantity in your Seller Central account. This ensures that no single customer can wipe out your stock and exploits any potential gaps in your sales strategy.

3. Build an Email List Through Promotions

Transform discount offerings into opportunities to grow your mailing list. Instead of sending prospects directly to Amazon with a discount code, direct them to a landing page first. Here, they can receive their discount after providing their email address. This approach not only boosts your list-building efforts but also sets the stage for future marketing campaigns, such as new product launches and exclusive offers.

4. Avoid Incentivizing Reviews

Stay compliant with Amazon’s guidelines by steering clear of incentivizing reviews through discounts or rewards. Amazon frowns upon this practice and may take swift action against sellers who engage in it, including account suspension. Offering discounts in exchange for reviews can lead to serious repercussions.

5. Be Cautious with High Discounts and Reviews

While offering large discounts, avoid soliciting reviews from those customers. High discounts can make reviews appear unnatural to Amazon’s algorithms, leading to removal or review restrictions for your listing. Consider limiting follow-up emails promoting reviews if discounts are steep.

6. Determine an Optimal Discount Percentage

Our recent analysis of Prime Day performance data reveals that the most effective discount strategy combines moderate price reductions (greater than 10%) with a measured increase in advertising visibility (around 10% increase in paid appearances). While discounting alone outperforms increased advertising spend in isolation, the real winners are brands that balance both levers. However, brands should avoid over-investing in search advertising, as increases beyond 25% in paid visibility showed diminishing returns. The key is to first understand your product’s price elasticity of demand through historical data analysis, then implement targeted discounts that optimize both profit margins and sales velocity during high-traffic shopping events.

Conclusion

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