Originally published on June 25, 2019, updated January 20, 2020
Whether you’re launching a new product or trying to boost sales for a former best seller, promoting your products on Amazon can really impact your bottom line. More sales help boost your organic search ranking, which is even more important as Amazon’s sponsored ads appear above organic search results. Having your product on the first page of Amazon search results drastically increases your odds of converting sales.
Many sellers use Amazon’s advertising services to promote products on Amazon. Prime Exclusive Discounts, Amazon Giveaways and other promotions are a bit different than Amazon's more traditional advertising options because you are offering a deal or free product to Amazon customers. This in turn increases interest in your listing and hopefully leads to a major sales boost for your products!
Prime Exclusive Discounts is an advertising option that is only available to FBA sellers. Your discount can be set as percentage-off or amount-off, and you can set a minimum discounted price floor for each product. The product offer will show a discounted price with the regular price crossed out. It also displays a savings summary on the product detail page as well as in search results, notifying prospective buyers about the discount they can receive as a Prime member.
Products that are discounted through Prime Exclusive Discounts will also display a special Prime Day Deals badge on Prime Day. Any item you submit for Prime Exclusive Discounts must have a minimum three star average product review rating or zero product reviews. (Need help getting more reviews? FeedbackFive can help.) You can find all of the eligibility requirements for offering Prime Exclusive Discounts here.
Amazon retired the Giveaway program in fall 2019.
The Amazon Giveaway program allows FBA sellers to set up sweepstakes-style promotions using their products as prizes. You choose the type of giveaway you want to run, set the odds and select the number of prizes to offer. Amazon takes care of the details, from targeted marketing to selecting the winners and sending the prizes.
Anyone with an Amazon account can set up a giveaway. The giveaway host purchases the prizes at the listed price, paying any applicable shipping and tax costs. In order to make products available for an Amazon Giveaway, a merchant must have a Professional selling account on Amazon.
Amazon Giveaways can be created to award prizes to customers who have fulfilled the Giveaway entry requirements or to help boost product awareness. If you recently launched a new product, this could be a good way to increase visibility for the item, but it’s important to know the program rules. You cannot ask customers to share personal information or use giveaways to manipulate Amazon sales rank, and all giveaways are subject to Amazon’s Conditions of Use.
Shoppers love a good deal, and offering an Amazon Coupon can be a great way to differentiate your listing from the competition. If you want to offer coupons for your products, you must be a Professional seller with a minimum Amazon seller feedback rating of 3.5. Your average product review rating is also a consideration. If you have zero reviews, the product is eligible without an average rating. If the product already has reviews, it must meet the following criteria:
Products can be Fulfilled By Merchant, Fulfilled by Amazon or Seller-Fulfilled Prime.
It’s important to understand that you cannot provide Amazon Coupons as an incentive for Amazon customer reviews. Product reviews that are received from purchases with coupons may not always receive an Amazon Verified Purchase badge. You can learn more about eligibility requirements and offering Amazon Coupons here.
Want to create a more targeted promotion? Social media promo codes allow you to offer a percentage discount on eligible products. You can share the codes with customers through social media as well as influencer marketing content. After creating your social media promo code, you’ll be provided with a URL for each promotion that is a unique marketing page displaying the promotion details for eligible products. Shoppers can simply add products to their cart directly from the unique URL and your discount will apply automatically at checkout.
Social media promo codes can run for up to thirty days. The discount must be at least 5% and may not exceed 80% off of the product’s current price. The social media promo codes feature is currently only available in the US marketplace for Amazon sellers who are approved in Amazon Brand Registry or Professional sellers with a positive feedback rating of at least 80% positive seller feedback and a minimum of twenty seller feedback ratings.
I talked to Shannon Roddy, founder of Marketplace Seller Courses about this topic and he said, "There's no issue with offering customers a coupon code or discount and then sending a follow up email asking for a review through a tool like FeedbackFive. The idea is that the discount can't be offered to the customer as a condition for leaving a product review. It's important to think of Amazon's goal, which is to make sure that the platform is free of misuse and abuse. If your intent is to get around that somehow, you're in hot water. Don't manipulate sales velocity and reviews. But if your intent is to gain more customers while following the rules, there is no issue with offering discounts on your products."
When it comes to discounts and product reviews, you may find that reviews from buyers who received a discounted rate appear as unverified purchase reviews. That's not an issue if you have a lot of verified purchase reviews; but since verified reviews have greater weight in your product's average star rating, it is something to be aware of. In testing, Shannon has found that offering discounts of more than 20% resulted in the removal of the Amazon Verified Purchase badge.
I also chatted with Chris McCabe, who helps sellers with Amazon account suspensions at ecommerceChris. "The amount of the discount is a big difference maker here," he said. "Huge discounts aren't allowed. Modest discounts, sellers still do these and send review links. If many buyers leave positive reviews after getting big discounts, even if you don't ask, that typically leads to an investigation, which could mean a suspension."
Bottom line: exercise caution when offering product discounts. If you are a newer seller who is still getting established on the Amazon marketplace, it is likely not in the best interest of your business to offer steep discounts.
Do you offer coupons, giveaways or social media promo codes on your products? How do you think these methods compare to other forms of Amazon advertising and the Early Reviewer Program?
Originally published on June 25, 2019, updated January 20, 2020
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.