Amazon Vendor Promotions or Coupons are one of several promotion types available to vendors who sell their products on Amazon. Coupons are not only a powerful promotion tool, but they also allow vendors to gain awareness and increase sales directly to their products during Q4, when shoppers are likely to make a purchase.
Customers want to save, and promotions (located on the Advertising tab in Vendor Central) provide an incentive to make a buying purchase sooner rather than later.
Katie Lavieri, Vendor Services Manager at CPC Strategy highlights the benefits to using Amazon Vendor Promotions / Coupons during the holiday shopping season.
5 Benefits of Amazon Vendor Promotions / Coupons:
When vendors opt into coupons or promotions they are provided access to 7 different areas of placement across Amazon including:
- Product Detail Pages
- Amazon Coupon Page
- Search Results
- Amazon Gold Box Page
- Email Campaigns
- The Shopping Cart
- The Coupon Landing Page
2) Promote Items
Vendor Promotions / Coupons are a great way to promote new products to gain reviews or to promote items with high levels of inventory.
3) Drive Off-site Traffic with Coupon Landing Page (CLP)
Vendors can use Amazon Promotions / Coupons to drive off-site traffic through other merchandising channels, like Facebook to Amazon.
The Coupon Landing Page (CLP) is a URL that can be used to link to an Offer from off site.
- The URL provides a way to send consumers from an external site (i.e. Facebook, email, display ad, etc.) to one page that lists all of the various products available on an offer.
- Also, when a customer arrives at the URL the offer is auto-clipped if a consumer is logged into their Amazon.com account. If a consumer is not logged in, after logging in they will be taken back to the CLP where the offer will be auto-clipped.
4) Reporting Metrics
Vendors should take advantage of Amazon Vendor Promotions / Coupon’s offer-redemption metrics to track their coupon’s performance. These metrics are valuable to sellers who want to track a lift in sales, traffic, volume, etc.
Sellers can find these metrics located within Vendor Central by opening the Merchandising menu and selecting the Coupons tab. The “View Metrics” link is located to the right of the promotion of interest (as seen below):
Each coupon in the promotion is displayed with the following information:
Coupon Name – Name from the uploaded spreadsheet.
Start Date – The coupon start date.
End Date – The coupon end date.
Coupons Clipped – Number of times customers have clipped your coupon.
Coupons Redeemed – Number of times customers have redeemed your coupon.
Redemption Rate – (Coupons Redeemed / Coupons Clipped). This metric is only displayed for Amazon coupons, and refreshes nightly.
Redemption Rate Benchmark – The average redemption rate for coupons in the same product category as your coupon. This metric is only displayed for Amazon coupons and refreshes nightly.
Sales Lift – The incremental unit sales associated with your coupon. This metric is only displayed for Amazon coupons and refreshes nightly.
Budget Spent – Approximate budget spent to date. The budget spent amount reflects clips and redemptions for the retailer selected from the dropdown in the top right of the Metrics page.
Budget Remaining – Approximate budget remaining. Both Amazon and Fresh clips and redemptions are factored into this calculation, regardless of which retailer is selected in the dropdown
Percent Budget Used – Approximate percent of your coupon’s budget that has been used. Both Amazon and Fresh clips and redemptions are factored into this calculation, regardless of which retailer is selected in the dropdown.
5) Advanced Filters
Vendors can utilize advanced filtering to only broadcast offers to customer who have purchased/viewed ASINs.
Vendors can also target their offers to only members of Amazon Prime, or the Amazon Mom and Amazon Student Programs.
Are there any disadvantages to Amazon Promotions / Coupons?
Although there are many advantages to utilizing Amazon Vendor Promotions / Coupons, it is important for sellers to note the cost of fees for coupons goes up during the months of October, November & December.
Costs to set up and launch a coupon:
The standard cost and fees for Amazon Digital Offers include the offer face value, clip fees and redemption fees.
When vendors create an offer, Amazon generates an agreement and will automatically deduct face value and fees from the invoice.
- $0.17 per unique clip
- $0.08 per redemption
*Amazon Mom Coupon Fees:
- $0.25 per unique clip
- $0.08 per redemption
*Q4 Fees (coupons uploaded from October to December):
- $0.21 per unique clip
- $0.08 per redemption
How can Vendors set up a coupon?
Offer creation through Vendor Central provides vendors with the ability to upload many offers at once through an Excel spreadsheet. When preparing to upload offers through Vendor Central, be aware that there is a 28 day lead time. For more on how to set up Amazon Vendor Coupons, email [email protected]