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Amazon Coupon Codes – How to Use Them To Grow Your Business

By July 2, 2020 No Comments

Amazon coupon codes can be highly effective for boosting sales. Take Amazon seller Samer Brax, who added coupons to his selling strategy and increased his sales by $1,070 in one day. Or AMZ advisers, a marketing firm for Amazon sellers, whose coupon and promotion-centric strategy helped one cosmetic seller reach $1.2 million in sales in one month.

According to DealDrop, 81% of shoppers regularly use coupons and they are popular across all productsfrom clothes to household items and groceries. Amazon makes it easy for sellers to reach these consumers with Amazon Coupons. 

To be eligible for this program, all you need to have is a Professional Sellers Account and be in good standingmeaning you have 20 seller account ratings with a 3.5 seller feedback rating. So this tactic is a good tool for those sellers who already have some leverage on the platform.

What you’ll learn in this article:

Why use Amazon coupons?

How effective are coupons compared to Amazon’s other promotion tools? There are many reasons to try them. Some are:

 

  1. People love coupons
    29% of shoppers will add a product if it’s discounted even if they weren’t intending to buy it. eCommerce shoppers with coupon codes will spend up to 24% more. 
  2. More impressions
    Your coupon will stand out on the product page and Amazon Marketplace search.  This means that users may be tempted to take a closer look at your product and gain you more impressions.

  3. Refined audience targeting
    Amazon coupons offer the opportunity to target everyoneor refine your selection to subsets of Prime members or customers who have viewed or purchased certain products. For example, you may want to target students, especially since 96% of students are more likely to make a repeat purchase from a brand that offers coupons or discounts. 

Setting up your coupons

Creating a coupon on Amazon isn’t time-consuming, but you may want to check your math to ensure each deal is profitable. To set up your coupons on Amazon:

  1. Go to Seller Central and hover on the “Advertising” tab. Click on “coupons.”

  2. Click “Create a Coupon” and select your product through its SKU/ASIN or a keyword search. You can have multiple products under one coupon.

  3. Select a dollar or percent discount.

  4. Decide whether you want to allow customers to reuse the same coupon. Keep in mind, if you opt to let them redeem the same code multiple times, they may buy out your inventory and you’ll minimize your customer reach.

  5. Set your coupon’s maximum budget. Once this budget reaches 0, your coupon will be deactivated. When you run a coupon, the budget will apply to the coupon’s value. You’ll also be charged a $0.60 redemption fee when a customer uses a coupon. For example, if your coupon is worth $10 off, a customer redemption subtract $10 + $0.60 from your remaining budget.

  6. Schedule dates for your coupon between 1 to 3 months and decide which audience to target.

  7. Claim your coupon code from a randomly generated set or create a custom code.

Coupon codes vs promotions

You may notice that under the “Advertising” tab on your seller’s dashboard, you have the option to create both promotions and coupons. Both of these options are similar and the creation process is nearly identical. 

The main difference is how these codes are delivered. Coupon codes are shown in the product listing, while the promotion code is shown only if your product is in the buy box or during checkout.

Promotion codes are great for creating exclusive discounts for your dedicated shoppers, compared to coupon codes which can be seen by everyone. 

Do keep in mind that a customer can use both a coupon code and a promotion code togetherso you may want to limit overlap of these two discounts. 

You can see how to create a promotion code in this tutorial from Amazon FBA seller Jorge Santiago:

What works best: dollar-off or percentage-off coupons?

When it comes to creating our amazon coupon, you have two options:

  • Offer a percentage off
  • Offer a dollar-based discount

And you may be asking: Which one is better?

A percentage off coupon may be easier to manage across multiple products. A study by Blippr found that 74% of shoppers prefer discounts that indicate a “percentage off” savings.  However, a dollar-based discount will be easier for customers to conceptualize.

Which offer will work better for you may well depend on your products and audienceso don’t be afraid to try both.

Integrating coupons into your marketing

Coupons are great on Amazon, but they can go farther if you integrate them into your overall marketing channels. Here are some ideas to get you started:

 

  • Create a landing page
    Instead of depending on your product page, create a custom landing page to boost sales and include the coupon code for extra coverage.

 

  • Send out an email newsletter
    Already have an email list full of dedicated customers? Don’t forget to let them know about your latest coupon codes and discounts. After all, not only are they more likely to buy, but 88% of shoppers prefer you to email their coupons, anyway.

 

  • Add it to a customer follow-up email
    Want to check-in after a purchase? Consider adding a coupon code if the product is similar. However, you should not use coupon codes as an incentive for a review, as that is against Amazon’s policy.

 

  • Chatbot campaigns
    Have a big audience on social media? More than 76% of shoppers use social media to discover coupons and discounts. While you can also post your coupons in groups or use deal-specific hashtags (such as #coupon, #AmazonDeals, and #couponcommunity), you can also set up automated chatbots to save yourself some time and energy. 

Ready to create your first coupon?

Amazon coupons are one more tool in your box to grow your business. As we’ve seen, they’re also simple to create. Make sure that the discounts you are giving make sense for your business goalswhether that’s gaining exposure or boosting sales. Then, use your coupon codes to match your marketing bandwidth.

We recommend creating landing page campaigns for your coupon code products and using those to capture email addresses, deliver coupons and  post-sale offers, and build relationships with your customers. For a limited time, in support of sellers navigating the challenges of COVID-19, we’re offering an extended trial of our starter plan (3 months!)

 

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