Amazon likes to release new feature when the hot seasons come. Today they just released a new feature in the SellerCentral: Coupons!
You can see that the coupon you set up will be shown directly on the frontend search result page on Amazon!
Before we dive into how to take advantage of this feature, let’s see the pros and cons of it first!
Pros:
- You can do targeting (e.g. target only Prime customers, target moms or students, or customers who have viewed or purchased certain ASIN (does not need to be your products).
- You can set up $ off or % off. You can also set a budget cap to avoid the loss from wrong settings (e.g. $100 worth of coupons per day)
- With these coupons, a little orange badge will be displayed on the listing in the search results. This will definitely help increase CTR. However, the conversion rate will still be determined by your listing optimization.
Cons:
- Amazon charges for this privilege. The cost is $0.60 per coupon used.
- It will take 4 days for the coupons to be active.
- Coupons can only be active for maximum 90 days.
Here are a few questions we received today about this new coupon feature on Amazon. Want to share with you guys:
Q: How about I increase my product price largely first then create a coupon with a huge discount to attract buyers?
A: Don’t do that! You could lose your buy box at the same time….
Q: How is the daily budget calculated?
A: Budget=($0.6+coupon value) x Used Times
Q: Why I cannot see this new feature in my SellerCentral?
A: Your seller account needs to have 3.5+ rating to have this feature.
How to Create a new coupon for your Amazon product?
Step 1: Cick Advertising>>Coupons
Step 2: Click “Get Started”
Step 3: Click “Create a new coupon”
Step 4: Add the ASIN/SKU that you want to set up coupons for.
All Done!
Last but not least, we want to share a few recommendations from our testing on this coupon feature.
- Recommend to high-profit product only! Amazon’s extra fee of $0.6 per coupon use will make the lower-priced products less profitable.
- For the lower-priced products, if you really want to try this feature, we recommend you to set up a % off instead of $ off. e.g. If your product is $10, then you should set up a 10% off coupon because $1 off looks like nothing…
- If your product is new and you want to improve its ranking fast, try setting up a coupon. Seems like coupon can help with the organic keyword ranking. We will test it for a longer time and let you guys know the result!
Now you can enjoy this Amazon new feature and let us know how it goes with your product!