How do you boost sales by using Amazon sellers' coupons?

How do you boost sales by using Amazon sellers' coupons?

As prices and fulfillment costs rise each year, Amazon shoppers are constantly on the lookout for bargains. If a product they want is too expensive, they check if it comes with a promo. One of the things they hope to see is an orange banner below the price. This orange banner is the coupon.


What exactly is an Amazon Seller's coupon?


Amazon sellers have several promotional tools up their sleeves to satiate the consumer’s appetite for deals. Coupons are among them. These are discount promos meant to help buyers save money. They can be used for big selling events or when you simply want to generate more sales.


On Amazon, a coupon is indicated by the orange banner mentioned earlier. Next to it is a tick box, a text describing how much a buyer can save, and the discount terms. By ticking the box, a buyer can save up to 50% on their purchase.


Not all products come with a coupon. It is something a seller can set up on any of their products. You can set it up for one or multiple products. You can also combine it with other deals, such as promotions and Prime-exclusive discounts, to further sweeten your offer. Just make sure to understand Amazon’s multi-item discount terms and conditions


Are coupons beneficial to your Amazon business?


Like any other promotional tool, a coupon can benefit your Amazon business in a number of ways.

Whether you've just started or have been in business for a long time, you should incorporate this in your strategy to maximize the advertising and sales opportunities available on Amazon.


  1. New product: Launching a new product is risky because buyers have no reliable basis for their decision—There are no reviews or ratings yet. It’s like you’re telling them to take your word at face value. However, they might consider buying if they get a discount.


  1. Exceed target sales: Studies show that consumers who use coupons purchase 21% more than initially intended. Instead of buying just one item for full price, they buy two or more, believing they can save more.


  1. Off-season: There will be months when business is slow, and no money is coming in. You can stir things up by offering coupons with tempting markdowns.


  1. Gain reviews: Well-reviewed products sell more than newly listed ones that no one has tried. The problem is that convincing buyers to leave reviews is tough. However, recent statistics reveal that 53% of consumers tend to leave a review if they purchase a product using a coupon.


  1. Reduce stocks: If you are a wholesaler or private label, chances are you get supplies even during slow months. When inventory piles up, the supply chain can go haywire. Offering coupons can help relieve your warehouse and create more space for new supplies.


  1. Changing perception: Do you know why consumers tend to trust established brands more? That’s not just because they’ve proven themselves as reliable businesses but also because they don’t trust anyone else. Yet, a study shows that 65% of consumers claim receiving coupons changes their view of a brand.


Coupons vs. Promotions


If you go to the Advertising section of your Amazon Seller account, you’ll see that coupons and promotions are offered separately. That’s because they differ in the action they require from buyers. Promo-based discounts automatically apply, and you can immediately see the discounted price below the product thumbnail, while coupons have to be redeemed by ticking a box.


There’s a reason why Amazon decided to add ticking a box to the process of redeeming a coupon. They say that putting extra effort into getting what you want makes the purchase feel more rewarding. It is better than automatically showing a discounted price.


This isn’t to say promotions work less effectively than coupons in driving traffic to your Amazon store. Amazon eases the risk of showing a product’s discounted price after promotion by also showing the original price. The problem is that doing so might reduce the consumer’s expected price, making it almost impossible to bring the price up again without getting some sort of backlash. 


How to Create Coupons on Amazon


Here’s a step-by-step guide to creating a coupon for your product on Amazon:


Step 1: Go to “Coupons.”


On your Amazon Seller dashboard, click the hamburger icon on the top left corner of your screen to open the Menu. Then, scroll down to “Advertising” and choose “Coupons.” This leads to a landing page for creating, subscribing, and saving coupons.


This page provides details on the maximum discount you can offer through your coupon, which is 50%, and what will happen if you exceed this limit. You can also search for all the coupons you’ve ever created, including those that have expired or failed.


Step 2: Create a new coupon.


On the top right corner, click the button that says “Create a new coupon.” This is where you will create your coupon in three steps—select a product, provide details, and review. Amazon will recommend the products from your inventory to create coupons for. Choose one or more of those recommendations and click “Continue” at the top right corner of your screen.


Now that you’ve selected a product, it’s time to enter the details. First, decide how long before the coupon expires. You’ll be asked to provide a start date and an end date. The maximum duration for each coupon is three months. You also have to decide how you want the discount to apply. Would you like it to be a % off or a $ off?


Important: The minimum discount if you take % off is 5%, and the maximum is 50%. If you take $ off, the minimum is $1. Check the box below the tab where you entered the discount you want to apply that says, “Limit redemption to one per customer.” This will prevent customers from using the coupon to buy in bulk. Also, offering a coupon isn’t free. Amazon will charge you $0.60 per redeemed coupon. This is why Amazon also requires a minimum budget of $100 for each coupon you create.


The next step is to create a title for your coupon. This title should accurately describe your product. Avoid using terms such as “limited time” and “discount.” Click the link below the title tab to know what else Amazon prohibits when creating coupon titles.


Finally, choose a target market. Amazon will give you four options—All Customers, Amazon Prime members, Amazon Student members, and Amazon Family members. For optimal reach and sales, target All Customers. Then, hit “Continue.”


Step 3: Review and submit.


Make sure you’ve provided all the details Amazon needs to set up your coupon properly. When you’re sure everything is in order, click “Continue.” You’ll get a message confirming the receipt of your coupon submission and a couple of reminders on the next page.


Important: Unlike a product listing, you cannot update the details of a coupon once it’s been submitted and approved. If you really need to make changes, just delete the coupon and create a new one.


The Cons of Coupons


Offering coupons is not without its disadvantages. There are a few that you should take note of.


  1. Not only will you be responsible for the discount amount, but you’ll also have to pay a fee per redeemed coupon. You can deal with this by factoring Amazon’s fee into your profit calculation.


  1. There’s a chance you’ll lose money, particularly if your profit margins are too small. However, your brand can gain more exposure, which can have long-term benefits.


  1. If you’re not careful in setting up your coupon, buyers might take advantage of the discount by flipping your product on other platforms. Be sure to limit the redemption of your coupon to one per customer.


Grow Your Sales with Amazon Coupons Today!

Competition is cutthroat, even on Amazon. You need to put extra money and effort into product promotion to drive more traffic to your online business. Use coupons and other advertising tools to maximize Amazon’s rich market. Follow the tips in this article to get started. 

Back to blog