Does Amazon charge advertising fees for coupons? How to set up coupons?

In fact, whether you are an old seller who has opened a store for a while or a novice seller who has just registered and opened a store, you may encounter various problems when operating a store, such as the problem of Amazon coupons. Today, I will mainly talk about whether Amazon coupons charge advertising fees?

The cost of Amazon coupons can be divided into two parts:

1. Discount amount: Sellers can calculate it according to (original price - discounted price) x number of coupons

2. Handling Fee: Amazon will charge a certain handling fee for any successful redemption of coupons, for example, $0.6 for North American and European sites, and 60 yen for Japanese sites.

Every time a coupon is successfully redeemed, the discount amount and handling fee will be deducted from the budget until the budget is zero; the minimum budget for the North American and European sites is US$100/day, and for the Japanese site it is JPY 10,000/day.

If you want coupons to bring better effects to products and stores, sellers must be clear about the following rules.

1. The coupon is valid for up to 90 days and will take effect 6 hours after submission.

2. Using it together with other promotions may result in additional discounts.

3. For ineligible products, buyers cannot see the coupon, but the coupon is still valid.

4. If an Amazon product loses coupon eligibility due to low inventory, product rating, etc. after the coupon is activated, the platform will immediately disable the coupon.

5. After the coupon is activated, only the duration can be extended (up to 3 months) or the budget can be increased. Other modifications require re-creating the coupon.

What works best: a dollar-off coupon or a discounted rate coupon?

What we found interesting about this new coupon feature is that the dollars taken from the coupons worked best.

I was surprised when I saw the results. But, in my opinion, I think the reason dollar-off coupons work best is because people shop on Amazon. Most people don’t want to do the math.

They want to buy something and then go buy the next thing.

So, let's say I told you that I sold an item for $33.95, a 5% discount. You have to figure out for yourself how much you're going to pay. The math in percentages is a lot more complicated than the math in dollars.

Calculating it as a percentage, you might think, "Okay, what's 5% of $33.95?" You would then have to subtract that amount from the original price to determine the final price.

However, if I gave you roughly the same discount in dollar terms (in this example, a total of $2), then all you need to do is subtract:

$33.95 – $2 = $31.95

In addition to being easier to use for shoppers, the Dollars Off coupon also returned a 43% redemption rate when we tested it, versus a 32% redemption rate for the Dollars Off coupon. So, with the Dollars Off coupon winning, we’re sticking with the Dollars Off coupon.

It is important to note that as a seller you cannot use Amazon coupons as if you are losing money. It is a form of paid advertising. It makes your products look more profitable compared to your competitors.

Recommended reading:

Can the Amazon payment account not be a legal person? How to operate a store?

How to cancel Amazon account? What are the rules?

How to do personal Amazon e-commerce? What are the advantages?