Do you struggle to understand the difference between the types of deals Amazon offers? Which one is the best for your brand, or certain products? In this article, we will walk through the Lightning Deal, what it entails, the eligibility requirements, and the pros and cons of using this deal.

What is a Lightning Deal on Amazon?

A Lightning Deal is a limited-time promotion that offers a discount on a specific product for a period of typically 4-12 hours, or until the deal has been fully claimed by customers, whichever comes first. Once approved to run the deal, the seller can select a product to offer as a Lightning Deal, set the discount amount, and specify the start and end time of the promotion. During the promotion period, the product will be featured prominently on the Amazon homepage, as well as on the product detail page and in search results.

What are the eligibility requirements for a seller to run a Lightning Deal?

• Must be a Professional Seller
• At least a 3.5-star rating
• The product must be a Prime item
• New Condition

What are the pros of running a Lightning Deal on Amazon?

• Increased visibility: Lightning Deals are prominently featured on Amazon’s Deals page and are heavily promoted by the platform to its vast customer base. This can increase the visibility of your products and potentially lead to more sales.
• Limited-time offer: Lightning Deals are only available for a limited time (usually 4 to 6 hours), which can create a sense of urgency and encourage customers to purchase before the deal expires.
• Competitive advantage: By offering a discount during a Lightning Deal, you can gain a competitive advantage over other sellers offering similar products on Amazon. This can help you attract more customers and generate more sales.
• Increased sales: Lightning Deals can be a great way to increase sales and move inventory quickly. By offering a discount, you can incentivize customers to buy your products and potentially generate a significant amount of revenue during the promotion.

What are the cons of running a Lightning Deal on Amazon?

• Limited inventory: Lightning Deals require you to offer a limited quantity of your products at a discounted price. This means that you may need to carefully manage your inventory to ensure that you don’t run out of stock too quickly.
• Reduced profit margins: Offering a discount during a Lightning Deal means that you’ll be selling your products at a lower price than usual. This can reduce your profit margins, especially if you’re already operating on thin margins.
• Cost of advertising: While Lightning Deals are heavily promoted by Amazon, you may still need to invest in additional advertising to get the most out of the promotion. This can add to your overall costs and reduce your profitability.
• Possible increase in returns: Offering a discount can attract customers who may be more price-sensitive and less likely to keep your products. This can lead to an increase in returns and potentially reduce your overall profitability.

Are you interested in other types of promotions and discounts available to sellers on Amazon? Make sure to check out our blog to get a complete understanding of which deal is best for you. If you have further questions, reach out to us at hello@momentumcommerce.com