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 Percentage-Off offering, what it entails, the eligibility requirements, and the pros and cons of running this promotion.

What is a Percentage-Off offering on Amazon?

A Percentage-Off promotion is a marketing strategy used by Amazon Sellers to offer customers a discount on the price of their products. With this type of promotion, sellers offer a percentage discount off the regular price of a product. For example, a seller may offer a 20% discount on a product that normally sells for $50, which would bring the price down to $40. Amazon Sellers can set up Percentage-Off promotions through the Amazon Advertising Console. They can select the products they want to promote and set the discount percentage they would like to offer.

The promotion can be applied to all customers or targeted to specific customer groups, such as Amazon Prime members or customers who have previously purchased from the seller’s store. Percentage-Off promotions can be a powerful tool for Amazon Sellers to increase sales and attract new customers. They can create a sense of urgency for shoppers and encourage them to make a purchase before the promotion ends. However, it’s important for sellers to carefully consider the costs and benefits of offering discounts, as it can impact their profitability and brand perception in the long run.

What are the eligibility requirements to run Percentage-Off promotions on Amazon?

• Professional Seller

What are the pros of running Percentage-Off promotions on Amazon?

• Increased sales: Offering a discount can incentivize customers to make a purchase and increase sales for the seller.
• Attract new customers: Discounts can also attract new customers who may be more likely to try out a product if it’s offered at a lower price.
• Boost visibility: Promotions can increase a product’s visibility on Amazon and improve its chances of being seen by potential customers.
• Create a sense of urgency: Limited-time promotions can create a sense of urgency for customers and encourage them to make a purchase before the discount expires.

What are the cons of running Percentage-Off promotions on Amazon?

• Reduced profitability: Offering discounts can reduce a seller’s profit margins on a product and impact their overall profitability.
• Brand perception: Offering too many discounts or too high of a discount can negatively impact a seller’s brand perception and reduce the perceived value of their products.
• Customer expectations: If customers become accustomed to discounts, they may be less likely to purchase a product at full price in the future.
• Loss of control: Promotions can attract a large number of customers and lead to inventory shortages, which can be difficult for sellers to manage and result in negative customer experiences.

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