A brief discussion on how to avoid pitfalls when doing promotions/coupons/deals?

A brief discussion on how to avoid pitfalls when doing promotions/coupons/deals?

1. Coupon product requirements


Have a Professional Seller Account
• If the product has 1-4 reviews, the rating cannot be lower than 3.0
• If there are more than 5 reviews, the rating cannot be lower than 3.5
• Discount range: 5%~80% off
(Requires the discounted price to be at least 5% lower than the lowest price in the past 30 days
If you set money off, the discount cannot be less than 5%
If the listing price is increased and the discount is less than 5%, the coupon will be invalid)
Note: Amazon will automatically remove the coupon when the budget utilization rate reaches 80%; the cancellation may not take effect immediately because buyers who have received the coupon before the cancellation can use the coupon to check out before the official expiration date.


2. When to use coupon/promotion


• Coupon: When traffic decreases or rankings drop for two or three consecutive days, 10%-15% discount is generally offered. The promotion period is generally 3-5 days, usually no more than a week.
(The short time is set to adjust the activity at any time and the coupon has an additional traffic entrance to display the promotion that is about to end, so that it will be more exposed)
Suggestion: When setting the discount type, choose a dollar amount discount for high-value products and a percentage discount for low-value products.

• Promotion: New product promotion/clearance of slow-selling products/products that cannot be reported for flash sales. These products have little natural traffic on the site and advertising does not have a good effect. It is recommended to promote them through off-site promotion
Recommendation: Offer a 20%-30% discount on new products to break even, and offer a 50% or more discount on slow-selling products.


3. Promotion types and precautions


There are three main types of promotions: Single-use/ Group/ None, which means one-time/ unlimited/ none. It is easy to understand that "Single-use" is a long unique code that cannot be used again after one use, while "Group" is a short code that can be reused by N different customers. "None" does not require a promotion code and the promotion is automatically deducted at checkout.

Regardless of whether you use Single-use or Group, there are two types of discounts: Preferential and Unrestricted. This is very important. If you choose the wrong one, you will lose a lot of money.

Preferential: Preferential discount codes can be mixed with all unlimited discount codes or no discount codes. For multiple preferential discount codes, the most powerful promotion will be applied.

Unrestricted: Unrestricted coupon code mixed with all unrestricted coupon codes without any restrictions
 
Case Study
Xiao Wang sets a 30% promotion for product A, using the code type of "group" and an activity period of 8.7-8.20. Later, he found that not many people used the coupons, so he wanted to increase the promotion and set a 40% promotion from 8.15-8.30. If a customer receives two codes at the same time and uses them within a limited period, will the results be the same if he chooses preferential or unrestricted?

Analysis: If you choose the preferential type, you will be offered the most favorable promotion, which is a 40% discount.
If you choose the unrestricted type of discount, it will be superimposed, and you will enjoy a 70% discount
 
Precautions
When doing a promotion, no matter what type of discount you do, you must set the maximum purchase quantity and weight. I must say it three times: you must set the maximum purchase quantity. You must set the maximum purchase quantity!
You may have noticed that when you select the promotion type, the system will automatically check the box One redemption per customer. But don’t be fooled by this. Here is my case.
I once set a 99% code for a reviewer. Although I knew that such a high discount review would probably not have a VP mark, the profile provided by the reviewer was Top 50, which was very rare. I wanted to try it at the time, but he refused to accept a refund after the review or advance payment, saying that he had been cheated too many times and dared not provide PP. He only accepted a 99% code. So I made a 99% single code for him. When making the discount, I also paid special attention to the system automatically checking "One redemption per customer".
I thought it was foolproof, but the next day I found out that the reviewer bought 5 products in one order, and all of them were sold at 99% of the price. Why did he only buy 5? Because the maximum purchase quantity set by the backend order was 5. Later I thought about it carefully. There were 400 or 500 of that product in stock. If I didn't set the maximum purchase quantity at that time, wouldn't he have bought out my stock? It's really scary to think about it. I met a scammer who was taking advantage of me. Let me show you my order screenshots.

"One redemption per customer" literally means "each buyer can only use the discount code once." If product A is on sale and a customer buys multiple products in one order, then no matter which code is used, all products in the order will be discounted. Be careful and remember to set the maximum purchase quantity in the background!
 

4.Will coupons/ promotions/ deals be combined?


The answer is yes. Coupons can be stacked with each other, and promotions can also be stacked with each other!
Coupon, promotion and deals can also be combined at the same time!
 
Show a case

Coupon A is set on July 15th with a 40% discount. Event time: July 15th-July 21st
Promotion B is set on July 16th with a 20% discount. Activity time: July 16th-July 19th
On July 18, A was closed by Amazon and coupon C was re-set with a 40% discount. Event time: July 18-July 22

At that time, I wanted to take advantage of the popularity of Prime Day to clear the inventory, so I set up a 40% coupon and a 20% promotion on the site, and set it to invisible on the front end. At the same time, I posted a 60% discount outside the site. However, there were many people who claimed the coupons at that time, and the coupons were automatically closed when they exceeded 80%. At that time, I thought it was an Amazon bug, because many people on the forum reported that the coupons were delayed in display or automatically closed during the Prime Day. So I set a new coupon of 40%. As a result, some customers claimed 3 discount codes and used them at the same time, resulting in a 100% discount. The next day at work, I saw more than 20 orders, and I was very happy. Later, I found that almost all of them were free orders, and I felt very disappointed. Fortunately, the profit products filled these holes, otherwise I really don’t know how to explain to the boss.


5. Notes on Coupons/ Promotions/ Deals



• Before creating each campaign, check if there are any coupons/promotions running or deals that are about to start
• Each coupon/promotion campaign should not last too long, preferably no longer than two weeks
• Choose peak traffic periods for promotions, use big data to analyze traffic trends, and designate or conduct promotions in the optimal time periods, so that you can achieve twice the result with half the effort
• When doing promotional activities, you can increase the advertising efforts, and at the same time, you must set the maximum purchase quantity in the background
• After the discount or flash sale starts, you should check whether there are any abnormalities in the transaction price of the order in time; if the activities are accidentally overlapped, you should find a way to stop the loss immediately. Even if all promotions are turned off, the discount is still valid for those who have received the coupon but have not used it within the validity period. At this time, you need to increase the price appropriately or close the listing to avoid greater losses.

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