Generating a 60x increase in sales, 150x increase in listing traffic, and 80x increase in orders is no small feat. But surprising as it may sound, these are the kind of results Kaspien’s Amazon marketing specialists have seen when running Amazon Deals. Whether you’re looking to clear out inventory, expand interest in a new product, or incentivize purchase around a particular holiday or event, choosing to create Amazon Deals can be a profitable way to grow traffic and sales.
What Are Amazon Deals?
Deals are a large part of the shopping experience on Amazon. They provide extra incentive to pull the trigger, especially on luxury and pricier items. Amazon determines most of the terms for deals, but sellers get to select which deals to run. There are three types of deals, each suited to different goals: 7-Day Deals, Lightning Deals, and Deal of the Day.
The Deals Dashboard
Deals are listed on the Deal Dashboard. From the dashboard, you can view a list of all available deals for your entire catalog or you can search for a specific ASIN. The dashboard lists:
- What type of deals the ASIN is eligible for
- The date range that the deal would be offered
- The price at which the product would be offered within the deal
- The minimum quantity of products that would need to be dedicated to the deal, although you can add more (once it runs out, the deal is over!)
- How much the deal will cost you to run
Let’s explore the types of deals you’ll see in the dashboard.
Requirements for Amazon Deals
To host a deal, sellers must have at least five seller feedback ratings per month and an overall rating of at least 3.5 stars. Monitor the Account Health Dashboard and Customer Feedback Manager to make sure your rating stays high enough. The promoted product must also:
- Have sales history in Amazon Stores
- At least a 3-star product rating (though we recommend only promoting ASINs with 3.5+ stars)
- Include many variations in color, size, etc. (especially in clothing & shoes)
- Not be a restricted product or be offensive or inappropriate
- New condition
- Prime eligible in all US states and Puerto Rico
- Compliant with customer product reviews policies
- Compliant with pricing policies
- Compliant with deal frequency policies
Amazon’s Lightning Deals are some of their most popular forms of promotion on the marketplace. This type of deal is over in a flash, running a maximum of 6 hours before it expires. Shoppers access these deals on the “Amazon’s Deal” page. Amazon displays the time remaining and percentage of units still available on the deal, creating a sense of urgency that encourages shoppers to purchase while the price is low.
By increasing sales velocity, Lightning Deals also improve organic product rank, which means that even after the deal ends, the product is better positioned than it was before the deal. This results in a halo effect for the product and related items, driving additional sales. These effects can be amplified even further by targeting these products with advertising, leading more eyes to the deal. Use Lightning Deals to improve brand awareness, increase incremental sales, boost sales rank, win the Buy Box, and move stagnant inventory.
Fees range from $150-$600 per ASIN, depending on the time of year and the product category. Expect deals to increase steeply around large Amazon events, such as Prime Day and Cyber Monday.
Deal of the Day
These are similar to Lightning Deals but have a longer time span. These deals, like the name suggests, are available for 24 hours and are found on the “Today’s Deal” page. These deals have an orange “Deal of the Day” symbol located above the discounted price.
The difference with Deal of the Day is that they cannot be arranged through the Deal Dashboard. They are coordinated through a dedicated Amazon Account Manger by invitation only. They don’t have a set fee, but Amazon will only offer these deals to sellers with a proven high sales record.
Amazon 7-Day Deals
These deals are found on the “Amazon Deals” page and receive a “Limited Time Deal” badge on the search engine results page (SERP). 7-Day Deals have a base fee of usually around $300. For larger shopping events – like Black Friday – this fee can be around $1,000. Due to this extreme price fluctuation, it is important to take your projected sales and promotional budget into account when scheduling the deal.
How to Create Deals on Amazon
The process of creating a deal is fairly straightforward. Navigate to the Deal Dashboard and click the button in the upper-righthand corner, labeled “Create a New Deal.” Amazon then walks you through a very simple 4-step process.