Amazon coupons are the electronic equivalent of a voucher that entitles an individual to a discount of a certain amount on the price of a product. These are unique to Amazon and only relevant to products in the Amazon catalog.
In order to make a product more attractive and to boost sales, discounts can be offered. These can be a ‘blanket’ discount, offered as a general reduction of the price of the cost price of a product. However, the discount can also be offered on individual sales. These discounts are made available in the form of coupons or vouchers.
Coupons are made available in hard copy in newspapers and magazines, or perhaps in catalogs. The customer would literally cut out the coupon and present it when they pay for the product.
Amazon coupons function in the same way ad 'traditional' coupons, but are a ‘soft’ version of a traditional coupon and can be redeemed virtually when a product is bought from Amazon.
These coupons can be used in two ways:
They can be redeemed immediately when the product is bought.
They can also be ‘clipped’ and saved for future use.
All coupons offering a discount are indicated in the price box for each product in the Amazon catalog. There is also a dedicated coupon page, where all of these vouchers are listed. The coupons are also reflected in your shopping cart on Amazon.
Advertising is the key to boosting sales of a product. There are different ways in which to advertise a product and offering a discount is one of them.
Discounts can be offered as a percentage taken off the listed price, or as a dollar value. The latter appears to be more popular with customers as they can literally see the discount, rather than having to calculate it.
Specifically chosen audiences can be targeted by individual discounts and exclusive coupons. These are especially helpful for Private Label Amazon Sellers looking to build a brand due to it's boost in conversion percentage.
As attractive as coupons may seem, there are sometimes hidden costs involved. With coupons offering discounts on the platform, Amazon charges a price for each coupon redeemed. This means that the price paid on each Amazon Coupon must be factored into the costs of each item.
There may be some extra costs associated with Amazon coupons, but they also offer the chance to add to traffic and boost sales, which can lead to a boost in the ranking of the product on Amazon. Coupons should be factored into the overall cost of advertising for an item.