Optimizing Amazon Vendor Agreements and Pricing
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To set up, manage and view your promo codes or coupons. Go to the merchandising tab on your vendor, central dashboard and select coupons from the dropdown menu. To start a new campaign, click on the yellow, create a new campaign button to view your existing campaigns. Click on the campaign details alongside your campaign.
show moreOn this next page, you can download the campaign details as a spreadsheet view, the legal agreement view the metrics and view the invoices. It is important to note that the name of your legal agreement for your coupons or promo codes is the vendor powered coupon agreement, which is shortened to VPC and appears with its own identification number on your remittances when deducted.
You can also find this agreement on your agreements page in the dropdown menu of the settings tab on vendor central and under the co-op section of your agreements page, you can also find more information on the coupons or promo code campaigns in your vendor, central support center, under resources and beneath the selling your products hitting as this course is not only about your agreements on vendor central.
One of which is this promo code or coupon campaign or vendor powered coupon agreement. It’s also about working with margins within Amazon, therefore knowing what the minimum maximum expense would be for your promo codes or coupons campaigns can assist you upfront when calculating your original cost to Amazon, allowing you the necessary buffer to run these types of campaign.
If you do not intend to allocate these kinds of expenses to a marketing budget customers increasingly get used to always receiving a discount on websites when they sign in for a newsletter, meaning a five to 10% discount almost has no value anymore. The discount highly depends on the product and category, a low priced FMCG product.
Like a body lotion could be attractive with a five to 10% coupon. If the website hardly ever offers it, if they do the discount should be slightly higher. Otherwise, where would be the incentive on buying it on Amazon top selling products priced somewhere between 40 and a hundred dollars. We recommend to discount with 10 to 15%, but only temporarily and only if discounting is not a standard market segment activity on the vendor’s website.
Again, where is the incentive? Otherwise slow movers priced somewhere between 40 and a hundred dollars. We recommend to discount 30 to 50% here. You really want to create a momentum to convert a slow mover into a top seller, sometimes breaking even, or even temporarily making a loss is not a bad thing. If the products pick up afterwards, Not discounting a slow mover results in Amazon, not ordering your product at all, or not being able to sell existing stock at Amazon, which in the end will force Amazon to talk to a vendor into other solutions.
But then again, a 30 to 50% discount needs to fit into the corporate pricing strategy, which will not allow it for all businesses. We don’t recommend promo codes and coupons for high end product. It mostly sends the wrong signal about the brand to the customer lightning deals or daily deals would be more applicable.