No matter how amazing the product, how phenomenal the price, or how finely composed the listing, one of the challenges that any Amazon seller faces is listing visibility. Your ideal customer cannot purchase your product if they do not know that it exists. Utilizing Amazon’s coupon clipping feature can help you to increase both your visibility and your sales.
Coupon clippings are essentially the same as their real-world counterparts. Customers on Amazon can virtually “clip” the coupons you set up and the savings are applied to their purchase at check out. In addition to the incentive of a discount that is given to customers, coupon clippings help boost your visibility.
Not only do these clippings appear on your listing, but they also are compiled in a virtual “circular” on Amazon’s website. All of the clippings that are currently active amongst Amazon sellers are sorted here by category. This gives you an opportunity to put your product in front of customers who are looking for your product but who might not have otherwise known that it existed.
When setting up coupon clippings in Seller Central, it is important to understand exactly how they work. To begin, you will need to set a budget for the clipping. The budget you set for your coupon will be used for both the USD equivalent of the discount you are offering and the fee Amazon charges you each time a coupon is redeemed (currently this fee is set at $0.60 per redemption). Once the budget you’ve set for the clipping is depleted, your coupon deactivates.
For example, let’s say you are offering a $4.00 off coupon on a $25.00 item and the first day your coupon becomes active 50 customers redeem it by purchasing your product for $21.00 after clipping the coupon. This is how you would calculate the cost regarding these transactions:
(USD equivalent of the discount you are offering times the number of redemptions) + (redemption fees times the number of redemptions) = ($4.00 * 50) + ($0.60 * 50) = $200 + $30 = $230
The next day, your budget will be decreased by $230 as a result of customer interest.
When setting a budget, please keep in mind that you can always increase your budget, but you may not decrease it. It’s also important to note that if you do not use your entire budget, you won’t be charged that money. For example, if you set a $2,000 budget and $1,500 is used, you will only be charged the $1,500.
Our clients have had great results when using coupon clippings. Here is an example of one of our clients’ actual numbers:
As you can see, the return on investment for coupon clippings is well worth it! Factor in the increase in exposure, the possibility of repeat or subscribe and save customers, and a larger pool of customers for reviews and there should only be one question remaining: How quickly can you set up your first coupon clipping?