Kris and Dustin discuss all things related to Lightning Deals, Coupons, and Promotions on Amazon. Something all Amazon sellers should know about.
See more of Dustin and Kris on our YouTube channel: https://www.youtube.com/channel/UCImqJsK7Ru_hC2ZLnBC_f_Q
Listen To – Two Amazon Sellers And A Microphone Podcast On These Platforms:
Find Us On Social Media:
➜ Facebook: https://www.facebook.com/sellozo
➜ Instagram: https://www.instagram.com/sellozoofficial
➜ LinkedIn: https://www.linkedin.com/company/sellozo
➜ Pinterest: https://www.pinterest.com/sellozooffi
➜ Twitter: https://twitter.com/sellozoofficial
➜ YouTube: https://www.youtube.com/c/Sellozo
Read The Full Text Here
– It’s like hammering.
– Still hammering?
– A little bit. Just hammer through some microphone. Technical issues here buddy.
– How’s the sound? Mic check, check.
– That’s way better.
– Sounds better?
– Yep, Alright, here we go. Hello everyone. And welcome to episode nine of Two Amazon Sellers and a Microphone. I’m Dustin Kane and with me is as always is Kris Gramlich. How are you doing?
– Good, Dustin’s Red Friday, big game this weekend. I know people probably don’t wanna hear about the chiefs all the time, but we’re excited.
– Yeah, sorry. We have to say it every time. We will be talking about the chiefs periodically, but yeah, it is Red Friday and it is also the day we’re gonna be talking about Lightning Deals, coupons, promotions that you can use on Amazon, what they are. We’re gonna talk briefly about what they are, good ways to use them, how they can benefit you. I know Kris you and I have both used a lot of these for our products in the past and currently. So it’d be fun to talk about just different strategies that we’ve done with them. You’re ready? Do you want to get in?
– Yeah, let’s do some stuff here.
– Alright, why don’t we talk first, ’cause really there’s basically three types. There is Lightning Deals, there are coupons you can offer, and then there’s different promotions that you can offer. Amazon, you know, they’ve they’ve expanded this, they’ve been adding new offerings. You just did a second ago, you showed me a new thing that I didn’t know that they were doing with price drops. So we’ll talk about that as well. But let’s start with with Lightning Deals, what they are and how you use them. So just give a little brief overview of what a Lightning Deal is.
– Yeah, it’s basically a period of time where your product is gonna have a cheaper price. You’re gonna give an offer and it’s normally about six hours but you’re gonna run a deal on your listing on your product, just to kind of generate more sales get some more traffic to your listing and you will see an increase. But this is a short period of time that it gets about six hours. You submit these through your Seller Central Account. There’s a section underneath the Advertising tab where you could submit deals. And Lightning Deals do cost money. They’re not cheap. Before get out, I guess they’re okay. It’s $150 $150 each time, but you should easily get that back through the deal. Yeah, you just submit a deal to Amazon, and then they will kind of come back to you and let you know when your deal is gonna be live. You can always delete it or decline it if you don’t wanna run it, you know, at 2:00 AM. But yeah, they run six hours. It’s a short period of time for you to promote your product.
– Yep, I love Lightning Deals especially I use them a lot when I was launching a product or you want to boost the ranking real quick. You get a lot of residual velocity after the Lightning Deal is over. A couple of things about Lightning Deals also is your product has to be eligible for them. I’m not sure what algorithm Amazon is using to make them eligible. But if you go to the deals part or the Lightning Deals section it’ll show you what products you can do a Lightning Deal for. You also can’t choose what time it’s going to show. Typically the first time you run a Lightning Deal like you’re talking about, Amazon’s gonna give you some weird time, That’d be like Sunday at 2 in the morning.
– When your Lightning Deal goes live. But if your product is popular or it’s got a lot of good velocity, now you start getting into some sweeter times and you can also do Lightning Deals on the big days like Black Friday and Prime Day, and they charge you more. Typically it’s $300 to run the Lightning Deal on those days. But the another advantage to Lightning Deals is your product shows up on their Deals page. So a lot of shoppers they’ll go that’s where you get a lot of this extra traffic, like not only do you have all the badges and stuff on your listing, but you also now show up on their Deals page where people search daily to see what they can get a bargain on. So they’re great. And you do have to offer some sort of discount. They have a minimum discount they have to offer and you have to have a minimum certain amount of inventory as well. Minimum that you’re willing to offer for the Lightning Deal.
– But yeah, they are fantastic to run. I have always, I use them like we were talking about leading up to Prime Day, et cetera. If you’re eligible for these, that can give your product a boost. That way you’re getting maybe increase your organic rankings before Prime Day. So I love Lightning Deals.
– Yeah, they are fun. A lot of people get kind of nervous ’cause the price is a little bit lower. But what I look at this as is just a way to increase your rank on your product. It’s kind of a, it’s a short term thing. It only takes six hours to run. But what you’re doing is you’re getting your product out there to more people that you’re gathering more reviews. So it’s a long-term play. So again, it’s just a way to kind of differentiate yourself from your competitors and try to get some sales from there during that short period of time.
– Yeah, absolutely. I’ve had many Lightning Deals where I’ve broken even after the deal or lost a lot of money but the velocity you get afterwards is well worth it. Alright. Oh, your screen is going crazy.
– Yeah, I don’t know what happened in there.
– Yeah, for those of you that are on the podcast, we’re also live streaming this on Facebook and we’ll be adding other platforms. We’ll be livestream too as well in the future. But people want to see what we’re doing on the screen, you can join us on just like the Sellozo Facebook page. Alright, so are we looking at some more Lightning Deals here, Kris?
– Yeah, just to kind of show people if they’re joining us, what that looks like, you know, they kind of give you a countdown 74% claimed, there’s two hours left on this deal. A quick tip on here. This is something I’ve done. And it works out really, really well is you know the quantity that you offer during the Lightning Deal, Amazon kind of gives you a minimum threshold. So let’s say it’s 40 units, so if you offer 40 units during that six-hour timeframe, you may sell very quickly that 40 units. You can always go into your account and just click Edit, and you can add more units to the deal. So you could sell more during that time. So like this seller here he’s got 74% claimed, his deal ends in two hours. If you wanted to, he could go into here, edit this deal and just add more quantity available. And this would lower down the percentage and potentially give him more units that he could sell during this two hours.
– Yeah, and I’ve done this before on purpose because when you see that as a shopper that it’s almost out like it’s psychological. Like I gotta buy this now. It’s 74% have been claimed. So if you start with their minimum and then you sell through and you’re willing to sit around there, you can just slowly increase, so that way you always stay close to the deal being done.
– And you get that urgency from the buyer which shows that your product appears to be extraordinarily popular.
– Yeah, that’s a good tip.
– There are a lot of really interesting strategies that you can. Now if you don’t wanna sit there and do that, you better make sure you put your thing high.
– So yeah, that’s really cool. Anything you want to touch on more with the Lightning Deals?
– No, I think it’s good. I would always run them. Amazon does track if you’re using them. So if you always decline them or you don’t run them you may not get access to those on your newer products in the future. So I just run them just because I wanna show Amazon that I’m willing to run these.
– And I wanna be able to get all my products on these deals. I have done a few in the past where I’ve declined them and I’ve never like, I haven’t seen the deal in a couple of months and I’m like, where’s my deals at. So now I just like anytime I get a chance, I’ll run it just to kind of help with the velocity and get the sales rank up.
– I think that’s smart. I have products that are good sellers that I’ve never been offered a Lightning Deal on. So I don’t know what their algorithm is and I have others that alright after I launch it, it’s eligible. So I’m sure maybe we’ll bring somebody on in the future that can tell us how Amazon’s deal algorithm works. That’d be nice to figure out ways to get more options on Lightning Deals. Alright, moving on, you wanna talk about some different options with coupons?
– Yeah, so also another feature in your account you could run these little coupons on your listing where you can select how much money a customer can receive as a discount when they apply this coupon to their checkout. And the way you’ll know is that when you look in Search, you’ll see like this neon green badge underneath the price that says save $2 or save 5% with this coupon and what that seller’s doing-
– And that button is eye-catching by the way.
– Yeah, it’s perfect. You know, a lot of people don’t use this. So as a seller, this can really like make your listing stand out and grab that customer’s attention. ‘Cause, not a lot of people are using this. Like you can see on this page, there’s only like two here’s, maybe those are the same one-two, three, four, like not that many people are doing this. So either they forgot to do it or they let it expire. But this would be a way to like grab that attention and try to get people to obviously come to your listing and then obviously convert and make a sale. So you can pick the percentage, it has to be at least 5%, in my experience I’ve seen that if you do a dollar amount, it’s easier for you to get that conversion ’cause the customer doesn’t have to figure out what 5% of the price is. They know they’re gonna save a dollar or $2 at least. And this is a short period of time. You don’t have to always like run these. You can pick a budget. So like you could say, “Hey, Amazon, I’m willing to spend $500 to run these coupons.” ‘Cause, there is a fee with this. I think it’s 60 cents per claim or something. But yeah, you just give a budget and you can run these short period of time. These are good for like when you’re launching a product you can offer a really aggressive discount to try to get people to come through organically. ‘Cause when they gonna type in your search term or the keywords that you’re targeting. You’re obviously gonna be running ads on these keywords that you’re targeting. But if your listing shows up with that coupon, you’re likely to get that click because you got that running and your competitor doesn’t so this is a good way to like get that velocity going into your listing. And obviously, you’re gonna rank organically better, the more that people buy.
– Sure. And it’s a way that you can raise your retail price show potentially that your product is higher quality and then offer the coupon where they’re getting it for the same price as your competitor or below. So there’s some really good just optics that you can do with coupons that can make your product look like it’s better value. And then obviously they are getting a deal and customers for whatever reason, whenever they’re getting a deal it’s like something psychological happens. Like if you get $5 off a $15 product and then the there’s one right next to it, that’s $9. Even though that $9 one is actual cheaper, for some reason, you’re saving $5 on this one and that’s just a better value add. So there is a lot. And also like we talked about there’s only a few ways where you can make your listing pop if coupons are right on the listing. And so those right there are differentiator. And like we were talking about it’s green, it’s so eye-catching, it makes you stop on that one and figure out, “Why is there a green there?” You wanna know what’s going on so I can stop you when people are scrolling.
– Yeah. I mean, it just pops like, look at that. It just sticks right out.
– So there’s yeah. You just gotta make sure you got to work the numbers make sure you’re calculating in that 60 cent fee. Make sure you’re calculating in what that discount’s gonna do and then test them out. Test them out on your products.
– Yeah. What I’ve seen is like, sorry to cut you off there, but like not a lot of people claim these. They’ll go to your listing but for whatever reason, like they forget to click it or they just don’t go with it, I don’t know. But from what I’ve seen is you’ll get the traffic but like maybe half only claim the deal.
– Yeah, it’s interesting because all they have to do is check the box and then add it to their cart. And so I think a lot of times they just they click that, the one-button Order and they just forget the coupon. Yeah, so there’s, you just have to check that box right there to actually clip it and save it, and then it’ll apply the discount code. And so they miss it. They miss and you’re right. You’re right.
– A lot of people don’t even click it. They just go and click that Buy Now.
– Alright, now let’s talk about another thing that you can do. And this is another thing that, and we’ll then we’ll go in general about all the deals. We’ll talk a little bit more about them, but there’s also promotions you can offer. Like buy one, get one, or if you buy this product you can buy another product in your catalog for 10% off. Those are different promotions you can set up and you can do that real easily just by going into the promotions tab under advertising in your Seller Central Account. These I’ve used really well when I’m launching a new product. So if I have a really good seller and I’ve launched a product, that’s a similar product or it’s the same brand or et cetera, I will launch a promotion where if they buy this product, they get this new product, I just launched, for whatever, 50% off, 75% off, something really attractive. And so that starts, you’re using the organic traffic to your good seller, to now generate sales on other products and that’ll help move them up. There’s really good things that you can do there. And this shows up right on your listing for your product. If you scroll down there’s a section that says Special Offers and Promotions. And with that, all they have to do is click the Add to Cart button and it will add that other product and the promotion to their account, sorry, to their cart. So these are good. And this is just another thing again that can add content and value to your product listing.
– Yeah, like we’re looking at one here. This guy is selling Coasters but he has a offer where you save 10% on his lunch bag. When you add the Coasters to the cart, you can add both or his Ice Cube Trays. So like this is like to your point. This is a really good way to promote a new product that you have launched. And you can do a deep discount on this and try to get them to buy together. So yeah, not a lot of people use this either.
– No, they don’t use it hardly at all, but you can also use it to get them to buy more, like 10% off if you buy two, 20% off if you buy three. But yeah, the biggest success with promotions for me is, whenever I launch a new product I can use all my other products to drive traffic and drive sales to that new product, especially if they’re related. I love all the promotions. That’s it’s stuff that I leave on always, I don’t ever take them off, so I have different promotions that link back to all my other products. They’re very, very successful. Alright, any other tricks, Kris? Why don’t you talk about this new discovery you made about what happens when you just lower your price.
– You don’t even do anything. You’re not even setting anything up. Is Amazon now alerting or giving some sort of badge that people should know?
– Yeah, I had it on my screen but I can’t find it now, but if you haven’t changed your price in like the last 30 days if you go into your price and change it let’s say your price was 1799 and you lower your price to 1599 and you just submit it. You haven’t changed your price within the last 30 days, Amazon will then add this little red box to your listing, to the detail page. So when somebody is searching through here it’ll say like save 10% and underneath that it I’ll say lowest price in the last 30 days. And it’s a red box. So not only that is gonna show up on the detail page, but if you’re gonna have a coupon, you’re gonna have a neon green box underneath the pricing. So I mean there’s a lot of things that can really drive the attention to your listing. So if you never lowered your price in 30 days, go lower your price, a dollar or $2. And you’ll see the show up on your listing, especially in Search. And this will really catch the eye of consumers. I did this on one of my products. I’m starting to see sales organically but I’m not even promoting it. I’m just letting it kind of run organically. And just people are coming in, they’re finding it ’cause that red box is showing up in search and it’s there, and it says lowest price in 30 days. So that’s a nice thing to have.
– Absolutely. Yeah, all of these things, these Lightning Deals, coupons, promotions they’re all tools that you can use that Amazon offers, and all of them will help differentiate your product, make your product more attractive, drive more attention to your listings. So you should be using them. And you can use them in conjunction. Be careful if you do that, it may not work. But if you have a $2 off coupon running for your product that you’ve got currently in a Lightning Deal and it’s a discounted price, yeah, you might be giving away a lot of revenue there but that could be really attractive as well. So you can definitely use them in conjunction. Just make sure you’ve made all your calculations that you need before you do that. But you should definitely be utilizing as many of these things as you can to compete.
– No doubt. Let’s touch on a couple more things that I think people would probably get some use out of, is if your product is enrolled in the Subscribe and Save Program, you can run these coupon deals on your product and what makes it different than a product that’s not in these Subscribe and Save deals is the coupon says save an extra whatever on your first Subscribe and Save Order. So what that’s gonna do is allow you to get more subscriptions for your product which in the long run is gonna help you sell more. You don’t have to spend as much on advertising because you’ve already acquired that customer. So if your product is enrolled in the Subscribe and Save program, I would highly recommend running some type of coupon that’s like a massive discount, like 50% off, 30% off, 40% off, and that’s only gonna happen on their first Subscribe and Save Order. That’s gonna give you a subscription. And then the next order that customer gets is gonna be more of a full-price buy. So you’re getting people in to get subscribers. Once you get, you know, 100, 200, 500, 1000 subscribers, whatever that number is for you, now you don’t have to run as much ads because you’ve got that set of subscribers. So again, this is a long-term play, so you’re getting subscribers to your listing.
– That’s a great, great tip there, Kris. And so you’re saying they can’t use that coupon unless they’ve subscribed and saved for that product.
– Right. So you save an extra $2, yeah.
– They can’t use it as a one-off purchase, they have to go in. So that’s a fantastic way to drive that. Yeah, that can be a lot of future sales at full retail price right there with no advertising. Any other quick tips you wanna throw out there?
– Yeah, some of you guys may have noticed that Amazon rolled out these bundles, FBA bundles where you can now create bundles of your items. And these are gonna show up on the Product detail page underneath the main image. You’ll see where it says, “make it a bundle.” And there’s gonna be items where these are items that you create bundles. And you just give maybe a little bit of a discount if they buy another product. So what I’m showing here is I looked up a coaster a set of coasters, and this seller is offering a bundle on his other sets of coasters. So he’s got different styles he’s got different colors of coasters. So if I wanted to buy more than one set of coaster I can buy a bundle that he’s already had pre-made of the main product here and another product that he has. So these are available. You should look into creating these bundles. It’s pretty simple to do it. I’ve done it on a few of my listings and it can help generate those order value go up. So you can get more sales on your other items and maybe kind of promote maybe a newer skew or maybe liquidate something that you’re trying to get rid of.
– That’s actually an easier way for the customer to do what we’re talking about earlier with those promotions. A little bit more visual they’re actually looking and seeing they’re creating their own bundle. And there’s obviously a discount when you combine the two there’s some sort of discounts though. And I like this. I like this a lot bundles, I’ve used bundles successfully as well. They’re another great tool, we should be using all of them.
– There’s so much. I mean, we haven’t even touched about like Vine, Amazon Vine. That’s another thing we can talk about in the future, but there’s so many different ways that you can promote your product. And this is all like to get that flywheel rolled on, to get your product start selling. And hopefully, you guys understand that this is a long-term play. You know, you can start generating sales and then you’ll always have to do these, but these do help.
– Absolutely. Well, Kris, that was fun. I think we covered a lot there. We can obviously dive into each one of those and spend an hour talking about each one individually.
– But we covered a lot. I encourage you guys out there if you got products right now experiment with all these deals and coupons and promotions that you can do to help boost your sales. Another fun episode Kris, we’ll be back at it, I guess what’s today, Friday. Oh, we’ll get back out on-
– Yeah, we’ll make sure we talk about how the Chiefs beat the Patriots on Monday.
– Please don’t trick us.
– I know, I know. I think Kris super fun and we’ll see everybody on the next episode. Have a good one.
– To you.