Amazon Prime Day can be a great opportunity to increase sales with a timed promotion event, but there is no reason why you can’t use vouchers/deals throughout the year to help increase sales velocity and boost product rankings.
What is Amazon Sales Velocity?
Amazon defines sales velocity as the number and monetary amount of Seller account transactions during any given month. A high sales velocity is a key performance indicator for an Amazon account, so its A9 ranking algorithm analyses sales results and increases the sales rank for products that sell well.
Probably the easiest thing you can do to increase your Amazon sales velocity is to simply have a sale. Amazon might be online but that doesn’t change the fundamentals of retail and the good ‘old-fashioned’ strategy of putting things on sale to increase purchases is still very much valid.
It’s going to increase the attractiveness of your products to customers and can also help you disrupt your customers’ pre planned shopping decisions. There might be for example, a customer looking for a particular product, and they might have a certain brand in mind already. If they see your voucher, they are more likely to buy your product over a competitor. It can easily sway people’s decisions and make them try a new brand they have not tried before, because people love money off. So, vouchers are really going to help you get your brand out there. Amazon vouchers are visible to shoppers on the Amazon search results page, as well as the product details page.
What are the different types?
Now there’s three different types of promotions you can do and you might use them for different reasons.
The main one being just a typical percentage off offer on a product and you can do this using a code or just by having it available to everyone. A great advantage of having the code is that you can use it for seasonal events, holiday events like Black Friday, you can have a little code to give people incentive to buy from you during special holiday events and gain some traffic and attention during these kind of elevated shopping periods. Another reason that codes are great is that you get the exclusivity you can kind of allow only specific audience of yours to receive the product at a reduced price who then might go to show their friends, family, share the code with them, if that’s something you allow, you can put it so it’s a onetime use code. But if you have own Shopify store, you have your own newsletter then you can provide a specific code only to subscribers of that newsletter, giving them a benefit for following your newsletter and things like that.
Another promotion you can do is free delivery. And the great thing about the free delivery option is you can determine which type of free delivery you’re choosing. So whether it’s standard, express, next day, you can choose which type of free delivery you want. And free delivery is a huge offer you can give some customers because not every company does that however with next day free Prime these days, buyers have become accustomed to this privilege and it is now an expectation.
And then the third option for Amazon promotions is bought one, get one and you can do buy one, get one free, buy one, get one-half price, buy one get one 25% off, whatever you might choose. But, that’s great for kind of bundling in certain products with another one that perhaps isn’t selling, quite so well. You can only get the percentage off, if you spend, if it’s on certain products, or you spend a certain amount. So that’s really good to convince people to convert a maybe an offer that they might not have done before, for example ‘if I do buy two, I get 30% off. Maybe that might sway me so it’s really good that you can put that kind of in place. So it’s not just one product 30% off, might have to buy two and then you can benefit from that way even though you’re selling your products on reduced price. This can be done if you have a product that sells really well and a product that sells maybe not so well. You can choose buy one, get one free deal on this or buy one get one half price deal on this. So on the for that you have to buy the one that’s selling really well as they sell really well anyway, and you get the other one that isn’t perhaps selling so well. 50% price because they weren’t selling so well anyway, but if with that 50% incentive, they might, you might be to sell a much larger volume of them and get them out the door.
This can be especially effective after expanding into a new marketplace if you stick on a 20% promotion. It can be a great way of getting a lot of products out the door quickly, gaining that sales velocity and increasing product search ranking whilst getting reviews. All things that will put you in good stead for after the promotion campaign has ended so that your organic sales will really benefit after the fact.
A lot of our clients had some real success with vouchers, leaving a lasting effect on the organic ranking of products due to the elevated sales volume leading to a higher organic sales velocity both during and after the promotion ended. I say during because some customers were buying the product without applying the voucher as well, because those points weren’t necessarily those people weren’t looking for a voucher or they didn’t think to look for one or simply didn’t even know about it.
some studies that suggest that a 30% discount or higher is enough to get somebody to buy who’s perhaps on the fence of whether they should, if they’re interested in or not.
But if you’ve got a brand new product, the chances you need to get some sort of momentum behind that. So you might want to use vouchers and promotions to aid you to do that and also help immediately bolster the product’s organic ranking and sales as a result.