In this article, you’ll learn how to run a sale on Amazon and other marketplaces, why it’s important to limit your customers, and at what points in the product lifecycle promotions will be most effective.
People love discounts
It is an indisputable fact that customers are more loyal to a brand if they have managed to “snatch” something at a good price from its products. However, if a brand offers discounts almost every week, then such a purchase is not perceived as a “successful deal” but rather, on the contrary, causes a feeling of deception.
Frequent sales have a negative impact on the company’s image, and the product is perceived as something not very valuable. In addition, if customers see discounted products all the time, they may start to expect discounts and postpone purchases until the products are presented at a lower price. And this situation has an extremely negative impact on margins.
There is also the following point: regular customers who buy products at full price may feel “offended” if they see the same products being sold to other customers at a discount.
In other words, sales should be timely, limited, and well-thought-out. So before you make discounts on Amazon/Etsy/Shopify, answer the question: “Is it really appropriate now?”
When to hold promotions and sales
The first thing that comes to mind is holidays. However, there are many other reasons to please your regular and potential customers:
- Launching new products on the market (to draw attention to the store and encourage people to familiarize themselves with new offers);
- change of seasons (to free up warehouse space and get rid of irrelevant items);
- inventory of stocks;
- “quiet” periods typical for your niche.
There are also personalized strategies when sending a promo code or coupon can be a decisive factor in making a purchase. For example:
- as a birthday or name day greeting;
- as a reminder of an “abandoned cart”
- as an incentive to buy recently viewed products;
- as a cross-selling tool, etc.
The timing of sales depends on the specifics of your business, your products, and the strategy you choose. If you plan the promotion correctly, you get a powerful tool to increase sales, attract customers, or free up warehouse space for new products.
How to run promotions on Amazon and Etsy: the technical side of the issue
Like all other operations, you can set up a sale through Seller Central. However, before moving on to the technical side of the issue, it is important to understand what types of promotions exist on the platform. Usually, there are three of them:
- Promotions – discounts in % or in cash equivalent for all or selected products of the store.
- Coupons – coupons (promotional codes) that are activated during the ordering process;
- Shipping Discounts – offers with discounts on delivery and/or faster delivery.
With these features in mind, all you have to do is choose the type of promotion you want in the Advertising section, set goals (from the ones offered by Amazon), set a budget, and start the campaign.
The advertising tools offered by the platform – Sponsored Products, Sponsored Brands, or Display Ads – will help you make it successful.
The steps on Etsy will be the same: go to the control panel → look for the Marketing tab → Sale.
Three rules for successful sales
So, we’ve figured out why and when to organize sales on Amazon, Etsy, and Shopify. Now, let’s give you some tips on how to run a successful promotion.
First: create restrictions. The client should feel that your offer is profitable and unique, and it is better to hurry up to get the product at a good price. To do this, the promotion must have specific deadlines (preferably no more than 2 weeks). You can also create a restriction in the form of an artificial shortage (there are XXX units left in the warehouse) or create an artificial hype (a counter for how many people bought this item in the past day).
Secondly, explain the reason for the discounts. Black Friday promotion, final sale of the year, coupons for participation in a contest, promo codes for a friend, etc. Discounts without justification cause distrust, and customers may think that the brand is selling illiquid goods, getting rid of low-quality products, or generally not being valuable.
Third, work on the attractiveness of the offer. It seems like a very simple point, but many sellers are sincerely surprised why they don’t have a crowd of customers if they offer minus 5% on a $1 item. If you don’t have the ability to move the price, use other ways to increase the benefits of the offer: a promo code for future purchases/gift for each order, etc.
Successful sales require a strategic approach, effective advertising, and analysis of the results. The key is to have a clear goal and a plan that will increase sales, customer satisfaction, and grow your business.