Amazon Promotion Code Policy Update
Amazon has blessed us yet again with yet another policy change. There is some noted confusion from sellers based on the latest update to Amazon’s Policy regarding making new promotions and what these changes entail.
On November 9th Amazon removed the ability to make money off coupon codes . When we called seller support to find out more information the representative said, “Sellers were misappropriating free products in exchange for reviews”. This is yet again another attempt by Amazon to reduce a seller’s ability to use single use codes for incentivized promotion.
After some research, communication with amazon support, and the community, we have come up with some information.
Pro: Sellers are still able to create a % off discount code (up to 99% off current sale price) on their products.
Con: This type of code gives a percentage discount off of the entire cart which allows the buyer to order multiple units on discount.
During the time frame of your promotion you make a change in your inventory settings to limit the quantity of units per purchase to 1.
Pro: This will prevent any unplanned potential losses of inventory.
Con: Doing so also affects organic non promotional orders from being multiple units.
Watch your inventory VERY closely during the promotion’s activity and proactively cancel orders that aren’t viable to your promotion plan.
Pro: You catch all potential abuse orders
Con: Your seller account could be penalized for canceling an order and in the extreme worst case the buyer can leave negative feedback. It is likely, however, that Amazon would remove this feedback and suspend their account(s) in this situation based on potential intention of reselling. which is a violation of their TOS for buyers using promotion codes to gain product for resale. See More Here
We are testing and working on a third option that fixes this but will not be able to confirm the validity of it until tomorrow once we see the results.
TO BE CLEAR:
Amazon still approves of these kinds of promotion. They just want to force you the seller to use their services to do so. This controlled system has downsides that we feel still warrants the use of our services. See Details on TOS updates here
We work personally with dozens and dozens of amazing Amazon sellers everyday, helping them grow their brands and have optimized listings. While we understand this solution is not ideal we must face Amazon’s TOS updates and adapt as fast as we can as sellers. The new changes do make it more difficult to promote with Amazon in traditional methods however our solutions are viable and there are still other methods to grow your brand.
Please feel free to leave any comments or questions below