[Beginner EC Manager Must-Know] What is "Amazon Promotion Code"? Setting Manual to Maximize CVR

In order to increase sales of own products on Amazon, utilization of "promotion" is important along with ad operation. Especially, "Amazon Promotion Code" which can provide discounts narrowing down to specific targets and media has the potential to dramatically improve CVR (Conversion Rate). In this article, what "Amazon Promotion Code" is from the basics, concrete setting methods, and strategic utilization techniques to maximize sales are explained thoroughly.

Table of Contents (Click to Expand)

1. Basic Concept of Amazon Promotion Code
2. Types of Promotion Codes (Single Use vs Group)
3. Setting Procedure Manual in Seller Central
4. Effect of Promotion Introduction Seen in Data
5. 3 Operational Strategies to Maximize CVR

1. Basic Concept of Amazon Promotion Code

what 'Amazon Promotion Code' is, is an alphanumeric code that Amazon sellers can issue, allowing buyers to apply a discount by entering it at the checkout screen. Unlike regular 'coupons' that are visible to everyone on the product detail page, promotion codesthey can be distributed limitedly only to "specific customers" or "external SNS followers" .

This enables flexible marketing measures according to purposes, such as preferential treatment for existing customers of the brand, measurement of external inflow through influencers, and inventory clearance sales.

2. Types of Promotion Codes (Single Use vs Group)

In Amazon, two major code formats can be selected according to usage.

Single Use: Can be used only once per code. Suitable for compensation to individual customers or when setting a very high discount rate.
Group: The same code can be used repeatedly by multiple users. Ideal for diffusion on SNS or posting on flyers.

3. Setting Procedure Manual in Seller Central

Setting is done from "Promotion" in the "Advertising" tab of Seller Central. Proceed with the following steps.

Select "Money Off" or "Buy One Get One".
Specify target products (ASIN list).
Set discount rate, start date, and end date.
Select "Group" or "Single Use" in the "Promotion Code" section and generate the code.

As a precaution when setting, plan the schedule keeping in mind that it takes at least 4 hours from setting completion until the promotion becomes effective.

4. Effect of Promotion Introduction Seen in Data

The following graph simulates the transition of CVR (Conversion Rate) before and after introducing promotion codes. It can be seen that appropriate discount design can boost the layer with low purchasing desire with "reason to buy now".

5. 3 Operational Strategies to Maximize CVR

Just issuing a code is not enough. By combining the following strategies, Return On Advertising Spend (ROAS) can be maximized.

(1) Linkage with Influencer Marketing: Issue a code exclusive to a specific influencer and accurately track sales via that code.

(2) Repeat Promotion via Thanks Mail: Distribute "Next Time 10% OFF Code" in follow-up mail after product purchase to increase LTV (Customer Lifetime Value).

(3) Utilization as Landing Destination for External Ads (Google/Meta): Promote immediate purchase by presenting a code with a sense of limitation to inflow from outside Amazon.

FAQ

Q. Is it possible to use promotion codes and coupons together?: A. Yes, it is possible depending on the setting. However, it is necessary to carefully check the "Exclusive" setting etc. at the time of setting so that discounts do not overlap too much and squeeze profits.
Q. I am worried that the code will be arbitrarily spread on SNS and stock will run out.: A. Unexpected losses can be prevented by using single-use codes or setting a maximum discount budget (budget management function) for the entire promotion.