Q. Can Promotion Balance and Amazon Points be used together?

A. Yes, basically they can be used together. After promotion balance is automatically applied at payment screen, you can choose whether to use points for remaining payment.

Q. Will Promotion Balance return if I cancel order?

A. It depends on reason for cancellation and terms of campaign, but it is generally returned if within expiration date. However, it expires if date has passed.

[Must-See for Beginners] What is Amazon Promotion Balance? Check Methods and Impact on UX New EC Managers Should Know

In shopping on Amazon and EC operation, the mechanism of "discount" cannot be avoided. Especially what beginners tend to confuse is the difference between "Amazon Gift Card Balance" and "Amazon Promotion Balance". Promotion balance is a so-called "use-limited discount frame" granted by applying specific campaigns or coupons. In this article, we explain the definition, confirmation method of promotion balance, and impact on UX (Customer Experience), which are essential for new EC managers to plan customer response and marketing measures, from a professional perspective.

Table of Contents (Click to Expand)

1. What is Amazon Promotion Balance? Decisive Difference from Gift Card
2. Confirmation Method of Promotion Balance and Trap of Expiration Date
3. Impact on UX: Incentive Design Influencing CVR
4. Effectiveness of Discount Measures Seen in Data
5. Summary

1. What is Amazon Promotion Balance? Decisive Difference from Gift Card

Amazon Promotion Balance refers to "automatically applied discount frame" granted to user's account through specific campaigns conducted by Amazon (e.g. purchase of eligible products, Amazon Gift Card charge campaign, delivery option change benefits, etc.).

The biggest feature is that it is not "charged and saved" like gift card balance, but "automatically deducted at payment screen when specific conditions are met". Also, in many cases, expiration date is set, and it has "ephemeral (temporary)" nature that disappears when date passes. EC managers need to understand the scope of "which category this balance is applicable to".

2. Confirmation Method of Promotion Balance and Trap of Expiration Date

When receiving inquiry from user saying "cannot find benefits that should have been granted", it is important to be able to guide the confirmation place of promotion balance. Actually, promotion balance is not displayed on "Gift Card Balance" page.

Check Procedure: Put product in cart and proceed to register (payment) screen.
Display Location: Displayed as "Promotion" in "Payment Method" section or "Discount" item before order confirmation.

Also, there are cases where it can only be confirmed from specific URL (campaign detail page), which is a point where "friction" impairing user convenience is easy to occur. EC managers must thoroughly design lead line of "where to check" when launching measures.

3. Impact on UX: Incentive Design Influencing CVR

Promotion balance plays a role more than simple discount. Especially by combining with "free shipping with a few more yen" or "bulk buying campaign", it contributes to improvement of Average Order Value (AOV).

From psychological perspective, "Endowment Effect" works. Users feel they "do not want to lose" promotion balance they already have, so purchasing motivation rises sharply when expiration date approaches. Incorporating this into UX design leads to prevention of Abandoned Cart.

4. Effectiveness of Discount Measures Seen in Data

The following chart conceptualizes what impact the presence/absence of promotion (discount balance) has on CVR (Conversion Rate) in general EC sites.

As data shows, appropriate incentive design has potential to raise CVR by about 2 times. However, since overuse leads to brand damage, segmented delivery is the key.

FAQ

Q. Can Promotion Balance and Amazon Points be used together?: A. Yes, basically they can be used together. After promotion balance is automatically applied at payment screen, you can choose whether to use points for remaining payment.
Q. Will Promotion Balance return if I cancel order?: A. It depends on reason for cancellation and terms of campaign, but it is generally returned if within expiration date. However, it expires if date has passed.