By Martin Heubel, Amazon Strategy Consultant at Consulterce
Deals are an effective lever to grow revenue on Amazon. But the required funding can quickly drain the profit margins of participating brands.
So should you even run price promotions this year?
Here’s my take:
Vendors with severe margin pressure should:
- Avoid costly price promotions like Top Deals
- Instead, run SnS promotions to retain customers
- Divert the promotional focus to slow-moving items
- Shift investments to Amazon Advertising
So yes, driving a profitable portfolio mix will become the new benchmark for brands in 2024.
TDLR;
- High margin & low price elasticity: avoid discounts
- High margin & high price elasticity: ideal for deals
- Low margin & low price elasticity: discount only if overstock or EOL
- Low margin & high price elasticity: discount to activate listings
For further information and support, contact Martin Heubel here
