Should hashtag#Amazon vendors focus on price promotions in 2025?
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:
๐ฉ๐ฒ๐ป๐ฑ๐ผ๐ฟ๐ ๐๐ถ๐๐ต ๐๐ฒ๐๐ฒ๐ฟ๐ฒ ๐บ๐ฎ๐ฟ๐ด๐ถ๐ป ๐ฝ๐ฟ๐ฒ๐๐๐๐ฟ๐ฒ ๐๐ต๐ผ๐๐น๐ฑ:
ยป Avoid costly price promotions like Top Deals
ยป Instead, run SnS or Coupon promotions to retain customers
ยป Divert the promotional focus to slow-moving items
ยป Shift investments to Amazon Advertising
Driving a -profitable- portfolio mix will become the new benchmark for brands in 2025.
TDLR;
High margin & low price elasticity: avoid discounts โ
High margin & high price elasticity: ideal for deals ๐พ
Low margin & low price elasticity: discount only if overstock or EOLโ
Low margin & high price elasticity: discount to activate listings ๐ฏ
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What's your take on price promotions this year?
Let me know in the comments!