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Mar 03, 2025 12:00AM

Amazon vendors should strategically approach price promotions in 2025. Vendors with tight margins should avoid costly deals, focus on customer retention through SnS or Coupons, and invest in advertising. A profitable portfolio mix is key for success.

Martin Heubel | Link to post

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:

๐—ฉ๐—ฒ๐—ป๐—ฑ๐—ผ๐—ฟ๐˜€ ๐˜„๐—ถ๐˜๐—ต ๐˜€๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐—ฒ ๐—บ๐—ฎ๐—ฟ๐—ด๐—ถ๐—ป ๐—ฝ๐—ฟ๐—ฒ๐˜€๐˜€๐˜‚๐—ฟ๐—ฒ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ:

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Œ
High margin & high price elasticity: ideal for deals ๐Ÿพ
Low margin & low price elasticity: discount only if overstock or EOLโœ‹
Low margin & high price elasticity: discount to activate listings ๐ŸŽฏ

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What's your take on price promotions this year?

Let me know in the comments!

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