Amazon Vouchers - Confused about charges


#1

We recently set up a small voucher campaign so that we could try and figure out the costs but it’s only left us just as confused as before.

We sell the item at £13.99
We set up a voucher for 10% off
The charges for the voucher are displayed as £1.40 per sale (vouchers don’t have a cost per-click)
It SEEMS like we’re getting £1.40 less for the sale AND being charged £1.40 by Amazon (the £0.45 charge per voucher is free due to a special offer until July 1st).
However the £1.40 charge doesn’t seem to show up on our transaction statement yet, while the £1.40 reduction in sale price does.

Is this reduction actually the “charge” or are we really getting £2.80 less for each sale?


#2

I think this is how vouchers work but it’s all smoke and mirrors by Amazon in order to grab a bit more of your profit.

I’ve tried to work through it a number of times and it does seem very expensive for sellers to use.

So you sell an item for £10.00 and want to offer a 10% voucher.

The voucher cost that Amazon will charge you is £1.00
The voucher will discount the product another £1.00

This means you are selling at £8.00 and on top of that you pay normal commission and FBA fees to Amazon and eventually and additional 40p in fees for vouchers.

It’s all smoke and mirrors to grab your profit. You either absorb it or put up your prices to pay for the cost of running vouchers.


#3

So that’s a double hit and a 10% discount becomes almost 20% in reality?
[I say almost because the fees on the lower selling price will be less than they would be at the higher price]


#4

This sounds crazy to me. I’m glad I never considered using vouchers.


#5

It’s very expensive and much much cheaper to use promotions,.

But if people start to use vouchers how long will promotions last?


#6

It suppose it’s one way to stop fake savings.

If you price something at £100 and offer a 75% off voucher because the item is only worth £20 anyway you’re gong to be paying Amazon £75 for the pleasure of offering a £75 off voucher.


#7

Yep, lol.

Either way, my last comment still stands (if you swap “promotions” for “sponsored products”).
With promotional codes, once you’ve generated a code you still need to distribute it in some way.

edit: ugh the forum glitch out and posted my comment as an edit instead of a reply…


#8

no, there;s no charge to using promotions such as buy 1 get one free or get free postage.

I think you’re confusing promotions with sponsored products.


#9

Thought so . Not to clued up on this vouchers thing . Just wondering why would a seller buy vouchers when to promote an item the promotions option can simply be used which generates a promotion code . Nothing to pay there .

Cost per Click is a totally different story .


#10

Promotions don’t advertise your product, you need to actually distribute the promotional codes yourself.
Vouchers put you on the (new) Vouchers page, where a customer can easily browse without searching for anything specific.


#11

It’s an awful lot of money to pay just to get put on a page that promotes vouchers. If you want vouchers to work for you then you need to pay for off site promotion of that voucher code as well as the cost of the voucher itself.

Personally I’d stick with using the free promotion feature (while it last) and posting those codes on facebook voucher pages for free to generate sales.


#12

My guess is that Amazon will highly promote vouchers as a way to generate sales. They already have webinars to show you how to combine using Sponsored Products with Vouchers to generate sales.

Then slowly the promotions feature will get relegated and eventually killed off. That will then force everyone onto the paid for vouchers option.


#13

How are you getting such a big cost? The voucher cost is your discount amount + .45 cents?


#14

I’ve just received a reply from seller support regarding the prices for the Voucher advertising.
The reason for the badly worded help pages is because of the way amazon classify “costs” related to this type of advertising.
If you advertise with a £100 budget, offering a £1-off voucher, each time you get a sale £1.45 is deducted from your budget and you are charged £0.45, you receive £1 less for the sale, but the Amazon fees are also reduced to match the new selling price.
So overall you lose approx £1.30, we’ve been running several voucher campaigns on the presumption that we were charged £1.45 plus we got £1 less from the sale, and even with these imaginary figures we’ve had an extremely good cost-to-profit ratio.


#15

Thanks for your detailed reply. I tend to agree its a cost of doing business work it in and focus on selling not counting pennies here and there. Good luck guys here’s to a great week!


#16

Sorry to join your conversation. So to be clear if I make 1£ voucher I will paid for each sale 1£ (+ the charge like 0.45£) plus I will get 1£ for each sale. In total every sale will cost me 2.45£. Is it correct?
Thank you very much!


#17

No, You get charged the £0.45 and you get £1 less from the sale price.
Since the selling price is £1 less you also pay £1 worth of selling fee less than normal, so you save approx £0.15 (depending on the fee for that product category).

Total cost to yourself would be approx £1.30.


#18

Fantastic! Thank you very much!


closed #19

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