Understanding promotional rebates
When I run a promotion, the revenue received is the reduced price (i.e. the price with the discount to the end consumer included). Why does Amazon then charge a Promotion rebate to reduce the amount even further?
Thanks in advance
5 replies
Ezra_Amazon
Hi @Seller_K551hPoQKL76Y,
Amazon charges a Promotion rebate because when you offer a discounted or promotional price to customers, that discount is directly passed on to them.
However, Amazon still expects to receive their standard referral fee based on the original, non-discounted price of the item before any promotions were applied.
For more details, you can check out Referral fees for orders with promotions.
In simple terms, while the promotional price reduces the amount you receive from the customer, the Promotion rebate ensures that Amazon still gets their share of the referral fee calculated from the original, non-discounted price.
Please let me know if this explanation makes sense or if you have any further questions!
Best regards, Ezra
Ezra_Amazon
You're most welcome @Seller_K551hPoQKL76Y!
Feel free to reach out if you have any other questions. Cheers, Ezra!
Seller_9e3EraxNcT2pW
Dear Ezra,
Can you please explain this further since I was not clear? I will ask this with a sample:
Product original price is £10.
Promo Rebate is Buy 2 Get 10%.
Product Category is DIY and let’s say standard Amazon Referral Fee is %13.
Can you please let me know how much Amazon will charge me in this instance and what it will be called? The fee Amazon will charge be called “Amazon Fees” or “Promo Rebates”?
“In this instance, I assume the fee will be %13% of £10 which is £1.3 and this will it be called Amazon Fees?
How you calculate the promo rebates? Do we pay £1.3 plus the promo rebates at the top?
Please provide the information with the calculation so we all can understand.
Many thanks,
London White
Ezra_Amazon
Hello @Seller_9e3EraxNcT2pW,
Thanks for reaching out. For the most accurate answer to your question, I'd recommend contacting Seller Support directly.
If you could provide them with some specific order examples, they'll be able to calculate this precisely for you.
Best regards, Ezra
