|Sun Aug 18 2013 15:12:04|
How Effective Are Discount, BOGO and Other Promotions?
By: Julia Wilkinson
Amazon recently announced that sellers in many media categories would be able to create several new types of promotions: namely, "Money Off, Buy One Get One and External Benefits." (External benefits are things like loyalty points, etc.). I have created two new promotions on my Amazon pro seller account, and extended them to my entire catalog; one for a $10 off over $50 order and another for free shipping. This got me thinking about not only how effective these types of promotions for sellers, but whether the online marketplaces are doing all they can to show these promotions to buyers.
I'd like to hear from you about the different kinds of promotions you've run and how well they worked for you. Meantime, the new Amazon promotions have led to some confusion among sellers as to when buyers will see the promotion details; on the main product listing page, or on the page under "condition" type listing all the various sellers of that item? Or only when the buyer gets so far as checkout?
The answer for the product detail page seems to be that, Amazon says, "We display your promotion on the product detail page only when your offer wins the Buy Box." And even if you do not win the buy box, at least for the listings I checked, my promotion was at least shown under my seller name in the list of various sellers of a product's specific condition type. For example, when a shopper clicks on the "Used" tab for a book I'm selling, they will see my price and "free shipping" offer listed along with the offer of the one other seller of this used book.
However, some sellers in the Amazon community thought that customers would only see the offer when they "stumble upon it on the final checkout page if their purchase qualifies for it" if you don't have the buy box. Buyers would be "oblivious to it prior to then," they wrote. And although I did see my offer on the list of sellers page, another seller said that a given promotion "may (emphasis mine) be displayed on the detailed offer page (the one that shows the list of sellers by condition type)."
I don't know why it only "may" be. What purpose would it serve not to show the offer at that point?
I also decided to check my "Markdown Manager" promo items on eBay. When you click into a specific listing for a blazer I am selling, a green "20% off" banner is visible across the upper left of the main photo. However, when the jacket comes up in the search results list, there is no such banner or anything to indicate that the item has been marked down 20%, which in this case on a $598 jacket adds up to a hefty $119.60 savings. Wouldn't it be nice if eBay could show these markdown banners when the item shows up in the search results and not just in the listing itself?
So, please share your stories of the promotions you've run and how well they've worked, or not. What can marketplaces to make promotions more effective? And will you try Amazon's new promotion types? Post a comment here!