In this article, we discuss how do Amazon lightning Deals work and their advantages and disadvantages if you’re an Amazon Seller.
Read below on how Amazon lightning deals can increase your success on Amazon.
What is Amazon Lightning Deal?
If you’ve been selling on Amazon for some time, you’re probably familiar with Amazon Lightning Deals.
A lightning deal on Amazon is an offer that will only be available for a limited time period. Amazon usually requires you to offer a discount of at least 15% or more. The offer usually runs for 4-12 hours on the Amazon Deals page and is limited to one per customer only.
During Amazon Prime Day, these offers are exclusive to Prime members.
Lightning Deals are a great way to highlight your products and attract new customers.
Eligibility requirements to create a Lightning Deal on Amazon
Before you create a deal, ensure that your product is eligible for this offer; here are the requirements to be eligible for deals:
You must have a professional seller with at least five seller Feedback Ratings per month
You must have an overall rating of at least 3.5-stars.
Additionally, you must meet these product criteria:
Have a sales history in Amazon stores and at least a 3-star rating.
Include as many variations as possible.
Not be a restricted product or offensive, embarrassing or inappropriate product.
Be Prime eligible in all regions.
Be in new condition.
Be compliant with customer product review policies.
Be compliant with pricing policies and have a valid reference price.
Be compliant with deal frequency policies.
How to create an Amazon Lightning Deal
Lightning Deals are a feature of Amazon that gives you the opportunity to offer customers a limited-time discount on your product. You can create these deals through a few simple steps:
- In the Deals dashboard under Advertising, click Create a new deal.
- Select an eligible product in your inventory
- Select date range and click Continue to next step.
- Enter Deal price or Discount per unit and Minimum deal quantity.
- Click Continue to next step.
Click Submit Deal.
Advantages and Disadvantages
It can be used to drive sales in a number of ways:
- Increase sales by offering discounts on products in high demand.
- Increase ranking by offering exclusive deals on products that have low demand.
- It’s also a great way to build a loyal following because they will want to buy from you again when they see what a great deal they got!
- Can help increase sessions without spending more on PPC.
- Can improve your CTR (Clickthrough Rate). When you have a discount it gets highlighted beside your title. Customers are more likely to click on product pages with a discount.
- Can reduce inventory faster
- Increase product visibility
- Generates legitimate reviews
While Amazon lightning deals could help increase traffics to your product, it has some drawbacks:
- Could eat up your profit margin if you don’t have enough budget. Amazon also requires you to pay a lightning deal fee starting from $150.
- Not all products are eligible for deals.
- If you are fulfilling orders on your own, you may find it hard when there’s a spike in sales. This could affect your seller ratings.
- Though you can propose the time range, you have no control over the running time of the lightning deal that will go live. Amazon will have an influence on the exact date and time for running the deals. It means, that if they decided to show the deal after midnight, it will have low traffics to your products,
Lightning Deals and Other Promotions
Lightning Deals vs Deal of the Day
The difference between Today’s Deals and Lightning Deals is that the former runs for the entire day, while the latter runs for a couple of hours.
While both offer sales prices, they significantly differ in time frames.
To keep it simple, with Lightning deals, customers have 15 minutes to process the order or they will miss the offer making this more effective in creating a sense of urgency from customers.
Lightning Deals vs Best Deal
If you like the idea of Lightning deals but looking for a longer promotional discount, Best Deal offers discounts that can run up to two weeks and are available for vendors.
Best deals can be accessed in the Vendor Central and just like with the Lightning Deals, it will be featured on the Amazon Deals page
Lightning Deals vs Coupons
Coupons are another Amazon promotion that can run up to 90 days, unlike time-sensitive Lightning Deals. In addition, you can offer coupon price discounts or a percentage discount off the product.
Coupons and lightning deals get featured in the deals section on Amazon and both are best ways to increase sessions without spending more on PPC.
Preparation for lightning Deals Promotion
- Enough Inventory. Ensure you have your stock ready if you want to run Lightning deals. You don’t want to end up with depleted stock in spikes of sales.
- High-Quality Image. Customers are visual creatures. They mostly check your photos first before reading anything else in your listing.
- Informative Copywriting. Customers need just the right amount of information about what’s important to them.
- Right Keywords. Make sure you have incorporated the right keywords in your Title, Bullets, and Product Description.
What are the best products to promote?
If you’re looking to promote your products in Lightning Deals Promotion, I recommend promoting your top-selling products or Bestsellers.
These are products that are already ranking and are selling well, so they’ll be easier to get exposure for.
Are Amazon Lightning Deals Worth It?
The Amazon Lightning Deals program is a great way to boost your sales and improve organic rankings on Amazon.
It improves organic rankings because it spikes the conversion rate and the number of units sold, which are two important factors for ranking.
But there are some things you need to keep in mind before you decide to run a lightning deal.
It’s important to make sure that the product you are selling is suitable for lightning deals and that it will be worth the investment because it really does cost a lot of money.
While Lightning Deals are an excellent strategy for sellers who are looking for ways to boost sales and brand visibility, they can also be costly mistakes for those who don’t use them properly.
Some businesses use this strategy as an opportunity to attract new customers—and that’s not always a bad thing! But if you don’t know where to draw the line between getting more sales and losing money, it can be hard to tell when your Lightning Deal is too good for you.
So be strategic in using Lightning deals as well as other Amazon promotional offers.
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