How to Create an Amazon Coupon or Promotion

Amazon coupon types explained

Amazon offers two main coupon types, and they work differently than most sellers expect:

Percentage-off coupons: "Save 15%" displayed as a green badge in search results. The discount applies at checkout. Works well for products over $20 where the percentage feels meaningful. Amazon requires a minimum 5% discount for the coupon to be approved.

Dollar-off coupons: "Save $5.00" displayed the same way. Better for lower-priced items where a dollar amount feels more tangible. The minimum discount varies but generally needs to be at least 5% of the list price.

Both types show the distinctive green coupon badge in search results, which is the primary benefit. That badge acts as a visual differentiator on a crowded search results page, drawing the eye and increasing your click-through rate by 15-25% according to most seller data.

What coupons actually cost

The total cost of a coupon has two components:

Your discount: The actual amount customers save. A 15% coupon on a $29.99 product = $4.50 per redemption.

Amazon's redemption fee: $0.60 per coupon redeemed. This is charged regardless of your discount amount.

So your true cost per coupon redemption = discount amount + $0.60. You only pay for coupons that are actually clipped and used. If a customer sees the coupon but doesn't clip it, you pay nothing. If they clip it but don't buy, you pay nothing. You're charged only on completed purchases with the coupon applied.

Budget wisely: set a maximum budget when creating your coupon. Once the budget is exhausted, the coupon deactivates. This prevents runaway costs on products that go viral.

When to use coupons vs. price drops

Use coupons when:

• Launching a new product (the green badge compensates for low review count)
• Responding to temporary competitive pressure (don't permanently lower margins for a competitor who might raise prices next month)
• Running seasonal promotions (Prime Day, BFCM, holidays)
• Testing price sensitivity before committing to a permanent change
• You want the CTR boost without permanently changing your price point

Use permanent price drops when:

• Your price is consistently higher than competitors with similar products
• You've identified that a lower price point drives enough additional volume to increase total profit
• You're repositioning the product in a new price tier

For a deeper analysis on competitive pricing strategy, see our guide on winning the Buy Box.

How to create a coupon in Seller Central

Navigate to Advertising → Coupons → Create a new coupon. Select your products (you can add multiple ASINs to a single coupon for "brand" coupons). Choose percentage or dollar-off, set your discount amount, configure your budget, select targeting (all customers vs. Prime members vs. specific audiences), and set start/end dates.

Pro tips for setup:

• Schedule coupons to start on a Monday. Weekend shoppers will see them for the full first week.
• Set budgets at 2x your expected redemptions. Running out of budget mid-promotion wastes the momentum.
• Use "one redemption per customer" to prevent abuse on high-value items.
• For Prime Day, submit coupons 3-4 weeks in advance to ensure approval.

Measuring coupon ROI

After your coupon ends, calculate the true ROI:

Coupon period revenue vs. same period before coupon (or same period last year for seasonal products). Account for the total coupon cost (discounts + fees). Factor in the BSR and ranking improvement, which continues generating returns after the coupon ends.

A well-executed coupon often pays for itself through the lasting ranking boost alone. If you sold 20 units/day before the coupon, 35 units/day during, and settle at 24 units/day after, those extra 4 units/day are the real return on your coupon investment.

Track your SKU-level profitability during and after coupon periods to get an accurate picture.

Other promotion types

Beyond coupons, Amazon offers several other promotion tools:

Lightning Deals: Time-limited offers on Amazon's Deals page. Higher visibility but higher cost ($150-500 fee). Best for Prime Day and BFCM. See our Lightning Deal guide.

Prime Exclusive Discounts: Price reductions visible only to Prime members. Shows a "Prime Discount" badge. No per-redemption fee, but requires at least a 10% discount and your price must be the lowest in the last 30 days.

Subscribe & Save: Recurring discounts for subscription orders. Great for consumable products. Builds predictable revenue. The discount comes from your margin but Amazon handles all the logistics.

Buy One Get One / Percentage Off promotions: Found under Advertising → Promotions. These don't show a badge in search results (unlike coupons), so their visibility impact is lower. Best for increasing average order value on complementary products.