Planning Promotions on Amazon

When planning promotions on Amazon, it is essential to carefully consider margin, inventory projections, and sales. One strategy is to create a master template that identifies products with sufficient margin room and inventory. Additionally, estimating the lift or increase in demand during promotional periods is crucial. It is common to use a tiered approach, where a 10% discount may result in a 2x lift, while a 20% discount could generate a 3x or 4x lift. It is important to prioritize being a 'Best Deal' to secure a spot on the highly-trafficked Deals page. Additionally, vendors should expect negotiations with Amazon regarding funding, as the company often requires vendors to provide 100% funding for promotions. Planning for a higher promotional budget than initially expected is recommended due to potential price fluctuations and additional audits throughout the process.