How Do Amazon Coupons Work and How to Add One as a Seller
Looking to grow sales, attract more clicks, or boost visibility during high-traffic events like Prime Day? Amazon coupons might be your secret weapon. In this guide, we’ll break down how Amazon coupons work - for both sellers and buyers - and why they’re a smart strategy for any FBA business.
You’ll learn how to add a coupon on Amazon, how to create a compelling promo code or limited-time offer, and the best practices to make your discounts stand out in crowded listings. Let’s dive in.
Table of contents
How do Amazon Coupons Work?
Amazon coupons are a powerful tool that benefits both sides of the marketplace. Buyers get instant savings, while sellers get a flexible way to promote their products and drive conversions.
For Buyers:
Visible and clickable: Coupons appear as green “Save” tags right on the product listing, making deals easy to spot during search.
Effortless to redeem: Shoppers simply click to “clip” the coupon, so there is no need to enter a promo code or hunt for a discount.
Applied at checkout: The savings, whether a dollar amount or percentage, are automatically applied at checkout.
Added incentives: Some coupons include perks like free shipping, limited-time offers, or exclusivity for Prime members.
For Sellers:
Increased product visibility: Coupons help your listings stand out in crowded categories and during major shopping events like Prime Day.
Higher click-through and conversion rates: That small green tag can make a big impact on buyer behavior.
Customizable promotions: Inside Seller Central, sellers can choose the discount type, set start and end dates, and even target specific shopper groups.
Multi-channel promotion: Coupons can be used across social media, email campaigns, and sponsored ads to drive external traffic to your Amazon listing.
Performance insights: Built-in reporting tools help track how coupons influence sales, making them a smart part of your long-term growth strategy.
Real profits: Sellers and manufacturers alike use coupons to sell products more effectively and turn promotions into real money.
In short, Amazon coupons are more than just a discount. They're a strategic way to promote products, move FBA inventory, and compete more effectively without eroding your margins.
How to Create a Coupon on Amazon?
Setting up a coupon on Amazon is quick, but knowing how to price it correctly is key to running a successful promotion without cutting too deep into your margins. Here’s a step-by-step guide on how to add a coupon on Amazon:
1. Go to Seller Central and log in to your account.
2. Navigate to the Advertising tab and select Coupons.
3. Click “Create a new coupon.”
4. Choose products you'd like to promote. This can be individual SKUs or a group of listings.
5. Select a discount type (either a dollar amount or percentage off).
6. Set your budget, duration, and target audience (like all buyers or just Prime members).
7. Add optional messaging to highlight your offer, limited-time deal, or special discount.
8. Review and submit your coupon for Amazon approval (usually takes a few hours).
Check Profitability with AMZScout PRO AI Extension
Before you launch your coupon, make sure you’re not hurting your profitability. The AMZScout PRO AI Extension offers a built-in Profit Calculator that helps you test your coupon strategy before going live.
How to Use It:
Install the AMZScout PRO AI Extension (available for Chrome).
![Install AMZScout PRO AI]( "Install AMZScout PRO AI")
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Head to Amazon.com and search for your product or a competing listing.
Click the “Explore Product Data” button that appears on the product page.
Click the Profit Calculator button on the next page under the product.
![AMZScout PRO AI Profit Calculator]( "AMZScout PRO AI Profit Calculator")
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Enter your product price (including the discount from your coupon).
Get the estimates. The tool will automatically calculate:
Profit per Unit
Net Margin (%)
Estimated Monthly Profit
This helps ensure your coupon won’t drop your promo price too low or make your shipping and FBA fees eat into your revenue. It’s a great way to balance being competitive while still growing sales and protecting your bottom line.
Best Practices for Running Coupons on Amazon
Running a coupon might seem simple, but doing it strategically is what separates average sellers from top performers. Here are a few best practices to make sure your next promotion drives results, not regrets.
Find the Sweet Spot on Pricing
Set a discount that’s just right. Too small, and buyers won’t feel compelled to act; too steep, and you risk cutting too far into your profits. A 5–20% range is often ideal, but the real key is understanding your product margins. Before setting anything live, use the Profit Calculator to test different promo prices and make sure your net margin and profit per unit stay healthy.
Pair Coupons with Targeted PPC Ads
A coupon alone may catch the eye, but pairing it with Amazon PPC ads can supercharge visibility. Run ads for your discounted products using keywords that convert. Not sure which ones to target? The AMZScout Keyword Search tool can help you uncover high-intent keywords with solid search volume, so your ad spend actually moves the needle. This combo is especially effective when launching a new listing or trying to boost rank on page one.
Use Coupons During Big Sales Events
Coupons shine brightest during high-traffic events like Prime Day, Cyber Monday, or back-to-school season. These are the moments when buyers are already looking for deals; your offer just needs to seal the deal. Plan ahead and create your coupons in advance to ensure they’re live when shoppers are most active.
Promote Outside of Amazon
Don’t keep your offer a secret - share it! Promote your coupons through social media, email newsletters, and influencer partnerships. Amazon lets you create custom coupon URLs, making it easy to send shoppers straight to your listing with the discount already applied. It’s a great way to drive external traffic and expand your brand visibility beyond the marketplace.
Make Sure the Listing Supports the Offer
Finally, a coupon won’t fix a weak product page. Make sure your listing is optimized with strong copy, high-quality images, A+ Content, and plenty of reviews. When buyers land on your page, they need to feel confident that they’re getting both a deal and a quality product. It’s the full package that turns clicks into conversions.
FAQs
Is there a catch to the Amazon coupons?
Not exactly a catch, but they’re not free. Amazon charges a $0.60 fee each time someone clips your coupon, and you also pay for the discount amount. So if you offer $3 off and 100 people use it, that’s $360 in total cost. It’s smart to use a profit calculator to make sure the offer still supports your bottom line.
How much do Amazon coupons cost sellers?
Sellers pay two costs for each coupon: a $0.60 fee per redemption, plus the discount amount they choose to offer.
So if 200 buyers use a $2 coupon, that’s $400 in discounts and $120 in fees - $520 total. Always double-check with tools like AMZScout’s Profit Calculator before you launch.
What’s the difference between coupons and deals on Amazon?
The main difference is control: coupons give you full control, while deals offer high visibility but less flexibility. With coupons, you choose the discount, timing, and audience; they show up as green tags and pair well with PPC and social media. Deals (like Lightning Deals) need approval, cost more, and usually require steeper discounts. Use coupons for long-term strategy and deals for quick traffic boosts.
Final Thoughts
Amazon coupons are not just a discount, but a smart, flexible way to increase visibility, boost conversions, and drive real business growth. When used with a solid pricing strategy and supported by tools like AMZScout, coupons can become a key part of your overall sales and promotion plan.
Whether you're preparing for a big event like Prime Day or simply looking to gain an edge in your niche, the right coupon strategy can make your listing stand out and your profits add up.
