A Promotional Marketing Lesson from Amazon
Posted by Resource Nation on November 1, 2013 in Internet Marketing, Marketing [ 0 Comments ]
People often want whatever they don’t have. This cuts across many segments of life, but it’s hard to deny the attraction of a limited or exclusive item to consumers. And with e-commerce, purchasing channels have expanded to create an economy where almost everything is available, regardless of where you live. As a result, it’s getting harder and harder to be an exclusive provider of a product or service without raising prices or facing stiff competition from a growing number of businesses that have online platforms.
But there are alternatives. Nothing says exclusive like a “Gold Box,” and Amazon Marketplace sellers are relying on that idea to rake in greater revenue for some of their most sought-after items. Many businesses can take a page from this playbook by offering promotional items for a limited time, boosting sales and increasing consumer participation. More than that, it’s a lesson in product placement in an online environment.
How Does it Work?
According to Business Wire, this holiday season Amazon will give thousands of third-party sellers the chance to offer their items on the Gold Box Deal promotional page, as well as the Today’s Deal and holiday deal sites. Michael Silberstein, operations manager for New York-based electronics retailer Focus Camera, told WebProNews the company was able to sell nearly 30 percent of one of its most popular cameras in stock within a few hours of the promotion going live on Amazon’s site.
What are the Core Ingredients for this Type of Success?
- First, the company was able to offer its popular item “at an unbeatable price.” Silberstein commented the camera was priced at over $200, but the electronics company saw a dramatic increase in sales during the promotion.
- Second, the camera was prominently featured on Amazon’s website. The more exposure a brand or a product receives, the better the opportunity for sales.
- Third, the offer is limited. If a company offers the product or service perpetually at a discounted rate, there will be less motivation for them to buy. The deal will be there tomorrow and the day after that, so what’s the rush?
Especially as more customers are turning to the Web for better deals, businesses need to make sure they’re using this channel to its fullest capability. Exclusive, limited-time promotional items and sales are a strategic way to stay competitive in an increasingly tense e-commerce marketplace.