Prime Exclusive Discounts Update: Impact on Big Deal Days and Beyond

Prime Exclusive Discounts (PED) have been a powerful tool for sellers looking to increase visibility and drive conversions, especially during major sales events like Prime Day and Black Friday. But with Amazon’s new update, PEDs are evolving in a way that could have significant implications for both sellers and customers alike. Let’s take a closer look at what PEDs are, what the new update means for sellers, and how this change will impact events like Prime Big Deal Days and beyond.

What Are Prime Exclusive Discounts (PED)?

Prime Exclusive Discounts (PED) are special promotions that allow sellers to offer exclusive discounts to Amazon Prime members. These discounts help sellers connect with a more qualified and likely-to-convert customer base, increasing the visibility of their products during peak shopping periods like Prime Day, Prime Big Deal Days, and Black Friday/Cyber Monday.

To be eligible for PEDs, there are several criteria sellers must meet:

Minimum Discount: A discount of at least 10% (20% off during high-traffic events like Prime Day or Black Friday).
Eligibility: Products must have a rating of at least 3 stars and be Prime eligible for shipping.
Seller Feedback: A minimum of 3.5 stars or no rating.
Product Exclusions: Used, collectible, and refurbished items are excluded, along with restricted categories like firearms.
Pricing Rules: The product price must be lower than the lowest price it has been in the last 30 days and at least 5% lower than the reference price.

Until recently, PEDs have been free for sellers to use, offering a cost-effective way to boost conversions. However, this changes with the upcoming update.

What’s New in the August 2024 Update?

Amazon is introducing a $50 fee for PEDs during major sales events in the U.S., starting with the expected October Prime Big Deal Days. Here’s a breakdown of how the new fee will be applied:

New Event Fee: A $50 fee will now be charged for each PED during high-traffic events like Prime Day and Black Friday. This fee will apply to each product included in the promotion.
Sales-Dependent Fee: Sellers will only incur the $50 fee if the PED generates at least one sale during the event. If no sales occur, there will be no fee.
Non-Event Days: PEDs run on regular days (outside of event periods) will still be free of charge.

This change marks a significant shift from past years when PEDs were entirely free, even during major sales events.

PEDs vs. Coupons: Which is the Better Promotional Tool?

As sellers adjust to the new PED update, it’s important to evaluate the other promotional tools Amazon offers, particularly Coupons. Here’s how Coupons and PEDs compare, especially when you’re deciding on the best strategy for boosting conversions:

Coupons

Fee: $0.60 per redemption
Discount: Minimum 5% off
Eligibility: Available for both seller-fulfilled and FBA (Fulfilled by Amazon) products
Badge: Coupon badge displayed on the Coupons page
Best For: Increasing visibility and traffic, especially for listings that need more exposure

Prime Exclusive Discounts (PED)

Fee: Now $50 for event days (since August 2024)
Discount: Minimum 10% off
Eligibility: Must be Prime eligible and in new condition
Badge: Event deal badge during major sales events
Best For: Enhancing conversion rates for listings that already attract good traffic

During major sales events like Prime Day or Black Friday, both Coupons and PEDs require a minimum 20% discount to qualify for the event. However, PEDs provide a significant edge with their event-specific badges, which can lead to higher clicks and conversions.

What Does This Mean for Big Deal Days and Beyond?

With the $50 PED fee applying to high-traffic events, sellers will need to assess their product pricing, discount strategies, and the overall ROI of participating in these events. While PEDs have traditionally been a free and effective promotional tool, the new fee structure means sellers will have to weigh the cost against the potential benefit of increased visibility and conversions during major sales events.

For some sellers, the $50 fee could still offer value, particularly if their products are likely to perform well during high-traffic periods. However, for those with tight margins or less popular products, the new fee structure could prompt a reevaluation of their promotional strategy.

Conclusion

The August 2024 update to PEDs introduces new costs for participating in major sales events, but it also highlights the importance of thoughtful promotional planning. As sellers prepare for Big Deal Days, Prime Day, Black Friday, and beyond, they will need to decide whether PEDs, with their new $50 fee, or Coupons, which charge a fee per redemption, offer the best return on investment for their business.

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.