Amazon Throws a New "Cost Bomb" in 2025!

Amazon has introduced a new promotion and coupon policy. Compared with the previous rules, this change has significant adjustments in terms of promotion duration, cost structure, and activity threshold.

Small craftsmen's summary is: Although the promotion time is more flexible, the more promotions, the higher the cost; the cost of coupons seems to decrease, but the cost of high-ticket products increases indefinitely.

Let's look at the specific details:

Image source: Amazon

1. Promotion duration becomes more flexible: Starting from June 2, 2025, you can launch Z-deals on any day of the week, with a promotion duration of 1 to 14 days. In this way, you can adjust the promotion date and duration according to the buyer's consumption trend and business objectives. However, for peak season events (Prime Day, Prime Big Sale, Black Friday, and Cyber Monday), the promotion date and duration are still fixed.

2. Promotion and special offer costs will be linked to performance: We will link costs to performance, making it easier for you to attract more buyers through promotions and special offers. We will reduce the prepaid cost of promotions and use variable costs based on sales volume, making it easier for you to try various promotional and special offer strategies. Promotions with weaker display effects will be charged lower fees, while more eye-catching display positions will be charged higher fees.

3. Big changes in promotion and coupon costs: Deals and Lightning Deals can be displayed in high-exposure promotional positions, including on the promotion page, search results, and detail pages. The prepaid cost of launching these promotions will change from $300/$150 per promotion to $70 per day plus a variable cost (1.0% of the promotional sales amount, with a maximum variable cost of $2,000 per promotion).

Coupon costs will change from $0.60 per sold item to a prepaid cost of $5 per coupon plus 2.5% of the coupon sales amount. For most products sold in our mall, this change will reduce the coupon cost per sold item.

Interpretation: First is the change in Lightning Deal time. Sellers have more choices and can start within any day of the week, with a free choice of duration from 1 to 14 days, making Lightning Deal time more flexible.

But the cost has gone up a lot!

BD/LD original event cost: $300/$150, changed to $70 per day + 1% of the sales generated by the event (variable transaction fee cap of $2,000) from June 2, with a cost range of $2070 to $2980 for a 1-14 day BD/LD event.

For example, the original LD (8 hours a day) only needed to pay $150, but from June 2, if the daily sales reach $8000, the cost = $70 + $8000 * 1% = $150, which is already flat with the original LD. If the sales exceed $8000, the promotion fee paid by the seller will be higher than before. In other words, the more sales, the more promotion fees you pay.

Coupon cost change: From $0.6 per product to a prepaid cost of $5 per coupon plus 2.5% of the coupon sales amount.

For example, if your average order value is $23.99 and you have claimed 800 items, the new cost is $5 + (800 * $23.99 * 0.025) = $484.8, while the previous cost was $800 * $0.6 = $480.

In summary, when the average order value is less than $24, compared to the original $0.60 per item, the advantage is obvious, it might just be an extra fixed cost of $5; but for high-ticket products, it will bring an increase in costs. For example, for a $50 product, 50 * 2.5% = $1.25, which is already more than double the previous cost, high-priced products face greater cost challenges.

4. Prime Day offers more shopping days: The 2025 Prime Day event will be a longer and larger event, and we expect to attract more buyers than ever before. To support this growing event, we will charge the following promotional fees in the Amazon US mall during the 2025 Prime Day period:

The cost of each Prime exclusive discount will change from $50 to $100.

Starting from 2024, Z-deals and Lightning Deals will remain unchanged, with fixed costs of $1,000 and $500 respectively.

Interpretation: This one is quite straightforward, directly raising the cost of Prime exclusive discounts, which undoubtedly increases the cost pressure on sellers who frequently report member discount activities.

Overall, for low-ticket products, coupons are cheaper, for high-ticket products, coupons are more expensive; the more sales, the more promotion fees you pay to Amazon. It means that high-ticket and top-link reported events have higher costs than before, and will face higher cost challenges.

What do Amazon sellers think of the new policy?