{"id":26881,"date":"2023-07-24T11:17:18","date_gmt":"2023-07-24T19:17:18","guid":{"rendered":"https:\/\/www.intentwise.com\/blog\/?p=26881"},"modified":"2024-02-06T04:57:26","modified_gmt":"2024-02-06T12:57:26","slug":"a-data-driven-approach-to-choosing-lightning-deals-on-amazon","status":"publish","type":"post","link":"https:\/\/www.intentwise.com\/blog\/tips\/a-data-driven-approach-to-choosing-lightning-deals-on-amazon\/","title":{"rendered":"A data-driven approach to choosing Lightning Deals on Amazon","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

The post-Prime Day glow is still fresh, so it might sound strange to point out that it\u2019s time to start finalizing your Q4 deals. <\/p>\n\n\n\n

If you are planning to submit Lightning Deals for any of Amazon\u2019s big sales events this fall, the deadlines are creeping up. The deadlines for Lightning Deal submissions are as follows: <\/p>\n\n\n\n

Fall Prime Event<\/strong>: August 11<\/p>\n\n\n\n

Black Friday and Cyber Monday<\/strong>: September 1 <\/p>\n\n\n\n

Only certain products<\/a> are eligible for Lightning Deals. But if you do have a bunch of eligible products, the upcoming deadlines create a thorny question. Which products should you prioritize for Lightning Deals? Which will bring the most value to your company?<\/p>\n\n\n\n

The answer is complicated, but one thing that helps you sort through it is good data. <\/p>\n\n\n\n

Having an organized approach to data management lets you quickly narrow down products based on stats like share of New-To-Brand conversions, item-level profitability, and more. <\/p>\n\n\n\n

Here\u2019s how we at Intentwise think about Lightning Deals. <\/p>\n\n\n\n

Which of my products are most worthy of Lightning Deals? <\/strong><\/h3>\n\n\n\n

As you decide which products to submit for deals, here are some key factors to consider: <\/p>\n\n\n\n

Long-tail thinking.<\/strong> Generally, Lightning Deals should focus on your top-selling ASINs. These are your proven moneymakers. Giving them a discount can lure in a bunch of customers, quickly. <\/p>\n\n\n\n

It can also keep those top sellers from being eclipsed. Think about it: Q4 is the biggest sales quarter for many brands. If your competitors put their top products on Lightning Deals but you don\u2019t, there\u2019s a chance they could overtake yours in Amazon\u2019s organic sales ranking or get more visibility on Amazon. <\/p>\n\n\n\n

That will hurt you throughout the rest of Q4. Not leveraging deals, in other words, can set you back at a critical time. <\/p>\n\n\n\n

It\u2019s also important to consider the long-term impact of a Lightning Deal. The deals you run aren\u2019t about the sales you get that day. They\u2019re about the sales you get six months later. <\/p>\n\n\n\n

By increasing your revenue and conversion rate during a sales event, you can boost your organic ranking\u2014and drive incremental conversions\u2014for the long term.<\/p>\n\n\n\n

Profit margins. <\/strong>The above tip is not to say you should just submit every<\/em> top product for a Lightning Deal without thought. One big factor to keep in mind before you submit a Lightning Deal is your profit margins. <\/p>\n\n\n\n

Putting products on a Lightning Deal will inevitably eat into your margins. Lightning Deals cost upfront cash (typically between $300-$750 per deal). Plus, you are making less per product with each sale. <\/p>\n\n\n\n

The solution is to be realistic about what kinds of margins you can afford. <\/p>\n\n\n\n

Plenty of brands don\u2019t mind breaking even on their Lightning Deals, in exchange for the promise of long-tail organic sales. But in this period of increased focus on profitability, lots of brands are leery of taking a big hit in their margins. <\/p>\n\n\n\n

Instead, prioritizing products with healthy profit margins for Lightning Deals makes the most sense. <\/p>\n\n\n\n

This is another place where data comes in handy. When you have an organized approach to your data infrastructure through tools like Intentwise, you can see, for example, your profitability from past Prime Days. <\/p>\n\n\n\n

That lets you quickly identify which products are the most profitable, and therefore which might make sense for a Lightning Deal. <\/p>\n\n\n\n

New-To-Brand (NTB) metrics. <\/strong>Beyond just your top-selling products, you might scrutinize metrics like New-To-Brand when deciding what to submit for a deal. <\/p>\n\n\n\n

Which of your products tend to be the major gateways for new shoppers? These aren\u2019t always your top sellers. Sometimes, a mid-tier product can have a disproportionately high NTB share. Those are potentially the products you want to put front and center on big deal days. <\/p>\n\n\n\n

Seasonality.<\/strong> You should prioritize products that have a high degree of seasonality.<\/p>\n\n\n\n

On one hand: By placing deals on products that lend themselves well to holiday gifts, or that have a specific winter tie-in (blankets, for example), you can build up your organic sales rank going into your most important shopping period. <\/p>\n\n\n\n

But fall deals are also the last time you can sell outstanding merchandise from your summer season products. Have excess inventory of beach towels or bathing suits that you need to sell through? A deal could be a great way to clear it out. <\/p>\n\n\n\n

There are other cases to consider<\/strong><\/h3>\n\n\n\n

Product launches. <\/strong>Have a new product you\u2019re excited about that needs some traction? A well-timed deal could be a good way to jumpstart sales and, hopefully, up your review count and your sales rank. <\/p>\n\n\n\n

Slow-moving ASIN. <\/strong>If you have a product that has yet to find its core audience, a sale could be a way to draw extra eyeballs to it. <\/p>\n\n\n\n

Liquidation: <\/strong>Once in a while, a brand has a bunch of discontinued products it wants to sell through at any given cost. Offering a discount slot could be a good way to get rid of excess inventory. <\/p>\n\n\n\n

Lightning vs. Coupons vs. Prime Exclusive? <\/strong><\/h3>\n\n\n\n

Not all of the deal deadlines for the fall are coming up in the next few weeks. The August 11 and September 1 deadlines are specifically for Lightning Deals. <\/p>\n\n\n\n

If you want to run Coupons or Prime Exclusive Discounts, you can set these much closer to the sales event.<\/p>\n\n\n\n

How do you choose between deal types? <\/p>\n\n\n\n

Here\u2019s the difference:<\/strong> <\/p>\n\n\n\n