Prime Exclusive Deals Now Available All Year
In August, Amazon expanded its Prime Exclusive Deals (PEDs) offering, allowing brands to create these promotions not only during major events like Prime Day but at any time throughout the year.
This move opens new opportunities for brands to engage with Prime members, Amazon’s most frequent and loyal shoppers, offering exclusive discounts while retaining standard prices for non-members.
Now, let's take a closer look at the implications of this.
What Does This Change Mean for Brands?
PEDs are now available year-round, but there are certain criteria brands need to meet to take advantage of this feature. PEDs are available only to sellers, not vendors, which means those working directly with Amazon as third-party sellers can leverage this tool. To qualify for a PED:
- Your product must be “new” (not used or refurbished) and either have no ratings or a rating of at least three stars.
- It must also have a reference price and meet certain discount thresholds, typically a minimum of 5%, with stricter requirements for special events like Prime Day.
- If the product’s price is the lowest in the trailing 30 days, your PED is more likely to be approved, although this isn’t always a strict requirement.
- Good account health, such as a low late dispatch rate and pre-fulfillment cancellation rate, is required. Additionally, products should not be in restricted categories.
PEDs vs. Lightning Deals & Best Deals
One of the key differences between PEDs and other Amazon promotions, like Lightning Deals (LDs) or Best Deals (BDs), is that PEDs generally require less aggressive discounting. While LDs often demand deep discounts to be effective, PEDs allow more flexibility with pricing, often requiring a discount of just 5%. This offers brands a way to engage customers without slashing prices to the same extent as LDs, which can negatively impact profit margins.
In addition, PEDs run for a longer period, up to 30 days, compared to BDs, which are limited to just two weeks. The extended runtime means that brands can maintain visibility for a longer period, making PEDs an attractive option for those looking to boost sales over a month instead of just a few days. This added duration also provides brands with a sustained promotional opportunity, which can help in driving repeat purchases from Prime members.
Best Practices for PED Setup
Setting up PEDs comes with its own set of challenges, and success often depends on ensuring the setup meets Amazon's stringent rules. Brands should be prepared for potential price checks before the deal begins. Amazon occasionally flags discounts that don’t meet the lowest price of the last 30 days, especially if other sellers have temporarily undercut the price.
One important note is that PEDs can only be set up to two months in advance. This gives you some time to plan, but it’s crucial to keep the timing restrictions in mind when scheduling your promotions.
Given the stringent eligibility criteria, regular monitoring is important. Check PED setups before their scheduled start dates to ensure that no errors have occurred in the setup process. With proper management, PEDs offer significant value, consistent visibility, and strong conversion potential through Amazon's Prime customer base.
Final Thoughts
PEDs provide a valuable opportunity for brands to engage Prime members year-round with targeted promotions. While certain criteria and setup steps must be carefully followed, the long runtime, minimal discount requirements, and added visibility make PEDs an essential tool for e-commerce brands aiming to stand out on Amazon.
At Front Row, we help brands navigate these complexities, ensuring that each deal maximizes its potential. Reach out to us to ensure your PED strategy aligns with the latest best practices and delivers results.
