Understanding promotional rebates
When I run a promotion, the revenue received is the reduced price (i.e. the price with the discount to the end consumer included). Why does Amazon then charge a Promotion rebate to reduce the amount even further?
Thanks in advance
5 replies
Ezra_Amazon
Hi @Seller_K551hPoQKL76Y,
Amazon charges a Promotion rebate because when you offer a discounted or promotional price to customers, that discount is directly passed on to them.
However, Amazon still expects to receive their standard referral fee based on the original, non-discounted price of the item before any promotions were applied.
For more details, you can check out Referral fees for orders with promotions.
In simple terms, while the promotional price reduces the amount you receive from the customer, the Promotion rebate ensures that Amazon still gets their share of the referral fee calculated from the original, non-discounted price.
Please let me know if this explanation makes sense or if you have any further questions!
Best regards, Ezra
