Discount funding
Hello guys,
It's the first time I'm writing, nice to meet you all.
I have a doubt and would like you to help me out, if anyone understands how it works.
I'm doing a promotion and once configured there is this sentence that I understand means that I am supposed to pay to Amazon the promotion amount in case of sales of the products in promotion.
Please look at the original sentence, here's a quote:
"The total amount of funding, in local currency, you would provide if the ASIN sold through all of its committed units. Potential funding is calculated by multiplying the Funding per unit and committed units for the ASIN."
So should I understand that for example for a product that costs 100USD I make a minimum promotion of 16% and I have to provide the funding of minimum also at least 100USD?
Does it mean that when I sell for example 6 of those products out of which each one will cost 16 USD less, should I supposed that those 6 x 16 USD = 96 USD that I pay to Amazon and they earn it out of my pocket?
So the Client gets 16 USD promotion, but this is only him who pays less, but the earning for Amazon is even bigger, because I pay them their cut plus those 16 USD?
Thank you very much for your response,
Best regards,
Natalia
Discount funding
Hello guys,
It's the first time I'm writing, nice to meet you all.
I have a doubt and would like you to help me out, if anyone understands how it works.
I'm doing a promotion and once configured there is this sentence that I understand means that I am supposed to pay to Amazon the promotion amount in case of sales of the products in promotion.
Please look at the original sentence, here's a quote:
"The total amount of funding, in local currency, you would provide if the ASIN sold through all of its committed units. Potential funding is calculated by multiplying the Funding per unit and committed units for the ASIN."
So should I understand that for example for a product that costs 100USD I make a minimum promotion of 16% and I have to provide the funding of minimum also at least 100USD?
Does it mean that when I sell for example 6 of those products out of which each one will cost 16 USD less, should I supposed that those 6 x 16 USD = 96 USD that I pay to Amazon and they earn it out of my pocket?
So the Client gets 16 USD promotion, but this is only him who pays less, but the earning for Amazon is even bigger, because I pay them their cut plus those 16 USD?
Thank you very much for your response,
Best regards,
Natalia
1 reply
Angie_Amazon
Hello @Seller_Gq1KnllvoRc2V,
Let me clarify how promotional funding works when you create a discount on your products.
1. For your $100 product example:
- You only pay the $16 discount per unit sold
- The customer pays $84 (after 16% discount)
- You receive $84 (minus standard Amazon fees)
- Amazon gets only their regular fees
2. For 6 units sold:
- Total discounts = $96 ($16 × 6 units)
- This $96 goes directly to customers as savings
- You receive $504 ($84 × 6 units), minus regular Amazon fees
- Amazon does NOT get the discount amount
To protect your profits, you can:
- Adjust the discount percentage (minimum 5%, maximum 50%)
- Set a total budget limit for the promotion
- Set a specific timeframe for the promotion
Important: This is for seller-created promotions. There's a different program called “Discounts Provided by Amazon” where Amazon funds the discounts instead of you, and you receive the full product price. These are two separate programs.
For more details you can visit:
Regards,
Angie 🦩
