Amazon Lightning Deals Explained: Are They Worth It?

What Are Amazon Lightning Deals?

Amazon lightning deals are time-sensitive and limited-stock promotional offers available across the Amazon marketplace.

If you’ve been selling on Amazon for some time, there are high chances you’ve heard about lightning deals on Amazon. These deals can be a perfect way to increase your ranking on Amazon and improve your business if you are willing to temporarily sacrifice your revenue.

Like all promotions, Amazon lightning deals have their own advantages and disadvantages. If you’ve not leveraged Amazon lighting deals before as an Amazon seller, you may be wondering what’s in for the seller.

In this blog post, we’ll cover the subject of Amazon lightning deals in detail. We’ll look at the pros and cons of these deals, how they work, how to create an Amazon lightning deal, and much more to help you decide if they are worth it.

What are Amazon Lightning Deals?

Amazon lightning deals are time-bound, limited-stock promotional offers available on Amazon. Amazon offers these deals for a short period of time, usually 4 to 12 hours to entice customers to buy items.

Lightning deals Amazon limits to one per customer and ends when the product completely sells out, or the offer period expires, whichever comes first.

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Amazon lightning deals appear under the “Today’s Deals” section on the Amazon website. You can also find these deals across the Amazon website during Prime Day, Black Friday, and festive seasons.

Amazon runs thousands of lightning deals every day in various categories, including fashion, beauty, tech, home, and many more.      

When a lightning deal Amazon begins, it appears with a status bar indicating the number of items that have been claimed and a timer showing how long the buyer has to check out or lose the deal. The lightning deal will also feature the product’s actual price, the discounted amount, and the final price. Since these deals are extremely time-sensitive, the buyer may have to check out as soon as possible, otherwise, they’ll lose the deal when the promotion period runs out, or the items on offer are 100% claimed.

To qualify for lightning deals, Amazon will require that you offer an appealing discount, normally 15% or more. You’ll also pay lightning deal fees to be able to hold these promotional offers. There are many other eligibility requirements that you’ll have to meet to qualify to run lightning deals on Amazon. We’ll look at these requirements in another section.

Whether you’re a new seller looking to improve your business, or a seasoned seller seeking to strengthen your brand, you can benefit from lightning deals Amazon. Apart from making more sales, these deals help to drive more traffic to your product page, hence improving your ranking in the long run.

How Do Amazon Lightning Deals Work?

These deals are available to both sellers and vendors.  You can access them from within your Advertising Tab on Seller Central. As we’ve already mentioned, these deals are available for a limited time and run until the promotional period expires or until the product on offer completely sells out.

When you run a lightning deal on Amazon, shoppers will see the item featured in the deal and a label that affirms that the item is a lightning deal. It will also feature the item’s actual price and the final price to show customers the amount they can save. Below the price, there will be a status bar indicating the percentage of products that have been claimed. Also, you’ll see a timer indicating how much time is left on the deal.

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The image below shows some of the lightning deals on Amazon. From the image, you can see the anatomy of an item with a lightning deal on Amazon. 

Lightning deals Amazon are limited to one per customer. In other words, a customer can only purchase one of each of the lightning deal items.

A customer has 15 minutes to check out once they add a lightning deal item to their cart. When you add the item to your cart, there will be a timer indicating the time left to process the transaction. If you don’t check out within 15 minutes, you’ll miss out on the deal.

Amazon has designed these deals in a way that they are enticing to buyers. The one per customer rule, the time limit, and the limited quantity make lightning deals worthwhile for buyers. Price-savvy customers looking for exciting discounts on items feel compelled to check out on the spot so that they don’t lose out on these deals. 

All you need to run lightning deals on Amazon is to meet eligibility requirements, pay lightning deals fees, and offer a reasonable discount that will entice Amazon shoppers to buy your items.

How Much Do Lightning Deals Cost?

If you decide to run lightning deals Amazon, you’ll be required to pay a fee. The fee is typically $150, though it may vary depending on the marketplace, seasonality, overall demand, and the timing when your deal runs. The fee amount can be higher when the overall demand is higher or timeframes when there’s greater customer traffic. Also, you can expect the fee amount to be even higher during events such as Prime Day and Black Friday. The fee is automatically deducted from the seller’s account only after the deal runs.

NOTE: The fee amount you’ll pay to run a lightning deal is not affected by the price, quantity, performance of the deal or variations included in the deal.    

You’ll see the fee amount to pay for a lightning deal next to the Submit button when you submit your item.

When calculating the cost of a lightning deal, you’ll need to account for the promotional discount amount. Amazon requires that you give at least a 15% discount, but it’s best to offer a 20-35% to entice more buyers.

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Despite the fee that you have to pay to run a lightning deal Amazon, the cost is worth it in the long run. When you run a lighting deal on Amazon, you can expect a major boost in your sales up to four times your regular daily sales. If you’re new on Amazon or you’ve recently added new products to your catalog, and they haven’t hit their stride yet, it’s a good idea to leverage Amazon’s lightning deals.   

Eligibility Requirements to Run Amazon Lightning Deals

These are the conditions that you must meet to be eligible to create a lightning deal:

  • You Must Be A Professional Seller: That means sellers with an individual account are not eligible to create Amazon lightning deals. The Professional Seller Account costs $39.99 per month.
  • You must have at least five seller feedback ratings per month 
  • Hold An Overall 3.5-Star Rating: You must have a sales history with a rating of at least 3.5 to be allowed to create a lighting deal. If your rating is below 3.5,  you’ll have to focus on improving your Amazon feedback rating by providing a great consumer experience.

The products you want to feature in Amazon’s lightning deals must also be eligible. Specifically, your products must meet these criteria:

Your products must hold a rating of at least 3.0- stars.

Note: The product reviews must be compliant with Amazon’s customer product reviews policies.

  • The product must cover all its variations, where applicable
  • All products must be in new condition. That means you cannot run ‘USED’ items on lightning deals.
  • Your products should not be restricted, offensive, or inappropriate
  • The product must be Prime-eligible in all regions
  • Your product must comply with pricing policies as well as deal frequency policies

Amazon is strict when it comes to compliance with its policies, so it’s important to follow these guidelines to avoid penalties and account restrictions. 

What Are the Advantages of Running Lightning Deals On Amazon?

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Running lighting deals Amazon seller will provide the following benefits:

Increase In Sales:

Like any other promotions, lightning deals are appealing to most shoppers, especially the price-savvy ones who are looking for the best deals. Although Amazon doesn’t make any promises regarding a boost in sales, you can expect a boost in sales anywhere from 2 to 4 times your regular daily sales. Even after the lightning deal is over, you can expect to see a continuation of the sales momentum.

If you’re struggling to make sales on Amazon and you can afford to give discounts of up to 25% on your products, it can be a good idea to give these lighting deals a try.

Clears Overstocked Or Stagnant Inventory:

Perhaps you’re looking to avoid long-term storage fees or have excess or stagnant inventory that you want to get off your hands. Through Amazon lightning deals, you can dispose a lot of inventory at once. By getting rid of excess or stagnant inventory, you’ll be able to save on long-term storage fees or make space for products that will sell better.

Drives Traffic To Your Product Page:

A majority of Amazon shoppers visit the deals page to see if there are deals they can grab. In fact, the deals page is the most frequented page on the Amazon marketplace. Therefore, running lightning deals will result in an influx of customers visiting your product page even after the deal is over. The increased flow of traffic translates to improved organic ranking for your product listings thanks to clicks, reviews, and sales.

If you’re struggling to get your products in front of buyers, lightning deals Amazon seller can be a good way to increase the flow of traffic and strengthen your brand.

Lightning Deals Are A Great Way To Promote New Products:

If you’re selling new products and they haven’t hit their stride yet, lightning deals can be a perfect way to get your new products in front of many buyers.

Generally, the advantages of lightning deals Amazon go beyond making more sales on the day of running the deal. With more buyers coming in, you can improve your organic ranking and achieve higher conversions after the deals have lapsed.

The Downsides of Amazon Lightning Deals

Cost:

The main downside of lightning deals is the cost. Amazon requires you to pay a lightning deal fee starting from $150. The cost of running lightning deals can not only lower your profit margins but it’s also a disadvantage for sellers who don’t have the budget for running these deals.

Besides,

Amazon requires you to offer at least a 15% discount on your normal price to qualify. Taking into account the cost of running lightning deals and the value of your products, sometimes it may not be worth the amount you’d make from a boost in sales. But remember, you can still get benefits down the road.

Sellers Have No Control Over the Exact Time and Date to Run Lightning Deals:

Although sellers can propose the specific week they would like to run lightning deals, it is Amazon that determines the exact date and time for running the deals. They may choose to run them when customer traffic is low; hence a seller may not gain maximum exposure. It would be more ideal if sellers were allowed to choose the exact time and date for running their lightning deals.  

An Influx of Orders Can Cause a Challenge in Fulfilling Orders in A Timely Manner:

With lightning deals, you can expect a sharp increase in orders. Fulfilling these orders in a timely manner can be a challenge especially if you fulfill orders on your own. This can hurt your rating and reputation. If you can’t handle a possible spike in sales, running lightning deals may not be worth it.

How Do You Create Amazon Lightning Deals

Follow these steps to create Amazon Lightning Deals:

Step 1: Check If You’re Eligible to Run Lightning Deals:

To qualify to run these deals, you must have a professional seller account, have an Amazon sales history with at least five seller feedback ratings per month and hold an overall rating of at least 3.5. 

Step 2: Go to The Deals Menu On Your Amazon Seller Central:

Once there, navigate to Promotions, then go to Deals and click on Create a new deal. Next, choose your product and enter the relevant information for the deal.

Step 3: Schedule Your Amazon Lightning Deal:

Select a date range for the lightning deal. Remember that you can only select a specific week which you would like to run your lightning deal, but you cannot choose the exact date and time. It’s Amazon that will pick the exact date and time to run the deal.

Step 4: Enter The Deal Price and Number of Units Available for The Deal:

Enter your discounted price as well as the number of units available for the deal. Be sure to include your product’s variations, if applicable.

Step 5: Review Your Information and Submit:

Check the information you’ve entered to ensure it’s correct, and then submit your lightning deal for approval. Amazon will approve your lightning deal if you quality and schedule the date and time when your lightning deal will run.

These are the simple steps you’ll need to follow to run lightning deals on Amazon.

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Bottom Line: Are Amazon Lightning Deals Worth It?

Amazon lighting deals can help some sellers increase their sales and organic ranking on Amazon. However, this will depend on the value of the products you’re selling and your pricing.

For some brands, running lightning deals can be a costly affair; hence not viable. Before you consider running these deals, it’s a good idea to do some math while taking into account all the costs involved in running lighting deals. This will help you determine if running a lightning deal is profitable or not. 

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Frequently Asked Questions

How Does Lightning Deals Work On Amazon?

These deals run for a short period of time, usually 4 to 12 hours, and they’re limited to one per customer. Once a shopper adds a lightning deal item to their cart, they’ll have 15 minutes to check out. Once the time limit elapses, the customer loses out on the deal.

Are Amazon Lightning Deals Worth It?

Sellers can make leverage Amazon lightning deals to boost their sales and improve organic ranking. But keep in mind that not every product is suitable for a lightning deal. You’ll have to take into account the costs involved in running lightning deals to determine if they are worth it.

How Long Do Amazon Lightning Deals Last?

They last anywhere from 4 to 12 hours.

Are Amazon Lightning Deals Real?

Amazon lightning deals are real. You can buy lightning deal items at discounted prices on the “Today’s Deals” section on Amazon.

What Happened to Amazon Lightning Deals 2020?

Amazon moved lightning deals from their home page to the “Today’s Deals” section near the top of your page.

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