Prime Exclusive Discounts (PED): How The Latest Update Will Affect Big Deal Days and Beyond

If you’re an Amazon seller, you’ve probably asked yourself whether Coupons or Prime Exclusive Discounts (PED) are more effective for boosting sales. 

With Amazon’s latest update to PED fees starting on August 14, 2024, it’s time to revisit this question and explore what’s new.

What Are Prime Exclusive Discounts (PED)?

Prime Exclusive Discounts (PED) are promotions available to sellers who want to offer exclusive deals to Amazon Prime members. 

In addition to connecting you to more qualified/more-likely-to-convert customers, PEDs can also help increase the visibility of your products during high-traffic events like Prime Day, Prime Big Deal Days, and Black Friday / Cyber Monday. 

Here is the key criteria for PED:

• Minimum Discount: 10% off (20% off during special events like Prime Day or Black Friday)
• Eligibility: Must have a product rating of at least 3 stars and be eligible for Prime shipping
• Seller Feedback: A minimum of 3.5 stars or no rating 
• Product Types Excluded: Used, collectible, or refurbished items, as well as certain categories that are deemed “restricted” (ex. Guns)
• Price: Must be less than lowest price for the ASIN in the past 30 days (including all deals, promotional, and sale prices across all sellers). Must be at least 5% lower than the reference, or list, price.  

PEDs have always been free for sellers to use, making them an attractive option for driving conversions, especially when compared to the $0.60 fee per redemption charged for Coupons. 

However, this changes with the new update.

What’s New in the August 2024 Update?

Starting August 14, 2024, Amazon has introduced a $50 fee for each PED promotion that runs during specific deal events in the U.S., beginning with the expected October Prime Big Deal Days event. 

Here’s how the new fee will be applied: 

• New Event Fee: A $50 fee will now be charged for each PED that runs during high-traffic events like Prime Day and Black Friday. This fee applies to every product included in the promotion. 
• Sales-Dependent Fee: The $50 fee will only be charged if the PED generates at least one sale during the event. If no sales are made, no fee will be incurred.
• Non-Event Days Still Free: PEDs that run on non-event days will continue to be free of charge.

This is a significant shift from previous years when PEDs were entirely free, even during major sales events.

Coupons vs. Prime Exclusive Discounts (PED): Which is Better?

So, which promotional tool should you choose—Coupons or PED? The answer largely depends on your goals, the specific criteria of your products, and now, the cost implications.

Here’s what to consider outside of Prime Day / other major events: 

• Coupons:
  • Fee: $0.60 per redemption
  • Discount: Minimum 5% off
  • Eligibility: Products can be seller-fulfilled or FBA
  • Badge: Coupon badge displayed on the Coupons page
  • Best For: Increasing impressions and traffic, especially for listings that need more visibility
• Prime Exclusive Discounts (PED):
  • Fee: Previously free, now $50 for events as of August 2024
  • Discount: Minimum 10% off
  • Eligibility: Must be Prime eligible and in new condition
  • Badge: Event deal badge during major sales events
  • Best For: Enhancing conversion rates for listings that already receive good traffic

On the other hand, here are some considerations during major events and Prime Day: 

• Both Coupons and PEDs require a minimum discount of 20% off.
• Coupons continue to incur the $0.60 fee per redemption, while PEDs will now cost $50 per event if sales are generated.
• PEDs with a 20% or higher discount will display an event-specific badge, which can significantly boost clicks and conversions.