‍The beauty of the modern shopping landscape is that customers have more ways than ever to spend their money. The challenging part for brands and retailers is staying ahead of the curve on what new ways consumers will prefer to spend their money next. With so many options, one way brands are battling for our attention and dollars is by implementing BOGO (Buy One, Get One) promotions.

BOGO or multi-buy-promotions has traditionally been used as a way to drive sales during the final days of a season or as a marketing strategy during times when demand has fallen off from previous peaks. In this article, we’ll explore everything you need to know about running a successful BOGO promotion on Amazon as an seller. We’ll discuss strategies and tactics you can implement today, pitfalls to avoid, and how other sellers have succeeded with BOGO campaigns in the past.

What is a BOGO Promotion?

BOGO_ Buy 1 Get 1 Free

A Buy One, Get One promotion is exactly what it sounds like: If customers purchase one item, they get a second item for free. BOGO promotions are designed to drive sales by creating a sense of urgency. Depending on the retailer, this can be driven through a variety of ways. Some common examples include “Special Offers,” “Special Deals,”“Expiring Soon,” “Limited Quantity Available,” “Limited Time Offer,” and “First Come First Serve.”

For example, let’s say a shoe retailer is running a BOGO offer on their most popular style. Customers who purchase one pair of the featured shoes will receive a second pair free. The retailer is hoping that customers respond to the deal because they are getting two pairs of shoes for the price of one.

Why Run a BOGO Promotion?

There are a variety of reasons why brands might choose to run a BOGO promotion. Some of the most common motivations include: –

  1. Drive sales – One of the simplest reasons for a BOGO is to increase sales. It is a crucial aspect of eCommerce promotions, and they are also an excellent way to increase engagement and conversion rates from marketing campaigns. By offering an additional product for free, retailers hope to increase the number of customers who are inclined to purchase at all.
  2. Drive traffic– Another reason to run a BOGO is to drive traffic. BOGO promotions can be an attractive offer for customers who might not have otherwise considered making a purchase.
  3. Drive brand awareness– On the other side of the coin, BOGO offers can also drive brand awareness. This can be especially helpful during the holiday season when many retailers are competing for limited consumer attention spans.

When to Run a BOGO Campaign?

There’s no right or wrong time to run a BOGO promotion. That said, some times of the year work better than others.

  • Holiday Season– The holidays are undoubtedly the most effective time of year to run a BOGO promotion. For many retailers, the holiday period is the biggest sales period of the year.
  • Mid-Season Slump– It is one of the most effective promotion period of the year to run a BOGO promotion is when the demand for your product has slowed down. Typically, this happens somewhere between the beginning and the middle of the season.
  • Closeout Period– If you’re still trying to shift inventory from a previous season, a BOGO might be a good way to clear out inventory without completely discounting it.

Amazon BOGO Basics

The first thing you’ll need to know is which products are eligible for a BOGO promotion. Amazon only allows BOGO promotions on products that are eligible for Amazon Prime. You’ll also need to determine whether the BOGO is eligible exclusively for qualifying products, or if it is eligible for all products. Plus, you also have to choose the type of promotion. You’ll want to be selective when choosing which products you want to include in your offer. If you’re running a BOGO promotion and one of the products is out of stock, the promotion won’t be as effective.

How to Make a BOGO Work for you?

Identify your core product– If you’ve decided to use BOGO as part of your marketing strategy, the first thing you’ll want to do is identify your core product. Oftentimes, brands will create a BOGO promotion that includes the core product and several additional items. You’ll want to make sure you have a core product that is priced competitively and is appealing to the majority of your target audience.

Make the BOGO exclusive– If you’re going to include additional products in your BOGO promotion, you’ll want to make them exclusive to the BOGO promotion. This means you’ll need to make sure that customers who want the additional products are purchasing them together.

The Pros of Running a BOGO Campaign

There are a lot of upsides to running a BOGO campaign, but the biggest one is that it’s a simple way to drive more sales. A BOGO promotion has the potential to bring in more customers, which can help alleviate inventory issues and boost overall sales during a slow period. A BOGO promotion is also an effective way to drive brand awareness. Customers who might not have otherwise considered your brand or product might be enticed by a BOGO offer and end up buying your product.

Finally, BOGO promotions are also a great way to clear out inventory that’s been sitting on the shelves for too long. If you’re trying to get rid of old inventory that isn’t moving, a BOGO promotion might just be the thing you need to move it out the door.

The Cons of Running a BOGO Campaign

BOGO promotions are incredibly effective at driving sales, but they also have the potential to cut into your profit margins. Because brands are offering customers a discount on the second item, they’re essentially paying for the second item with their own money. This can be especially challenging for brands selling on Amazon, as most BOGO offers are fulfilled by Amazon itself.

If you’re an Amazon seller running a BOGO promotion, you’ll have to pay Amazon for the second item, as well as cover the costs associated with organising and fulfilling the orders for the second item (shipping, storage, etc.). While BOGO offers can be a great way to drive sales, they can also be a great way to lose money if you don’t have a solid plan in place.

Conclusion: Should you Run a BOGO Promotion?

No matter what time of year you decide to run a BOGO promotion, you’ll want to make sure you have a solid plan in place. You should know exactly what products are included in the sale, as well as which products aren’t eligible. Depending on your product and industry, you may even want to limit the quantity of items that are included in the BOGO promotion.

The last thing you want is to be stuck with an overwhelming amount of inventory because you didn’t cap the number of items that were included in the sale. With the right plan in place, a BOGO promotion is an excellent way to drive sales and brand awareness. The key is to make sure you’re doing it the right way by following Amazon’s BOGO rules and keeping customers happy with their purchase.