Why Discounts Hurt Your Brand on Amazon (And What to Do Instead)

Discounting hurts your brand long-term.

As tempting as sales spikes are, aggressive discounting has hidden costs: 

• It erodes margins. Short-term revenue gains are offset by lower profit margins. 
• It trains consumers to wait. Shoppers begin expecting frequent discounts, hurting your ability to sell at full price.
• It damages brand value. Consumers associate your products with price cuts instead of quality, undermining your brand’s premium positioning. 

Once shoppers become accustomed to discounts, shifting their mindset becomes increasingly difficult. Recent industry insights highlight that frequent discounts can significantly reduce consumers’ willingness to pay full price, leaving brands vulnerable to sustained margin pressures. Amazon thrives on a cycle of continuous promotions, encouraging consumers to hold out for lower prices and brands to participate in sales events to stay visible. But this turns pricing into a race to the bottom. When a brand tells me, “Sales are up, but our margins are suffering,” one of the things I ask is: Are you controlling your discounting strategy, or is Amazon controlling it for you? 

Here are smarter ways to win Amazon sales events.

To protect profitability while still benefiting from Amazon’s major sales events, brands need strategic alternatives to pure discounts: 

1. Bundle for value. Instead of slashing prices, create bundles to enhance perceived value. This naturally increases your Average Order Value (AOV) and maintains healthier margins.

Example: A skincare brand combined popular full-priced products with trial sizes in bundles for Prime Day, preserving margins and driving higher sales volumes.

2. Leverage Subscribe & Save and repeat purchases. Use sales events as a springboard for customer retention. Promoting Subscribe & Save discounts can drive long-term customer loyalty rather than one-time transactions. 

Example: A pet food brand promoted a 10% Subscribe & Save offer during Prime Day, securing ongoing monthly purchases and consistent long-term revenue.

3. Emphasize brand building and premium positioning. Sometimes the most effective strategy is not discounting at all. Instead, invest in branding, storytelling, enhanced product pages and high-quality creative content to justify premium pricing.

Example: A luxury kitchenware brand eliminated discounts entirely, focusing instead on premium branding, optimized listings and strategic ad placements to maintain full-price sales throughout Amazon’s sales events. 

4. But if you must, be selective with discounts. Not every product needs a price cut. Discount strategically, focusing on slow-moving inventory, new product launches or lower-priced items that attract new shoppers without sacrificing premium product margins. 

Example: A home goods brand offered discounts on select introductory items during Prime Day to attract new shoppers while preserving full prices on premium core products. 

Take control of your Amazon strategy.

Amazon’s promotional strategy doesn't have to dictate yours. If you control how and when you discount, you can win sales events without losing pricing power. But if you let Amazon dictate your pricing cycle, you risk becoming just another brand in the discount bin. At Monks, we prioritize your long-term success, guiding strategic decisions rather than short-term sales spikes. Our expert strategists are here to help your brand achieve sustainable, profitable growth on Amazon. Reach out today to start winning smarter.