Voucher / Vendor Powered Voucher (VPV)

 Vouchers are one of Amazon’s most visible promotional tools, appearing as brightly coloured tags (“Save $5”, “Save 10%”) on search results and product detail pages. They are fully vendor- or seller-funded, meaning Amazon does not cover the discount.

How It Works:

• Vendors or sellers set up vouchers in Vendor Central or Seller Central.
• Discounts can be configured as either:
  • Monetary value (e.g., “Save $5”)
  • Percentage value (e.g., “Save 15%”)
• Customers “clip” the voucher by clicking on the badge, and the discount is applied at checkout.
• Amazon charges vendors for the cost of redeemed vouchers, plus a small merchandising fee (varies by marketplace).
• Vouchers can run for specific ASINs, time periods, or campaigns (e.g., Prime Day).

Benefits for Vendors/Sellers:

• Increased visibility: Voucher badges stand out in search results and boost click-through rates.
• Higher conversions: Discounts encourage purchase and reduce price sensitivity.
• Flexible targeting: Can be applied to specific ASINs, categories, or promotional events.
• Customer engagement: Gives buyers a sense of “control” by clipping the deal themselves.

Benefits for Amazon:

• Promotes competitive pricing without Amazon funding discounts.
• Improves customer satisfaction by surfacing visible, redeemable savings.
• Strengthens Prime events (e.g., Prime Day, Black Friday) with additional deals.

Challenges:

• Entirely vendor-funded, reducing margins.
• Vouchers require budget planning, especially during peak seasons when redemption rates are high.
• Negative perception possible if voucher discount is too small to appear meaningful.

Why It Matters:
Vouchers are one of Amazon’s most effective retail media tools - they improve visibility, drive conversions, and build trust with customers. They are especially valuable for new product launches or high-competition categories.

Example:
A beauty brand launches a new moisturizer and funds a 20% Voucher for the first three months. The voucher badge increases click-through rates, generates early sales, and helps the ASIN gain reviews faster.

In short:
Voucher / VPV (Vendor Powered Voucher) is a vendor- or seller-funded discount displayed as a redeemable badge on Amazon product pages, boosting visibility, conversions, and sales at the expense of vendor margins.