The Pros & Cons of Amazon Giveaway for Marketers

One of the biggest online retailers just got into the sweepstakes game today with Amazon Giveaway. And it looks like an attractive option. Running a sweepstakes involves a bit of work after all. There are entry forms to create, rules to write, prizes to ship out and even tax issues to handle.

Amazon handles most of that. So we can see why a self-service tool like this will appeal to “everyone from authors, aspiring artists, non-profits, brands, bloggers, social media gurus and more.”

But if you’re a brand marketer or have your own business, there are a few cons to consider as well. First, let’s go over how it works…

How it Works

  1. Select a prize on Amazon and pay for it.
  2. Use the wizard to set up the sweepstakes.
  3. Get a link you can share by email or on social media.
  4. Entrants click and log in to Amazon to enter (they must have an account).
  5. Entry is an easy instant-win process.
  6. Amazon notifies the winner, ships the prize & handles tax reporting.

A look at how it works

Sounds easy right? But there’s more to consider. Here are the pros and cons to using Amazon Giveaways for your sweepstakes:

PROS

  • Easy to set up
    You can leave most of the work up to Amazon, including entry setup, (some) rule requirements, winner notification, prize fulfillment and tax reporting.
  • Easy to enter
    It’s as easy as logging in and clicking two times to find out if you’re an instant winner.
  • More than a million prizes to choose from
    Electronics, books, home appliances… you name it, Amazon probably has it.
  • Option to build your Twitter following
    You can build in an option asking entrants to follow your Twitter account. This could help you grow your Twitter following obviously (a tweet doesn’t seem required though).

CONS

  • Who entered? You won’t know
    This is the biggest drawback of using the tool: you won’t know who entered. Sure, you’ll find out who won and may get a boost in Twitter followers, but that’s about it. As marketers, we all want to gather information from entrants (email or perhaps other details), but with Amazon Giveaway this is not an option. Per our contact with the company, all you’ll get is the winner’s name and address.
  • Website traffic? Yes, to Amazon
    Having the entry on Amazon means your prospects or customers will be visiting the big A’s site, not yours. Remember, all you’re getting is a link to the giveaway. We suppose you could set up a landing page or blog post to post the link on your site, but all your traffic will leave and will surely get hooked into wandering around this behemoth’s site, rather than your own. (The thank you page doesn’t link back to your site, in case you’re wondering.)
  • Official Rules are still your responsibility
    Some of the legal aspects are handled in the setup. For example, the overall prize value can’t exceed $5,000 (otherwise, you’d have to file a surety bond in certain states). This is helpful, but you’ll still need to create Official Rules for your sweepstakes and host them on your site.
  • Brand-centric or high end prizes are ruled out
    Yes, there are more than a million products to choose from, but there are still limits. You won’t be able to offer your own merchandise (unless it’s available on Amazon), gift cards to your store/site or items excluded by Amazon such as digital songs, movies or apps, along with Marketplace items (sold by third party vendors). Trips, cars and other luxury goods are also ruled out.

Longer-term benefits are missing

This tool will be great for Amazon’s business, but won’t give you all of the benefits of a good sweepstakes—especially, the ability to contact entrants after the promotion. You’ll get a temporary buzz boost, extra Twitter fans and the goodwill of offering a free prize, but the longer term benefits are missing.

Overall, Amazon Giveaway is a great option if you’re not worried about building your email (or mobile) list or don’t want the means to further contact entrants . But, for us as marketers, we consider that a primary goal.

Visit the site to try the tool for yourself.

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