Last week I wrote about an amazing promotion where you could receive 20% off your purchase at Amazon by applying just 1 Membership Reward point to your purchase. Most readers, including myself, used this promotion to purchase third-party gift cards (i.e., Whole Foods, Southwest, Nordstrom, AirBnB, etc.). While this was an awesome way to save money for purchases outside of Amazon, it seems as though the 20% off is actually giving out an even higher discount on some items!
Per Dan’s Deals, the 20% off discount is coming off the original price of the item, not the discounted price! So if an item is on sale due to a Prime Day Deal, you’ll see a discount equivalent to 20% off the original price, NOT the discounted price – which provides significantly more savings! For example, if you were looking to purchase this Echo Show, you’ll receive 20% off the original price of $229.99, instead of the discounted price of $129.99. This means you’ll get an additional $46 off instead of just $25.80 (20% of $129.99). 
I tested this out on many items and it seems to be working this way on all discounted deals! This is the perfect opportunity to receive an even higher discount on Amazon Device items that are already heavily discounted. Related blog post. I presume it will work in a similar manner on many additional items throughout Prime Day that have a discounted line item tied to it and not just a sale price. The only thing I do not see it stacking with are promotions where you are already getting a discount by using 1 membership reward point, such as the Amazon Kindle E-Readers and Amazon Fire Tablet promotions.
I personally was able to receive the 20% off discount twice per account, but that seems to vary per account. To get the 20% discount to appear, you must ACTIVATE the promotion first. You then must apply 1 Membership Reward point to your purchase during the checkout process. You can receive up to $100 savings and I do not believe it applies on cumulative purchases, but instead for your entire purchase – so make sure to add everything to your cart at once to get get the max savings!
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Was this a targeted promotion? I tried the link to activate and it says that I am not eligible for the promotion.
@Raymond – It is.
“Thank you for your interest. Unfortunately you are not eligible for this offer.”
Not sure what their criteria is, but no luck here.