The Ultimate Guide to Ecommerce Discount Pricing Strategies and How to Implement Them Correctly
The humble discount has been a staple of commerce for years, and in the age of e-commerce, it is no exception. Discount pricing remains an effective tool that e-commerce can use to achieveBoost sales and increase engagement.
Discount pricing is more than just slapping a red sale sticker on your product. The art of eCommerce discounting requires careful planning. In this article, we’ll walk you through some of the most effective eCommerce discount pricing strategies that are guaranteed to send your sales soaring.
What is an eCommerce Discount Pricing Strategy?
Simply put, eCommerce discounts are the online version of in-store “sales” or promotions. ECommerce brands use discount pricing to increase sales. By whatsapp and digital marketing lowering prices or offering promotional offers, customers are more likely to make a purchase. There are many different ways brands apply discount pricing on their marketplaces (more on this later).
Discount pricing strategy refers to the “why” and “how” behind your discounts. You need to develop a discount strategy that fits your unique business goals. For example, this could be to unload slow-moving inventory or try to improve customer retention. Every eCommerce brand’s strategy will be different depending on what they want to achieve.
Why (and how) discounts work
Discounts are a time-tested way to increase sales and prevent shopping cart abandonment. But how does it actually work?
Well, it has a lot to do with human psychology.
When discounts are applied to consumer goods, products, or services, something called anchoring bias occurs. Anchoring bias is a phenomenon that works by emphasizing the contrast between the original price point and the marked-down price point.
Take Black Friday for example . Why do shoppers flock to stores and online marketplaces on this particular day every year? For those big savings, right? The entire premise of this day is really rooted in anchoring bias.
It “anchors” shoppers to the original (higher) price and by doing so generates the perceived value gained by purchasing the discounted product. Customers enjoy the satisfaction of getting the item for less and the brand sees an increase in sales as a result. Offers and discounts have also been shown to motivate new customers to make their first purchase.
The Benefits of Discount Pricing for E-Commerce
We’ve already mentioned that the right discount pricing is great news for eCommerce sales. In addition to increasing conversions, an effective discount pricing strategy can bring a host of other benefits. Let’s look at these in more detail.
Increased conversions
As we mentioned, one of the main exploring the power of meme reasons to apply discounts is to increase online conversion rates. When customers see an offer, discount, sale, promotion (however you want to phrase it), they see savings. The promise of an offer is enough to entice more shoppers to convert.
Customer acquisition increased
Another positive side effect of discounting is acquisition. As prices drop, more customers come on board. Flash sales and offers are a very effective way to attract new customers to your brand and get those first sales (and you might just gain some long-term, loyal customers in the process).
Improve customer retention
Discounts are more than just a way to bzb directory grab the attention of newbies. Personalized, targeted discounts give brands a way to nurture and reward their most loyal customers. Offering unique discounts to existing customers will make them feel valued and encourage repeat purchases.
Balance loss
Sometimes brands have products that are hard to move. Maybe a particular item is taking up too much space in the warehouse and needs to be moved. This is quite common. Putting these products on sale means customers can get a deal and you can balance out any potential losses from all that slow-moving stock.
