What is a Discount Strategy?

A discount is a pricing strategy where a product seller sells his products at a cut price.

The discount isn’t only limited to pricing, though. Sellers offer discounts not only on the pricing but also on the products as well.

That’s why a discount is always an attractive deal both for product sellers and buyers.

Why Should You Have an E-commerce Discount Strategy?

• A fast, effective and proven method to close sales.
• Activate securing learning to attract and motivate customers to buy your products.
• Sell excess products that occupy your inventory.
• Increase the chance of stocking new products by finish the old ones.
• Chance of boosting more than 2x sales within a certain period.
• collect more corner-related new clients.
• Turn regular customers into long-term loyal clients

1. Buy one, Get One 

Buy One Get One or BOGO is one of the most popular concepts. This isn’t directly a pricing discount and promotion strategy, but this helps augment e-commerce sales.

2. First-time Shopper Discounts  

Many retailers offer new customers a discount as a means to attract and acquire new customers.

New customers generally aren’t ready to buy right away; they tend to check several products to compare and come up with the best one that addresses their problems

3. Flash Sales and Limited-Time Offers 

Flash sales are an insanely B-I-G discount that is offered on products for a short period of time (starting from a couple of hours). This helps attract buyers and persuade them to buy in a large amount.

4. Membership Discounts 

Membership discount is a special custom pricing offer. When a retailer allows membership, the buyers expect that the members will get more advantages than the regular buyers. So, many buyers feel the urge to register for the premium level.

Retailers attract more members into their stores by allowing membership discounts. You can choose various types of discounting methods on different products and choose groups or certain people to receive that, not necessarily one for all.

5. Loyalty Discounts 

A loyalty discount is a discount strategy when businesses offer it to their loyal customers at a lower price than the market.

Offering this type of discount will help you to retain the regular customers your business is currently having, maintain the strategic relationship with them and discourage them from switching elsewhere.

6. Promotional Discounts 

This is a sales strategy rather than a pricing strategy, where retailers minimize the cost of a product for a short time to attract more people and convince them to buy more.

It can include a cut price, multiple purchases, combo deals, coupon codes, referrals, cashback etc. This method works well because retailers boost the product’s demand by creating a scarcity scenario. As a result, customers stock the product, during which the price is reduced

A promotional discount is a temporary price reduction used to attract more customers and boost sales. It’s often offered during special events, holidays, or product launches. Customers get to save money, and businesses get more attention and sales during the promotion.

7. Bulk Discount 

Bulk discount is the one that retailers and e-commerce businesses mostly use. It is also interchangeable with volume discounts A bulk discount is a price reduction given to customers who buy large quantities of a product at once. The more you buy, the less you pay per item. It encourages bigger purchases and helps sellers move more stock quickly.

8. Free Shipping offers

To offer a satisfactory purchasing experience to the buyer, you can add a sense of comfort, which is offering ‘free shipping’ or ‘free delivery’ as your strategy of discount.

Having free shipping or delivery removes the hassle of shipping or transportation costs and the method of the buyers, and as a result, it encourages more buyers to click the ‘Add to Cart’ button and not abandon it.

9. Provide Pre-Order Discounts

Pre-order discount is the discount strategy where buyers pay for the pricing even before the product is in stock. A pre-order discount is a special lower price offered to customers who buy a product before it is officially released. It encourages people to order early and helps the seller know how much demand there will be. Customers get the benefit of saving money and being among the first to receive the product.

10. Quicker Payment Discount 

Quicker payment discount or early payment discount is a payment discount method where retailers deduct an amount from the buyer’s payment in exchange they pay earlier than the scheduled time.

This strategy is most evident in B2B businesses so that they can collect the cash as soon as possible and eliminate any payment-related risks and maintain good relationships and business deals while ensuring smooth transactions.

Name

Email