An effective Price Discounting strategy will Increase Ecommerce Sales
Offers, Discount, Sales- The most lovable words for the online buyers! Being retailer if you know when and how to roast these words into sales driven results, then, you will become a successful seller and also most popular among the enthusiastic online shoppers.
In online selling, as the customers don’t have the option of bargain or words of mouth to negotiate the price and service and therefore fixed price and discounting make the difference in having the buyer clicks on the products in your online Amazon store.
To gain the attention of the customers, Price discounting is one of the effective and oldest tricks in selling. This not only attracts the customers but also contributes as an effective parameter to improve ROI of the business.
How to decide Price discounts?
To avail your customers with the price discount is profitable in getting more customers but at the same time, you have to think about how much discount should you give which can take you in the win-win situation.
While adding the discounts and offers on the products, you need to consider:
- Original price of The product
- Shipping Charges
- Warehouse Charges
- Number of commodities purchased
- Product Category
- Time Period
Considering all the above factors, you should include a discount percentage on the products. For flattering the customers, you can trigger their enthusiasm by giving them gift vouchers on their next purchase or BOGO or flat percentage (20%, 30%, and more) discount on their purchases. What about cashback?
Different Types Of Discount you can offer-
The basic way for price discounting is simply reducing the price of a commodity. But while talking about the market and its trends, the competitors have gone beyond the simplicity and have found out various ways to allure customers with versatility.
So, here we are telling the four ways which you can include in your Price discounting Strategy. Let’s go in:
In bundling, you can bundle the relevant products for the customers. Bundling includes the one pack for similar items or the items that complete each other. For instance, a person who buys the Jeans can be interested in buying the belt or T-shirt or shirt or top. So you can offer a discount on the massive purchase to the buyers.
Bundling helps in improving AOV, ROI and also helps you in recycling your inventory.
Read: How a Bundle strategy can increase AOV?
While making Bundles and compo pack of the products, you should concentrate on your stock and according to it avail discounts and price reduction. But remember, the pack should include the useful and relevant products for the buyers.
On Amazon, you must have seen the line “Frequently bought together” session on every product page which not only suggests the customers but also increases the chance of getting more buying clicks on the products.
The only thing you need to take care of is exclusively relevant products the customers are searching for them.
2. Discounts on Volume Purchase
BOGO offer i.e. Buy 1 Get 1 free; But 2 and get the third product free or 10% discount on one purchase, 20% on two items and similar discount offer on bulk purchase. Such discounts encourage the buyers to buy more as they would have to pay less. Ultimately, increasing the AOV and ROI of your store. More they will purchase, more will be profit for you.
3. No Shipping Charge
80% of buying decisions get affetced by the price of the item. When the customers find the product in their budget and interest then only they make a confirmed buying decisions else they leave the page. Most of the time, the price of the product seems reasonable to them and they add to their cart. While checkout, the added shipping charge distracts them and contributes to the cart abandonment rate increase.
Here, you need to be wise in making the shipping price strategy and if possible you should favor the buyers with no shipping charges. If your item really needs the shipping charge, you can reduce them for the bulk purchases or adjusting in the product price is the safest way.
In ecommerce selling, reap as you sow can work for the customers as well as for you. When you serve your customers with the best quality services with time efficiency and cost-effective facilities, they will surely be your fan. As a general human tendency, they will use the words of mouth and elaborate and promote your services to their friends and relatives just because they are satisfied with you and want their closed ones the same.
So, offering rewards and incentives for promoting you or bringing more customers to your store will be a good idea. This will not only help in having more customers and sales to your store but also make the existing customers as your long-time buyers.
But, if you are selling on Amazon, then, be careful in giving referrals and incentives. Amazon has its strict guidelines for not bribing the buyers for leaving feedback and comment for the sellers.
The ultimate goal of the price discounting strategy is to bring more customers and increase the profit margins of the ecommerce store. When a customer sees an offer on any product, it encourages him to buy and if everything fits well into his criteria of purchase, he makes the confirmed buying decision. Therefore, implementing the discounts in a versatile way will be helpful for your store.
Evantage offers the effective tactics to improve AOV and sales and works with the sales-boosting strategy for the sellers.
Come to us and increase your graph from zero sales to peak.