Price discounting is one of the oldest tricks in retail. Since time immemorial, shoppers have found it hard to resist a bargain, and that includes the opportunity to buy products for less than their advertised price.

It is a rare retailer – often in the upper echelons of the luxury market – who declines to take advantage of discounts. After all, getting a shopper to your store in the first place can be expensive. The ROI is often improved by selling a product for a little less if you can sell it right now.

Thinking About Price Discounts

There are really only a couple of considerations when setting up a price discount: how much of a discount and what will trigger it? The “how much” can be a percentage, an absolute value, or a free product. Triggers are diverse and might include the volume of products purchased, specific product categories, or customer behavior.

Four Price Discounting Strategies To Increase eCommerce Sales
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Price discounting is a powerful selling tool, but it can have negative consequences for a business if it isn’t handled properly.

Make sure the discount doesn’t leave the business in the red on a sale. For example, take care not to offer free shipping on a product that will cost more to ship than the discounted price – you’d be surprised how often that happens.

Excessive price discounting can damage a brand’s reputation. Apple rarely discounts its products: it wants to maintain a reputation as a retailer that sells premium products at premium prices. That brand image is worth more than a few extra discount-driven sales. Think about the impression you want you to make and who your ideal customers are before putting price discounts everywhere.

Priya Kumari : Priya is a writer for TechGnext, joining December 2018, based out of New Delhi. Priya covers mobile, digital media, advertising and the spaces where these intersect. When it comes to work, she feels most comfortable speaking in Hindi but can also speak English.