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Best Discounting Strategies for Ecommerce Companies

 t might appear at first glance that offering discounts are not the surest way to make your ecommerce business more profitable. Indeed, if you approach discounting without a clearly defined plan, or the tools to evaluate whether it’s working and the wider impact on your business, you might just regret ever attempting a discounting strategy!

However, if used in an appropriate and intelligent way, discounts can be a powerful addition to your ecommerce armoury.






 "Discounting is a strategic issue for any ecommerce business and needs to be approached with the right methodicl mindset."  Aran Reeks

 

You don't need me to tell you that selling online is highly price sensitive so it's essential that you have a clear pricing strategy to start with that includes intelligent and well planned discounting

Some strategies to consider:

1. Firstly, what type of discount?

In reality, there are only three types of discount: 

  • A percentage discount on a product
  • A cash amount discount on a product
  • Selling a product for a fixed, reduced price

It becomes more tricky when you start to think about setting up the discount's conditions:

Will it be something like these for example?

            “spend £50 and get …..........”

            “buy any 2 products  ...........”

            “enter the discount code SUN17 at checkout” ...............

You then need to determine what elements get discounted when the above conditions are met:

Will it be?

     … to get free delivery

    … to get another one free!

    … and get 15% off your entire basket

If your eCommerce platform offers you the ability to control the conditions and application of discounts then you can start to adapt your discounts to produce maximum benefit for your business.

The most popular discount strategies are:

  • Free delivery - a one-off offer or triggered when you spend above a certain amount
  • Specific cash amount discounts
  • % discounts
  • Multi-buy and volume-based discounts - which can also be linked to free delivery
  • Combination offers - buy several items together from a selected range at a special price
  • BOGOF (or variants)
  • A discount on your next shop
  • A free gift above a certain spend

Discounts can be applied to an entire basket or individual items and they can be time-limited. You can also trigger a discounted price on an item when a related product is placed in the basket.

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