As an eCommerce retailer, you know how important it is to stand out from the competition and attract customers. One of the best ways to do this is through discounts. Offering discounts can be a powerful tool in boosting sales and increasing customer loyalty.
That’s why it’s important to have a competitive edge—especially when it comes to discount strategies. Discount strategies can be the difference between success and failure for your eCommerce business.
Offering discounts is a great way to keep customers coming back, but if done incorrectly it can result in lost profits. So let’s take a look at some of the best discount strategies for eCommerce retailers.
Types of Discounts
There are many different types of discounts that can be offered at an eCommerce store, but some of the most popular options include offering free shipping, percentage discounts on orders over a certain amount, dollar-off coupons, buy-one-get-one (BOGO) deals, or loyalty program rewards.
Each type of discount has its own advantages and disadvantages so it’s important to pick the one that works best for your business model. For example, if you have a lot of repeat customers then offering loyalty rewards might be a good option as it encourages customers to keep coming back for more.
On the other hand, if you’re looking for ways to attract new customers then offering BOGO deals might be a better option since they are more likely to grab people’s attention.
5 Best Discount Strategies for eCommerce Retailers
If you are using WordPress as your platform for creating an online store, you have plenty of tools and plugins available to help you create unique and effective discount strategies. Here are some tips on how to maximize your discounts with WordPress:
One of the most popular discount strategies is offering coupon codes. Coupon codes allow customers to enter a code during checkout in order to receive a discount on their purchase.
This can be as simple as offering a percentage off the total purchase price or something more complex like offering free shipping for orders over a certain amount. WordPress makes it easy to create and manage coupon codes right from within your dashboard, allowing you to customize them according to your needs.
Creating time-sensitive offers is another great way to spark interest in your products or services.
For example, you could offer a limited-time promotional sale on select items or offer free shipping for orders over a certain amount during the holidays. You can easily set up these time-sensitive discounts within WordPress and have them automatically expire when the promotion ends.
Discount tiers are another great strategy for encouraging larger purchases from customers by offering progressively larger discounts as they add more items to their cart.
For example, you could offer 10% off orders of two items, 15% off orders of three items, 20% off orders of four items, etc. This type of tiered discount structure can help encourage customers to buy more in order maximize their savings potential while helping increase average order value at the same time.
One of the most popular forms of discounts are percentage-based discounts. These are usually used in conjunction with other promotional activities such as coupons or email campaigns. Percentage-based discounts allow retailers to quickly and easily adjust their prices according to customer demand, without having to manually enter each discounted item into the system.
This type of discount also works well when combined with other promotions such as free shipping or buy one get one offers. When using percentage-based discounts, make sure that you keep track of how much money each customer saves so that you can gauge the success of your campaign.
Fixed Price Discounts
Fixed price discounts are another popular option among eCommerce retailers. These types of discounts allow customers to save a certain amount off their purchase price regardless of how much they spend.
Fixed price discounts work well when offering large purchases such as furniture or electronics because customers know exactly how much they will save regardless of how much they spend on the items. It’s important to note that fixed price discounts should not be used in combination with other promotions since they won’t provide any additional savings beyond what was already offered before the promotion began.
Other Popular Discount Strategies
Here are some popular discount strategies that have been proven effective:
1) Loyalty Programs – Loyalty programs reward customers for making repeat purchases from your store. This encourages customers to return in the future, increasing the lifetime value of each customer and boosting sales in the short-term as well. You can also offer special loyalty rewards such as free gifts or exclusive discounts.
2) Bulk Discounts – Bulk discounts offer additional savings when customers buy more than one item at a time. This encourages customers to purchase multiple products, which increases their average order value and boosts overall sales without reducing profit margins too drastically.
3) Limited-Time Offers – Limited-time offers create a sense of urgency that encourages customers to purchase before the offer expires. You can use limited-time offers to clear out excess inventory or drive additional sales during slower periods of the year.
4) Referral Programs – Referral programs reward customers who refer their friends and family who end up making a purchase from your store. This encourages word of mouth marketing, which can be an effective way to attract new customers and boost sales at no additional cost.
5) Free Shipping – Free shipping is one of the most popular ways for online stores to entice customers, especially if you’re selling items that are heavy or bulky such as furniture, appliances, etc., where shipping costs can quickly add up. Offering free shipping on all orders over a certain amount can be an effective way to increase average order values while still keeping margins intact.
Discounts are essential when it comes to running an eCommerce business today – they provide incentive for customers who may otherwise not shop at your store due to higher prices than competitors, they help boost customer loyalty by giving them something back in return for their purchases and they give potential new shoppers an opportunity to try out what you have without having to pay full price upfront!
By utilizing some of these strategies listed above, you should be able to increase both traffic and sales at your store.