How Discounts Are a crucial Strategy in Online Merchandising


It is possible to describe discounts as marketing tools that assist drawing customers to your company by allowing them money savings on buying certain products or multiple products and form an essential strategy for online merchandising of items and marketers often use them for introducing new items and retaining old customers, thus enhancing revenue.

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Liquidating Surplus Stocks

They normally use discounts to push sales of chosen products through customers who fulfill certain set conditions. For instance, you might have a couple of items occupying your shelves, since they did not sell to expectations. You could offer special reduced prices to trade those items. For example, consider you huge pile of t-shirts did not sell during December. You will get rid of this surplus stock by providing substantial reductions for a small period to a specific class of customers.

Discount Types

• Plain discount: You can offer the chosen product at reduced prices like a percentage of the listed price or straightway with regards to dollars. Here is an illustration; buy one shirt and acquire 25% discount on the start-up price.

• Least Buying discount: You may choose to offer discount to clients who purchase a minimum specified quantity. An example; on purchasing two shirts get 20% off for the shirts.

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• Buy One Give One Free: Give a gift on investing in a least quantity. For example, on buying one shirt, have the second one free.

• Paired Discount: Give you a discount on a particular product on buying another specified product. If you purchase one shirt, pay 10 dollars less on jeans.

• Paired Set Discount. Propose a rebate on one item for getting specified quantities of another product. For instance, buy two pants and obtain 30% discount on a couple of jeans.

• Order discount: Give a reduction in prices or offer shipping without charge on the total worth of the order on buying goods worth the absolute minimum specified amount. For instance, on buying goods worth $100, have a 10 percent discount on total billing.

Pricing Policy

Locate a pricing policy which enables meeting sales objectives while gaining better reputation, providing the most profit, and developing a good demand for the products. This policy of offering discounts certainly helps attracting clients however for short terms only. If applied to a long-term basis, this policy influences brand loyalty and market positioning negatively.

Great deals enable businesses to offer large volumes of low-priced items. On choosing to follow this strategy, it can be imperative to cut prices and turn into competitive. Larger stores can demand quantity discounts from manufacturers and effectively design their pricing strategy.

Use discount on list prices carefully and infrequently. It helps to offer occasional reductions to regular clients. If offered too often,they may set a spiral of the best prices, making it rather challenging for you to sell goods at normal prices.

Advantages and disadvantages of Discount Pricing

Discounts offer an excellent opportunity to keep customer loyalty, especially when you consider the rewards to employees, repeat and volume customers. This discount policy, when placed onto a short-term basis enables the company to sell more units during this time period, accounting for a transitory revenue boost and critical inventory reduction.

Before you decide upon your discount pricing strategy, you'd do well to consider product positioning too. Sometimes, where the product doesn't have an accredited brand name, consumers may read a minimal price in perceived consonance with lower quality. Such customers may decide to go in for a branded quality product over price.