{"id":13054,"date":"2020-04-22T14:21:38","date_gmt":"2020-04-22T19:21:38","guid":{"rendered":"https:\/\/www.invespcro.com\/blog\/?p=13054"},"modified":"2024-05-03T22:03:46","modified_gmt":"2024-05-03T22:03:46","slug":"ecommerce-discount-pricing-strategies","status":"publish","type":"post","link":"https:\/\/www.invespcro.com\/blog\/ecommerce-discount-pricing-strategies\/","title":{"rendered":"11 E-Commerce Discount Pricing Strategies That Will Increase Conversion Rate of Your e-Commerce Website"},"content":{"rendered":"Reading Time: <\/span> 12<\/span> minutes<\/span><\/span>

Discount pricing, done correctly, can help you gain and retain loyal customers in both good and bad times.<\/p>\n

But when executed poorly, it can program your customers to only make a purchase when a product is on discount. And that, obviously, diminishes your brand value.<\/p>\n

So what is the difference between a discount pricing done correctly and one that is handled incorrectly?<\/p>\n

Well, the answer is simple: it\u2019s all in the strategies and tactics you choose to deploy.<\/p>\n

We have already discussed discount strategies in the previous article and indicated how you should align your strategy to your brand. In that same article \u2013 Staying on Brand with Discounts and Promotions<\/a> \u2013 we also offered advice on how to come up with promotion strategies that will differentiate your brand position from other competitors.<\/p>\n

Going in blindly without being tactical can paint a picture of a business that isn\u2019t confident in its product value. When pitching a discount to close a deal, the strategies and tactics you use are usually more important than how much the discount is.<\/p>\n

This article will walk you through 11 eCommerce discount pricing strategies and tactics that will increase the conversion rate of your eCommerce websites<\/a>. But before we delve into that, let\u2019s begin by looking at what experienced eCommerce folks think of discount pricing strategies.<\/p>\n

Meaningful discount pricing strategies from experts<\/b><\/h3>\n

Offering discounts to customers<\/a> isn\u2019t a new pricing strategy by any stretch. But it\u2019s still as effective as ever. Before you slash down your prices, hear what savvy eCommerce marketers have to say about discount tactics.<\/p>\n

Rishi says that discounts can earn you conversions:<\/p>\n

\"Rishi<\/p>\n

Rishi Rawat<\/a> \u2013 Frictionless Commerce Founder<\/h4>\n

Price elasticity states as price go down demand goes up.<\/p>\n

This is true with discounting too. Discounts lead to better conversions. To a point.<\/p>\n

A full price item discounted 20% should see around 20% bump in sales.<\/p>\n

Increase discount by another 20% (on top of the original 20%) and expect to see a corresponding ~20% lift.<\/p>\n

But this logic doesn’t continue for deep discounting.<\/p>\n

Why? Because psychology starts shifting. With deep discounting, you will notice a plateauing effect. Beyond a point, the discount doesn’t translate to better sales. Most marketers just accept their fate. But there is a solution to this. Explained below.<\/p>\n

First, let’s understand what’s going on:<\/p>\n

Consumers are used to seeing a 20% discount so a 20% discount is an extra nudge.<\/p>\n

We’re not used to seeing 80% discounts. So when we see those some of us start to wonder, “wait, why am I getting this insane discount, what don’t I know?”<\/p>\n

We start considering scenarios:<\/p>\n