“50% off - Black Friday Special”
“Extra 20% off on select products”
“Buy one and get one at 50% off”
Who doesn’t love a good discount offer? Present the right offer to the right set of audience, and Voilà - witness the selling frenzy unfold this BFCM!!!
Get more by paying less – the vast majority of online customers live by this motto. And finding the best discount offer for products on their wishlist is like a treasure hunt for them, especially during the BFCM weekend. They are relentless, patient, and are often brutal and willing to toss brand loyalty out through the window if they find a good discount offer for their favorite product somewhere else.
But what does that mean for the sellers? How do you provide your customers with the best discounts without having to worry about your margins? How can you sell more and earn more?
Offering discounts for your products during a high octane sale like BFCM is tricky; you should know about the customers and their expectations without disrupting your revenue stream. You should also be wary of the fact that there is a common suspicion that offering discount means that the normal prices are too high, which might affect your normal sales once BFCM gets over.
So, it is vital to understand how discounts work and the different ways you can offer them in this upcoming holiday sale without worrying about your bottom line.
They are a relatively straightforward type of discount that you can offer to the customer. It can generate a higher perceived value among most customers as they feel they are getting free money rather than saving it. This psychological effect created by cash discounts results in a higher conversion rate, which is quite important during a competitive sale period like BFCM.
You can also make cash discounts static or dynamic. Most eCommerce businesses opt for the latter and make their discounts dependent on how much the customer spends. For example, you can offer the customer 10$ off for a purchase of 100$ or above and 20$ off for a purchase of 150$ and above. This strategy will help encourage the customer to purchase more products to receive a bigger discount during the BFCM weekend.
Percentage discounts are perfect for clearing out your inventory or triggering your customers’ curiosity. Traditionally, eCommerce businesses opt for a combination of both percentage and dollar value discounts, which will result in the most perceived value for the customers.
By keeping a threshold value of, let’s say, 100$, you can offer percentage discounts for any purchases below 100$. And for purchases above 100$, you can provide dollar value discounts. It can also be offered for individual products or an entire order due to its flexibility while giving you control over the margins.
A popular way to offer percentage discounts is through coupon codes. Vajro lets you add a coupon code for your store in just three simple steps. Here is how you do it in your dashboard.
BOGO stands for “Buy One, Get One.” As the name suggests, you can offer the customer a free product with this type of discount once they complete a specific type of purchase. For example, “Buy a shirt, get another shirt for free”. BOGO can also be in combination with cash discounts and percentage discounts. For example, “Buy one, get one at 50%” is a type of BOGO discount. Similarly “Buy two tops at full price and get 10$ off for the third one” is also a BOGO discount.
This discount format will have a strong psychological effect on your customers, and they are often encouraged to buy additional items or spend more than they may have originally intended during the BFCM weekend.
Shipping is an integral part eCommerce business. Once the customer places the order, your logistics team will pick up the product from the warehouse and deliver it to the customer. And you will add an additional charge to the total bill as a shipping charge to cover your losses in this whole process.
But things are a little different during the BFCM sale. Customers from different regions will visit your online store with a substantial interest in purchasing the product. But they will be put off when they see the high shipping charges that they might incur with the purchase. They will end up switching to your competitors who might be offering free shipping.
In a high-volume sale like BFCM, the cost you might incur for shipping will be negligible as multiple products will be shipped at the same time. You can negotiate a good price with the logistics partner and transfer the margins to the customers in the form of free shipping.
Even though many retailers have started providing free shipment options more consistently, using it as a limited-time discount option during BFCM is a great strategy to reap incredible rewards. Some businesses use a minimum purchase value to activate the free shipping discount, thereby increasing their average order value.
If you are running an online store, you should understand that you can benefit immensely from a strategically implemented discount offer. It can help drive organic traffic to your website or mobile app, acquire new customers, and increase online sales and revenue. So, it is important to know how these promotional offers work as customers have started becoming smarter while searching for the best deals.
At Vajro, we are committed to helping you develop the perfect app for your online store and provide your customers with a truly one-of-a-kind shopping experience filled with attractive promotional deals and discount offers.
Our instant app factory will deliver your dream app within a short period, thereby eliminating the need for multiple developers and long development cycles.
Want to know more about Vajro? Contact us now.