Do You Think E-commerce Discounts are Harmful in the Long Run?
You want to make more profits, and you give discounts to lure shoppers. Discounting is essentially a short-term solution to attract, incentivize or revive sales, but they start being bad for business when they become too frequent, to the point they become predictable.
Though it’s a widely adopted trend brought by ecommerce marketplaces, what if we tell you a discount isn’t the only way to gain more orders? Yes, you read it right! Builderfly ecommerce can help you increase your net sales & average order value without offering heavy discounts only!
Learn With Builderfly How to Overcome the challenges posed by predictable discounting
Cart abandonment
Customers often abandon carts while shopping online to get discount coupons to shop the products at discounted rates. Some shoppers make it a habit to abandon carts for discounts which is not a healthy practice to manage your margins. By conducting email campaigns using Builderfly’s marketing tools, you can personalize your connections and save cart abandonment rather than pushing coupons every time.
Lower orders till sales period
Serving the community of shoppers for years, we often heard about a sudden reduction in orders count before the sales period. Customers often wait for discount deals in the coming sale rather than for new product launches. In such cases, you can use blogs and other promotional tactics to motivate your customers to shop instantly from your Builderfly store.
Losing shopper’s confidence
Those of your buyers purchase similar products from you at the original stated price and lose the confidence of shopping from you when you sell at huge discounted rates. You lose the trust of quality and all other selling prepositions you’ve used earlier to sell your products.
Damages your brand reputation
Along with the deteriorated confidence of customers, you attract the reputation of selling cheap goods and not quality deals in the market. You can repair your brand’s reputation with Builderfly maintaining your product’s information and strengthening your customers’ association with personalized email communications.
Alternatives to heavy discounts you can apply to your Builderfly store
Free Shipping
It's not just consumers that love free shipping; 60% of eCommerce sites cite "free shipping with conditions" as their most successful marketing tool! You can set a minimum budget cap for free shipping or enable regional free shipping to gain better conversions and save on heavy discounting.
Give Freebies/Free gifts
Free gifts often present themselves as much better-perceived value to customers than a discount. Show your customers the retail value of the gift they'll receive. The retail value is likely not what you paid as a merchant, but from a customer's perspective, it helps increase the desirability of the product and your generosity as a brand.
Start a loyalty program
Reward your loyal customers not with cash but with the reward points that they deserve for long-term association with your business. One popular method of implementing a loyalty program is through the issuing of points for purchases made. These points make a good incentive for return patronage, as customers will want a reason to redeem points earned.
Referrals with values
Instead of simply giving away a discount to make a sale, think of ways that you can use discounts to incentivize desirable behavior. Like rewarding customers when they refer a friend, provide a product review, or share your products on social media. Rewarding desirable behavior through incentives is mutually beneficial for all parties involved.
Maintain a balance between discounts & your value proposition with Builderfly
Being an ecommerce platform, Builderfly has the options enabled for merchants to create special offers, add coupon codes, and launch deals. We support businesses to promote their values over discount deals and grab the attention of your shoppers.
Build Your Online Store for FreeFAQs
Do discounts destroy ecommerce business?
Not exactly! Like every business, discounts are favorable to win customers’ attention. However, they can be favorable for you to make profits only when you maintain balance between discounts and margins.
What is a good discount percentage?
A good discount percentage can be 20-30%, where you wave off 20-30% of your profits while selling. Lowering the product margins than this can badly impact your margins and net ROI of your business.
How can you thrive against competitors without heavy discounting?
If you justify your product pricing well with apt reasons like highlighting product quality, material, comparable attributes, you can thrive against competitors without major discounting.
Is there a way to change shoppers’ mindsets about discounts while shopping?
When you highlight the product attributes and give easy product comparisons, you help shoppers make a buying decision. With this approach you can convince shoppers to buy quality products over discount deals.
