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Sales & discounts could affect your eCommerce brand

Sales & discounts could affect your eCommerce brand

The holiday season has passed and it won’t be long before online retailers are removing the sale offers, returning to usual business.

However, an item that had been purchased with x amount off doesn’t mean that there will be a second purchase, and a study has confirmed this – shoppers purchasing in result of a discount are fifty percent less likely to make another purchase.

Again, lower prices, instead of attracting customer loyalty, may be attracting smart shoppers who are just looking for discounted items.

Sales are a consecutive element in modern retail although have constant sales for your brand could be doing more harm than good:

Shoppers are conditioned

Customers will become conditioned to your sales pattern, thus allowing them to play the system.
As an example, if your clearance sale falls at the end of seasons because consistently poor forecasting, they know to wait until then.

They will play the waiting game. Again, if they know your brand to drop prices for sale, word-of-mouth will catch on and people will wait.

Sales could devalue your brand

A recent study found that items that been offered at a discounted price were believed to be a brand’s attempt to offload inventory, customers thought.

The study gave half of the participants an item at a discounted price, and the other for free.
When asked the value of the item, those who received the item for free believed the original price to be higher in comparison to the discounted item, for reasons stated above.

Although that isn’t the intended purpose of the discount, this problem could arise.

Your sales offered should be beneficial for your long-term strategy, and you should find a balance between short-term sales and long-term customers.
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