If you manage an online store, you’ve probably felt the need to run more promotions. Launching an ecommerce sale can be daunting, especially when juggling discounts, deadlines, and digital tools.
The good news? With the right strategy, you can execute an effective and manageable ecommerce sale.
Essentially, an ecommerce sale is like any other, with an added layer of technology. The discount code must function, sales prices should be visible, and customers need to be aware of the sale.
Let’s explore how to make this happen!
Offering online deals and discounts is about more than a quick revenue boost. Understanding these benefits will guide your sales planning process and help avoid pitfalls that can upset customers or shrink profit margins.
Sales attract new customers and leads
Ecommerce sales can help your store stand out and attract new customers from your target audience. You want to find customers who love your products and return, outnumbering those only interested in the deal. A well-planned campaign can achieve both.
Sales delight existing customers
Use ecommerce sales to reward existing customers. It’s easier to sell to existing customers than attract new ones, and occasional sales increase loyalty and improve the customer experience.
Sales increase revenue
Increasing ecommerce sales helps your business grow. While revenue is distinct from profits, it’s where profits begin. A sale can boost revenue, even if profit-per-item decreases. Selling more items at a lower profit can justify reduced profit margins, and a well-designed sale may even increase profits.
Sales reduce inventory
A well-planned sale can help move products and reduce inventory, increasing cash flow and providing momentum.
Sales help outpace the competition
Running a new discount campaign can differentiate your store from competitors and attract new customers, turning them into repeat buyers.
While ecommerce sales have many benefits, there are risks to consider. Knowing these helps avoid them, and we’ll share strategies to do that in the next section.
It becomes a race to the bottom
Kmart’s closure in 2024 is a reminder that price wars are hard to win. We’ll discuss avoiding this risk shortly.
It conditions customers to expect discounts
Some companies run so many sales that customers expect them. You want your sales to be events, not routines, surprising and delighting customers.
It erodes profits
Frequent sales can cut into profits, making it hard to increase profits later unless you get creative with pricing.
It devalues products and services
Over-discounting can suggest lower product value. If your products are high quality, customers will pay more. Constant discounts undermine this perception.
Let’s explore sales approaches to reduce risks and benefit your online business.
Run ecommerce sales selectively
Counter the risks by running selective sales like:
- Holiday sales: People expect them, so you’re not conditioning anyone
- Limited time sales: Last a few days or weeks
- Product-specific sales: Clear out items or put popular items on sale
- Audience segment-specific sales: Target demographics based on interest, age, occupation, etc.
- Personalized sales: Make customers feel special
Have a reason for the sale
Have a reason for your sale, even if it’s unique to the moment. Inventory sales work well: “Our warehouse is overstocked, so we’re having a sale on this category only. When they’re gone, they’re gone!”
Get creative with sale reasons. One business pretended their secretary ran a sale while the owner was on vacation. Here are more examples:
- The owner’s kid is graduating, and you want to throw a big party.
- Someone was nice to you, and you want to pay it forward.
- Your favorite sports team won, and you want to celebrate.
- You got a great deal on packaging supplies and are passing the savings on.
Design sales to increase average order value
Restrict sales to situations requiring customers to spend more for a discount. For example, offer free shipping for orders above $100. This approach maintains profits while enhancing customer experience.
