6 Ways To Offer Black Friday Discounts While Maintaining Profits
Black Friday is a big deal for all e-commerce companies since it’s one of the most profitable sales days of the year. It saw an annual growth of 23.6 percent, with online sales bringing in $6.2 billion in 2018. Moreover, Cyber Monday online sales grew by 14 percent in 2018, earning $7.75 billion.
Discounting is now inherent, and a part of the buying culture as research shows that price was the determining factor for the Black Friday holiday season purchases for 70 percent of buyers. So, it’s very important to have a discount strategy for Black Friday and beyond. E-commerce businesses can achieve this without sacrificing their profits. Here’s how:
- Members Only
E-commerce companies can create a Black Friday member-only discount to loyal members to boost sales during Black Friday. This will not only entice loyal customers to buy more, but also attract more casual buyers to sign-up for membership.
- Bundles or “Buy One Get One” Deals
Online stores can also bundle products and give “Buy One Get One Free” offers to attract customers and motivate them to buy more of their products. For instance, they create a Black Friday holiday bundle package that includes three products for a lower price than individual products that customers buy separately.
- Click-to-See Discounts
Revealing discounts only after potential buyers click on the promo is beneficial for increasing profitability. These “click-and-see” discounts allow online stores to capture unsure yet motivated buyers.
- For Your Eyes Only Discounts
Exclusive discounts used with targeting or for first-time site visitors can also help drive sales and even increase email subscriptions to encourage future purchases. For example, e-commerce companies can offer a deal on the first purchase when customers sign up for their email newsletter.
- App-Exclusive Discounts
Including discounts for customers who also use a company’s mobile app or mobile-enabled website helps drive profitability during Black Friday and Cyber Monday. This also ensures their business in the future as they continue to use the app.
- Pay to Play Discounts
“Pay to Play” discounts allows online stores to charge brands to pay more for homepage or above-the-fold visibility on their e-commerce site. This discount strategy is advantageous for e-commerce companies that support multiple brands.
Implementing these strategies, as well as others, will help drive your sales up this Black Friday and holiday season, without sacrificing profitability. Test out different discounts and offers to find the best ones that motivate sales, and ensure being part of the annual sales growth seen during this time of year!