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Will discount marketing save you from inventory problems?

Happy (almost) weekend!

ICYMI, Instagram has beaten TikTok in terms of converting viewers into buyers. And whether you believe it or not, the latter’s potential ban has nothing to do with it—it’s purely because Meta (IG’s parent company) is more “advertiser-friendly.”

Want to beat your competitors like Instagram? Then, you better read our lineup of advertising and marketing hacks.

BIG IDEA

Whoever invented the concept of discounts (it’s Asa Candler, according to sources) knows what they’re doing. Aside from being a surefire way to attract buyers, they might just be a solution to your inventory woes!

How, you might ask? Here’s Retail Insider’s breakdown of the pros and cons of discount marketing to help you incorporate it into your sales tactics:

But first, what’s discount marketing?

It refers to a business strategy in which you lower the prices of your products to encourage sales. This includes offering price incentives like percentage discounts, fixed-amount discounts, free shipping, bundle deals, and loyalty and referral discounts.

Like all strategies, it comes with benefits and risks:

Benefits

  • Promotes sales. People are sensitive to bargains and deals.
  • Reduces inventory. Excess inventory can be cleared to make way for new products.
  • Boosts cash flow. Though reduced, the income generated from the discount sales can still cover operational costs and advertising.

Risks

  • Lowers profits. This is the most obvious downside of discounting. You buy products only to sell them for less 😢
  • Devalues your brand. Discounting too much or too often will make your brand feel cheap or less valuable
  • Price wars can occur. When you lower prices, other companies may follow leading to more reduced revenue. 

Unsolicited advice: Despite the cons, cutting losses is better than sitting on hard-to-sell inventory

🫵 When should you start using this strategy?

Events like Prime Day are the perfect time for discount marketing. Doing so will hit two birds with one stone: you can clear your seasonal or short-lived trends inventory AND you won’t devalue your brand because buyers do expect big discounts on Prime Day.

TOGETHER WITH REVIEWSCOOP

The secret to outpacing your competition on Amazon

The secret to outpacing your competition on Amazon

No, it's not compelling high-quality photos. It's not just ranking on the first page of the SERPs.

If it's not these factors that people say you should pay utmost attention to, then what is?

We'll let you in on a secret most Amazon sellers don't know–it's high-quality product reviews.

But what if you're new to selling on Amazon and don't have any reviews about your product yet? How will you stand out from your competitors?

ReviewScoop has got you covered!

It's the safest way to get reviews and social proof from genuine testers, fast!

What you'll get:

  • Hassle-free process - just reviews, no headaches
  • High-quality verified product reviews for as low as $199/month
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Use high-quality reviews as leverage against your competitors. Let your products shine with verified product reviews!

Learn more

BITES OF THE WEEK

HOT TOPIC

Why D2C ecommerce is winning over sellers

Why D2C ecommerce is winning over sellers

Discount marketing is not the only strategy that’s gaining traction, According to MyBroadband, direct-to-consumer (D2C) ecommerce is becoming another favorite among entrepreneurs, especially small and medium-sized ones. 🫰

Why D2C? 

For context, ecommerce platforms like Amazon and Walmart have bigger audiences. While this brings various benefits, including increased brand visibility, cost-effectiveness, and consumer trust, small and medium-sized enterprises (SMEs) might find it hard to form close bonds with their target markets.

That’s where the D2C model comes in—to allow a more direct connection between brands and customers. By selling directly to consumers (via their websites or apps) you can:

  • Have complete control over pricing strategies;
  • Be flexible and adaptable to consumer needs;
  • Offer customized products and services; and most importantly
  • Own all your data, which you can use for retargeting, loyalty programs, and upselling opportunities.

🎯 In short, D2C allows you to build a strong brand AND a strong bond with consumers.

Should you go for it?

Definitely!

Studies have shown customers prefer D2C for its ability to personalize customer experiences. Online markets still help with brand visibility, but it's D2C’s authenticity and customization that win over shoppers.

TACTIC TALKS

10 ways to advertise your business in 2024

10 ways to advertise your business in 2024

As sellers, you’re well aware that brand visibility and connecting with shoppers is key to growing your business. That’s why despite the rising costs, advertising remains a main ingredient in ecommerce businesses’ operations.

💡 Many advertising gimmicks have emerged over the years, adapting to changing consumer behaviors. This year, Forbes enumerated 10 business advertising tactics to spread the word about your brand loudly and clearly:

  • Establish a website to give your customers a central hub to view your brand information and updates.
  • Claim your Google Business Profile to enhance your credibility and visibility on Google Maps.
  • Create local listings on third-party platforms frequented by customers, such as Yelp and Bing.
  • Leverage social media and influencers to reach a wider audience and form genuine connections with them.
  • Optimize your SEO. In addition to using relevant keywords in your content, you can start a blog to share unique and valuable information that will engage readers.
  • Share interactive content, such as quizzes, e-books, or infographics. You can also host a webinar or workshop to share knowledge and establish expertise.
  • Get back to basics. If possible, use traditional methods like business cards and magazine ads. Don’t forget to gather feedback through whatever method you plan to use to see if there’s room for improvement.
  • Launch an email campaign to conveniently provide customers with updates, events, and discount promotions.
  • Reward loyalty by offering incentives to loyal customers.
  • Support local through events, sponsorships, and donations.

We can’t stress enough how vital advertising is for establishing a good reputation and maintaining customer interest. And because sharing is caring (for good karma and all), feel free to add more advertising hacks by replying to this email! 📧

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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