Key Points to Note When Setting Discounts for Shopee Store

What to Keep in Mind When Setting Discounts for Shopee Stores

When opening an online store and selling products on e-commerce platforms like Shopee, discount promotions are an effective marketing tool. They can not only attract more consumers to pay attention to your products but also increase the store's visibility and sales volume. However, there are some key points to keep in mind when setting these discounts; otherwise, they may have the opposite effect.

Firstly, it is crucial to plan the discount rate reasonably. According to recent news reports, many merchants tend to offer overly generous discounts when launching promotional activities, hoping to quickly boost sales. In reality, this approach isn't always wise. Excessive discounts can compress profit margins to extremely low levels or even result in losses, which is detrimental to the long-term development of the store. When setting discounts, one should take into account costs, market positioning, and competitors' situations to ensure both attracting customers and maintaining reasonable profitability. For instance, experienced sellers suggest that generally, a discount rate between 20% and 30% is appropriate, as it provides customers with a sense of value without placing undue pressure on the business.

Secondly, timing is another important factor affecting the effectiveness of discounts. The news mentioned that some merchants prefer to frequently launch large-scale promotional activities during holidays or special periods, believing it maximizes the holiday effect. However, such strategies don't always work. Over-reliance on holiday promotions can lead to consumer fatigue and diminish brand uniqueness and appeal. Instead, choosing a suitable time within the business cycle to conduct targeted small-scale promotional activities can yield better results. For example, for seasonal products, initiating clearance sales a few days before the season change tends to be more effective; whereas for everyday consumer goods, minor price reductions during off-peak seasons can stimulate purchasing desires.

Additionally, carefully selecting the product categories involved in the discounts deserves careful consideration. Observations from the industry indicate that products with high cost-performance ratios and high repurchase rates are more likely to attract consumer interest. This means that when formulating discount plans, priority should be given to including such products. At the same time, trying to enhance added value by offering combo packages is recommended, such as bundling popular items with complementary accessories. This approach not only reduces the cost burden per item but also meets the needs of different customer tiers, thereby expanding potential market share further.

Lastly, but equally importantly, ensuring good after-sales service support must not be overlooked. Even though the discount itself is already appealing, poor subsequent service quality can still leave customers dissatisfied. Before initiating any promotional activity, merchants should prepare adequately, including enhancing customer service team training and improving return and exchange procedures. Only when the entire shopping experience is smooth and satisfactory can true win-win outcomes be achieved-enhancing brand image while winning more loyal fans.

In summary, although conducting discount activities in Shopee stores brings significant benefits, it also carries certain risks. By following these principles and adjusting strategies flexibly based on actual circumstances, the maximum value of discount activities can be realized, creating greater commercial value for the store.