How strikethrough pricing can help boost your sales

Strikethrough pricing is a promotional tool that Amazon offers to sellers. It allows sellers to display the original price of a product alongside the discounted price. This can create a sense of urgency and encourage customers to make a purchase. In this guide, we'll discuss what strikethrough pricing is, how it works, and how you can use it to increase sales on Amazon.

What is strikethrough pricing?

Strikethrough pricing is a promotional tool that Amazon provides to sellers who want to offer discounts on their products. It involves displaying the original price of a product with a strikethrough line and the discounted price next to it. This creates a sense of urgency and encourages customers to make a purchase, as they can see the potential savings they could make.

How does strikethrough pricing work?

When a seller sets a discount price for a product, Amazon will automatically display the original price with a strikethrough line next to the discounted price. This is designed to show customers the difference between the original price and the discounted price, and make them more likely to make a purchase.

However, it's important to note that there are some guidelines that sellers must follow when using strikethrough pricing on Amazon. Sellers must not display the strikethrough price for more than 90 days, and the strikethrough price must be the most recent price at which the product was sold on Amazon.

How can you use strikethrough pricing to increase sales on Amazon?

Here are some tips on how to use strikethrough pricing effectively to increase sales on Amazon:

1. Set a realistic discount: It's important to offer a discount that is realistic and beneficial to customers, but also one that doesn't hurt your bottom line. Calculate your profit margins to determine how much of a discount you can afford to offer, and set the discount price accordingly.
2. Offer limited-time discounts: To create a sense of urgency, you can offer limited-time discounts using strikethrough pricing. This can encourage customers to make a purchase sooner rather than later, increasing your sales.
3. Bundle products: You can use strikethrough pricing to offer discounts on bundles of products. This can encourage customers to buy more products, increasing your sales and revenue.
4. Promote your discounts: Once you've set your strikethrough pricing discounts, promote them on your product listings, social media channels, and email marketing campaigns. This can help increase visibility and drive sales.
5. Monitor your sales: Keep an eye on your sales after implementing strikethrough pricing discounts to see how they are affecting your revenue and profitability. You can adjust your discounts as needed to optimize your sales strategy.

In conclusion, strikethrough pricing is a powerful promotional tool that Amazon offers to sellers. By displaying the original price with a strikethrough line next to the discounted price, you can create a sense of urgency and encourage customers to make a purchase. However, it's important to follow Amazon's guidelines and set realistic discounts to avoid hurting your bottom line. Use these tips to effectively use strikethrough pricing to increase sales on Amazon.

Let's look at an example

Let's say you're a seller on Amazon, and you have a product that you usually sell for $50. You want to increase sales for this product, so you decide to offer a discount using strikethrough pricing. After calculating your profit margins, you determine that you can afford to offer a discount of 20%.

To set up the strikethrough pricing, you would go to the product's listing in your seller account and enter the new discounted price of $40. Amazon will automatically display the original price of $50 with a strikethrough line next to the discounted price. This will show customers the potential savings they could make and create a sense of urgency to make a purchase.

To promote this discount, you can add a call-to-action on your product listing, such as "Limited-time offer: Save 20% with strikethrough pricing!" You can also promote the discount on your social media channels and email marketing campaigns to increase visibility and drive sales.

After implementing the discount, you should monitor your sales to see how they are affecting your revenue and profitability. If you find that the discount is not driving enough sales, you may want to adjust the discount amount or try different promotional strategies.

By using strikethrough pricing effectively, you can increase sales for your products on Amazon without hurting your bottom line.

Let's look at another example

Let's say you're a seller on Amazon and you have a product that usually sells for $100. You have noticed that your sales have been slow for this product, and you want to increase your revenue without hurting your profit margins.

To do this, you decide to create a bundle of products and offer a discount using strikethrough pricing. You bundle the original product with a complementary product that costs $50. You decide to offer a discount of 30% on the bundle, bringing the price down to $105 (the original product + the complementary product with the discount applied).

To set up the strikethrough pricing, you would go to the product listing in your seller account and enter the new discounted price of $105. Amazon will automatically display the original price of $150 ($100 for the original product + $50 for the complementary product) with a strikethrough line next to the discounted price. This will show customers the potential savings they could make and create a sense of urgency to make a purchase.

To promote this discount, you can add a call-to-action on your product listing, such as "Limited-time offer: Save 30% on this bundle with strikethrough pricing!" You can also promote the discount on your social media channels and email marketing campaigns to increase visibility and drive sales.

After implementing the discount, you should monitor your sales to see how they are affecting your revenue and profitability. You may find that the bundle discount is driving more sales and revenue than selling the products separately, and that the 30% discount is still allowing you to maintain your profit margins.

If you find that the discount is not driving enough sales, you may want to adjust the discount amount or try different promotional strategies. However, by using strikethrough pricing to offer a bundle discount, you can increase sales for your products on Amazon and create a more enticing offer for your customers.

How impactful is this strategy?

The success of this method depends on various factors, such as the product, the discount amount, and the promotional strategies used to promote the offer. However, bundle discounts with strikethrough pricing can be an effective way to increase sales and revenue for Amazon sellers, as it creates a sense of value for customers and encourages them to make a purchase.

There are numerous examples of successful implementation of strikethrough pricing on Amazon. For instance, during Amazon Prime Day in 2021, Amazon offered various products with strikethrough pricing, including electronics, clothing, and home goods. The strikethrough pricing helped to highlight the discounted prices, which resulted in increased sales for many sellers.

Furthermore, according to Amazon's Best Practices for Product Detail Pages, using strikethrough pricing can lead to increased sales for sellers. Amazon notes that "offering a discount on a product can create a sense of urgency for customers and encourage them to make a purchase." Additionally, "strikethrough pricing is a clear visual indicator of a discount, which can help customers quickly understand the value of the product."

In a nutshell, the use of strikethrough pricing on Amazon can be successful in increasing sales and revenue for sellers, as long as the discount is set at an appropriate level and effective promotional strategies are employed.