What is promotional pricing?

Promotional pricing

In the world of ecommerce and retail, the way a product is priced can make all the difference. One of the most common pricing strategies used by businesses is promotional pricing. This involves offering products at a reduced price for a limited time to increase sales. The strategy can be effective in generating a “hype”, driving traffic to a website or store, and clearing out old inventory.

Promotional pricing in ecommerce and retail

Promotional pricing can take many forms. For example, a business might offer a discount on a specific product, or offer a coupon code that can be redeemed for a discount. Another common promotional pricing strategy is to offer a bundle deal, where multiple products are sold together at a reduced price. This can be a great way to entice customers to buy more items, and to try out new products.

One of the key benefits of promotional pricing is that it can be used to target specific customer segments. For example, a business might offer a discount to first-time customers, or to customers who have been loyal to the brand for a long period of time. This can help to build customer loyalty and to encourage repeat business.

Another important factor to consider with promotional pricing is timing. A business might choose to offer a discount during a slow sales period, such as during the summer months, or around a major holiday. This can help to boost sales and drive traffic to the business during a time when business is typically slower.

While promotional pricing can be a great way to drive sales and boost profits, it’s important to consider the long-term impact of this strategy. For example, if a business offers deep discounts too frequently, customers may come to expect these discounts, and may be less likely to pay full price for the product in the future. Additionally, if the business lowers its prices too frequently, it may not be able to cover its costs or maintain profitability.


Promotional pricing is a common pricing strategy in ecommerce and retail, where products are offered at a reduced price for a limited time to encourage sales. This strategy can target specific customer segments and be timed to boost sales during slow periods. It’s important to consider the long-term impact and to use this strategy in a way that supports the overall goals of the business.