Websites like Groupon, which allow people to “crowd purchase” products and services from local retailers, are becoming popular, mostly due to current economies. It makes sense for online stores selling items normally used in bulk to offer volume discounts, but what about specialty or high-dollar items? Groupon is proving that there’s power in numbers, and despite many brick-and-mortar stores reporting losses through the service, it all boils down to setting prices that work for everyone.
This past Christmas my husband and I purchased several of different products for various family members. We bought two Rokus, yet would have purchased more as gifts if we’d been offered a discount for multiple buys. While it’s difficult to compare an electronics site to that of Yankee Candle (which frequently offers discounts on quantity purchases), many people already crowd purchase from online stores simply to save on ship costs.
Online retailers wanting to increase average order amounts and move more product should consider offering a savings when someone purchases either more of a single SKU, or more products overall.
Read full article at Practical eCommerce
