Discounts

7 Effective Discount Pricing Strategies to Increase Sales in Beauty & Cosmetics (2025)

Diksha P
December 7, 2024
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$430 billion.

That’s the amount the beauty market generated alone in 2023.

It is further expected to reach  $580 billion by 2027. 

It's no wonder why, everyone from celebrities to financiers, is scrambling to get a slice of the pie. Convenience, wider product selection, social media influence, and tech integration are all fueling this growth. 

However, with this influx of new brands and investors, the e-commerce beauty market is becoming increasingly saturated. So how can online beauty store owners keep their heads above water? To stand out, they need a strong differentiation and multi-pronged strategy. 

Strategic discount pricing can be one such effective strategy. Used correctly, it can help attract new customers, encourage exploration of new products, and ultimately boost sales. 

By focusing on differentiation, an effective discount strategy, exceptional service, and embracing technology, beauty stores can thrive in this competitive yet exciting market. In this blog, we talk about the topmost discount pricing strategies that can help your online beauty store thrive in the competitive industry. 

7 Winning Discount Pricing Strategies For E-commerce Beauty & Cosmetics Stores

1.Buy One, Get One Free (BOGO)

The ever-popular BOGO (Buy One, Get One Free) offer is a classic and effective discount strategy for e-commerce beauty and cosmetics stores. It involves offering customers an additional product at no cost when they purchase one item at its regular price. 

Shoppers love a good deal. And getting something extra, like a free lipstick with another one for free hits just right on the spot. For your store, BOGO deals are a great way to sell more, introduce new products, and even clear out slow-moving inventory. 

Buy One, Get One Free (BOGO)

For instance, Bath & Body Works is a masterclass in utilizing BOGO deals to excite customers and boost sales within the body care category. They frequently offer "Buy 3, Get 3 Free" deals, perfect for stocking up on favorite washes, lotions, and scents. This brilliant discount strategy helps them clear out inventory, boost sales with a sense of urgency, and keep customers loyal with the chance to score free goodies. 

Use these 5 quick tips to effectively offer BOGO discounts:

  • Outline which products qualify, how the discount applies (often lower-priced item is free), and any purchase minimums.
  • Promote it on your website, social media, and email marketing.
  • Choose products that complement each other or encourage add-on purchases.
  • Create urgency with limited-time BOGO offers.
  • Monitor BOGO performance to see what resonates with your customers.

Kite by Skai Lama is built for online beauty store owners like you. Get started with tiered discounts, BOGO offers, stackable discounts, and up your sales and engagement. Install it on Shopify now.

Looking for effective BOGO examples to skyrocket your sales?

2.Free Samples & Trial Sizes

For most online beauty and cosmetics stores, one of the biggest challenges is overcoming customer hesitation, especially for pricier items like serums or new fragrances.

Offering free samples addresses this head-on. It allows buyers to try an expensive product without fully committing to it, reducing the financial risk. 

Think of it as a test drive – if customers love the way a new moisturizer feels on their skin, they're much more likely to buy the full size. Or someone with oily skin can test a new moisturizer to see if it clogs pores. This firsthand experience lets them make informed decisions. The more a customer understands a product, the more confident they are in their purchase.

This ultimately leads to more confident purchases and happy customers.

Free Samples & Trial Sizes

Too Faced takes free samples to another level with their "Choose Your Free Gift" offer. So, when a buyer’s cart reaches a minimum order value of $50, they qualify for getting two free samples which they can choose from a curated selection of Too Faced’s newest products. 

This is a brilliant discount strategy – it allows customers to try the latest launches for free, sparking excitement and leading to full-size purchases if they fall in love with a new item.

When offering free samples as a discount strategy, follow these tips:

  • Offer high-value or new launch samples.
  • Set a minimum order value (MOV) to qualify for free samples.
  • Include samples that address common issues.
  • Give customers a choice of 2-3 free samples.

3.Limited-Time Offers & Flash Sales:

At this point, most of you reading this blog must have bought from an online flash sale at least once.

These limited-time sales create a thrilling sense of urgency by offering products at a heavy discount. Customers fear missing out (FOMO) on deals, which leads them to impulsively buy products. 

Amazon Prime Day or Cyber Monday is one of the most popular flash sale events that have collectively generated a revenue of over $23 billion. Besides boosting sales, this discount strategy also helps stores clear excess inventory or introduce new products to a wider audience, increasing their reach.

Free Samples & Trial Sizes

Flash sales generally last for a few hours. Macy's, for example, offers significant discounts (40-50%) on a select few beauty products just for one day only. The discounts are for specific categories like facial care essentials. This type of sale can be a great way to clear out excess inventory, attract new customers looking for bargains, and potentially boost sales within their beauty department.

By cleverly implementing limited-time offers and flash sales in your discount strategy, e-commerce beauty stores can create a sense of urgency and excitement, boost sales, and build a loyal customer base.

Bonus Tips:

  • Discount popular or new launches to spark excitement (and maybe full-size purchases later).
  • Use surprise elements like "Flash Fridays" (Sephora) to keep customers engaged and checking back for deals.
  • Offer discounted bundles to boost average order value.

4.First-Time Customer Discount

Acquiring customers can be expensive. With customer’s attention spans getting shorter by the day, it's important to hook them up fast. One way to do that is by offering first-time customer discounts. 

A first-time customer discount is like a welcome gift for a customer visiting your online store for the first time. It's a special offer, like a percentage off, a free gift, or free shipping, to entice new people to try the products for less. The promise of a deal can make them further browse your range, potentially leading them to find something they like. 

Free Samples & Trial Sizes

These offers act like magnets, lowering the barrier to entry for potential customers, especially for pricier items or unfamiliar brands. Also, if a buyer has a great experience with discounted products, they're more likely to return to buy more, even at full price.  

Take e.l.f. Cosmetics, for example, are known for their budget-friendly beauty products. When you sign up for their email list, you get a 5% discount on your very first purchase.

This is a great discount strategy used for collecting customer information while encouraging people to try their affordable makeup and skincare.

Bonus Tip: 

  • Feature new or trending products alongside the discount to spark excitement and potentially lead to full-price purchases later.
  • Once a customer signs up for your discount, send a personalized welcome email.  Include product recommendations based on their interests or browsing history. 

5.Tiered Pricing

Tiered discounts can be another powerful discount strategy for boosting sales. It works by offering customers progressively greater discounts as their order value increases.

Struggling to move a moisturizer? Bundle it with a popular product in a higher discount tier. This creates a more attractive offer for customers, while simultaneously clearing out slow-moving stock and making space for exciting new arrivals.

Tiered discounts cater to a wider customer base. Budget-conscious beauty enthusiasts can still benefit from a smaller discount by spending less. Meanwhile, loyal high rollers can save more with higher-priced tiers. 

Free Samples & Trial Sizes

Victoria’s Secret is a perfect example of a tiered discount strategy disguised as a bundle deal. By offering their body mists at 2 for $24 and 4 for $40, Victoria's Secret incentivizes customers to buy more than one mist. This strategy clears out older stock before introducing a new range.  

Customers see it as a good deal, while Victoria's Secret efficiently manages its inventory and makes space for new products. 

Bonus Tips:

  • Consider offering personalized tiered discounts based on past purchases, encouraging customers to explore new categories within your store.
  • Consider time-limited tiered discounts to encourage faster purchases and clear out stock before the offer disappears.

Discover more about tiered pricing and how it can boost your sales.

6.Seasonal Discounts

How would you feel about getting a discount on your favorite sunscreen right before summer? Or a brightly colored makeup palette before spring? Or perhaps gift sets perfectly curated for the holiday season? 

Great, right? Well, that’s a seasonal discount strategy for you. It's a strategic move that translates into increased sales and happy customers.

Seasonal discounts capitalize on these natural shopping waves, aligning big offers with holidays and events to keep the customers in a good spending mood. 

They create a sense of urgency and excitement. Limited-time offers nudge customers to act fast, knowing they have limited time to snag a deal before it goes away. This "fear of missing out" mentality can be a powerful motivator, driving purchases and keeping the store buzzing.

Free Samples & Trial Sizes

Take Sephora for example, their "Summer Must-Have Set" is a perfect example of a seasonal discount strategy.  This limited-edition kit, packed with travel-sized favorites for just $35 (a massive discount from its $109 value), gives customers everything they need to look and feel their best all summer long.

Bonus Tips:

  • Discount what customers crave each season - sun protection in summer, hydration in winter.
  • Limited-time deals create urgency, encouraging faster purchases.
  • Create pre-made gift sets that save time, and money, and introduce new products.
  • Highlight original & discounted prices to emphasize savings.

Want to build your own bundles? Easy Bundles can help. Know more here.

7.Loyalty Programs 

Loyalty programs can be a game-changing discount strategy for online beauty stores, boosting sales and fostering long-term customer relationships. They are designed to reward customers for their repeat purchases and encourage them to continue purchasing from your brand.

Think of a loyalty system with multiple membership levels, each one unlocked based on a customer's total purchase history. As customer buys more, they start getting better discounts. This increases repeat business, boosting sales and customer lifetime value.

Free Samples & Trial Sizes

A great example of an effective beauty reward program is Ulta Beauty. The program offers tiered discounts (similar to Sephora) but adds a twist with points that can be redeemed for various rewards. Customers earn points for purchases, birthday gifts, and even social media engagement. These points can be used for free products, additional discounts, or even a "surprise beauty steal" option, adding an element of fun and anticipation.  

Bonus Tips:

  • Gamify your program with points for purchases, reviews, and social engagement, redeemable for exciting rewards.
  • Include surprise rewards or "mystery boxes" to keep your program fresh and exciting for customers.
  • Leverage customer data to tailor discount recommendations and special offers based on individual preferences.
  • Reward loyalty with exclusive early access to new product launches and limited-edition items.
  • Make customers feel special with exclusive birthday gifts or bonus points on their special day.

A well-structured loyalty program powered with a clever discount strategy can help you turn your customers into loyal brand advocates who drive sales and business growth. Set up and get started with your loyalty program in a matter of few minutes with Giftkart.

The online beauty industry thrives on a captivating blend of quality products, enticing visuals, and strategic promotions. By implementing these discount pricing strategies, you can attract customers, encourage repeat purchases, and foster brand loyalty.

Ready to take your Shopify beauty store to the next level? Skai Lama can help. Our suite of apps can help you increase average order value, improve customer retention, and ultimately drive sales. Book a free call with our e-commerce experts today and discover how Skai Lama can turn your Shopify store into a revenue-generating powerhouse!

FAQs

1. How can I measure the success of my discount pricing strategies?

You can measure its success by tracking sales increase, customer acquisition costs, average order value, and customer lifetime value.

2. How often should I run discount promotions for my beauty store?

Discount frequency depends on your goals; test different intervals (e.g., weekly, monthly) to find optimal balance between sales and brand perception. However, make sure to run discounts during holidays.

3. Is there an Shopify app that can help me with discount pricing strategies?

Yes, Kite is a Shopify app that offers a wide range of discount pricing strategies. It provides flexibility with manual and automatic discounts, free gifts, BOGO offers, volume discounts, and more.

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Extensive experience in e-commerce solutions, Strong portfolio with significant GMV generated High customer satisfaction (over 500 five-star reviewd

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Pony is a top London-based design studio working with companies of all sizes around the globe. They specialise in Brand Identity, Web Design, and UX/UI for digital products, delivering award-winning results with rapid turnaround times.
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Diksha P

Diksha leads Product Management at Skai Lama. She talks about discount campaigns, product recommendations, quizzes, and surveys to personalize Shopify stores.
Supercharge Sales with Kite!
Supercharge Sales with Kite!
Boost sales with Free Gifts, Discounts, and BOGO offers. Customize easily and get 24/7 support.
Free gifts & discounts
BOGO offers
Supercharge Sales: Free Gifts, Discounts, BUy X Get Y & BOGO Offers
Supercharge Sales: Free Gifts, Discounts, BUy X Get Y & BOGO Offers
All In One Free Gifts & Discount App. Customize easily and get 24/7 support.Try now to transform your store’s success!
All In One Free Gifts & Discount App. Customize easily and get 24/7 support.Try now to transform your store’s success!
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