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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.
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.
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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:
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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.
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:
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.
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:
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.
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:
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.
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:
Discover more about tiered pricing and how it can boost your sales.
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.
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:
Want to build your own bundles? Easy Bundles can help. Know more here.
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.
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:
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!
We are a team of passionate individuals, all driven by a singular goal - to help our merchants succeed.