How do I identify which products sell best with discounts?
Muhammed Tüfekyapan
Founder & CEO
TL;DR - Quick Answer
Complete Expert Analysis
Strategic Product Discount Performance Analysis
Identifying top-performing discountable products requires a multi-dimensional analytical approach that goes beyond simple sales volume.
Key Performance Metrics for Discount Analysis
| Metric | Calculation | Significance |
|---|---|---|
| Discount Conversion Lift | (Discounted Conversion Rate / Standard Conversion Rate) - 1 | Measures conversion rate improvement during discount |
| Margin Impact Ratio | (Discounted Revenue - Discount Cost) / Original Revenue | Evaluates net financial benefit of discount |
| Inventory Velocity | Units Sold During Discount / Average Monthly Sales | Indicates discount's effectiveness in moving inventory |
Systematic Discount Performance Evaluation Process
1. Data Collection Phase
- •Gather 6-12 months of historical sales data
- •Segment products by category, price point, and historical performance
- •Track pre-discount and post-discount metrics
2. Performance Scoring Framework
- •Assign weighted scores across multiple dimensions
- •Consider conversion lift, margin preservation, and inventory movement
- •Develop a composite discount performance index
Discount Performance Scoring Matrix
High Potential Products
- Conversion Lift > 50%
- Margin Impact > 0.8
- Inventory Velocity > 2x
Moderate Potential Products
- Conversion Lift 20-50%
- Margin Impact 0.5-0.8
- Inventory Velocity 1-2x
Low Potential Products
- Conversion Lift < 20%
- Margin Impact < 0.5
- Inventory Velocity < 1x
Advanced Discount Strategy Recommendations
Strategic Discount Targeting
- ✓Focus on high and moderate potential products
- ✓Create tiered discount strategies
- ✓Rotate discount candidates quarterly
Risk Mitigation
- ✓Set maximum discount thresholds
- ✓Monitor margin erosion
- ✓Implement dynamic pricing controls
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With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.
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