Suppose a customer wants to purchase a watch. The watch’s regular retail price is $100. The shop advertises the watch at a discounted price of $50. That’s a 50% discount. So, the Shopify store displays a message on the product listing saying something like, “Was $100, now $50”, or simply “50% off.”
The message aims to impress the customers by showing them the amazing deal they’re getting. Nevertheless, a couple of things need to happen for this strategy to work truly.
First, the product needs to be truly discounted. In other words, the Shopify store must actually sell the product at a lower price. You see, some stores create bogus deals by artificially inflating prices and then discounting them.
Let’s consider the watch. Virtually all retailers have the same watch at $50. However, one retailer decides to advertise the watch at $100 and “discounting” it. Hence, it appears that customers are getting a great deal. Customers eventually figure out the trick and the “special deal” is no longer effective.
Second, customers need to see if they are really getting a discount. Slapping a “discount” tag on a regularly-priced item may seem clever, but customers will eventually figure that out as well. Therefore, advertising a discount means a true discount.