Did you know that only 28% of businesses use final sale promotions in their strategy?*
Final sale promotions are a powerful tool that can boost both your bottom line and customer satisfaction.
Whether you’re an established online business or just starting out, offering final sale items presents a win-win scenario. Let’s dive into the positives of running final sale promotions and why they should be a part of your e-commerce strategy.
The positives for your online business
Quickly clear inventory
Have you got a new collection coming out, and need to get rid of some old stock? Try a final sale promo!
One of the main advantages of final sale promotions is the ability to quickly clear out excess or outdated inventory. For an online business, it’s crucial to keep inventory fresh and up-to-date with the latest trends. By offering items at a discounted final sale price, you can move stock more quickly and make room for new, in-demand products.
Boost your cash flow
Final sale promotions can lead to an immediate boost in cash flow. By pricing items to move quickly, your online business can see a surge in sales, turning unsold inventory into revenue. This is especially helpful when you need a quick influx of cash to cover operating costs or invest in new stock.
Reduce the costs of returns
A key aspect of final sale promotions is that items are usually non-returnable. This can save your online business significant costs related to processing returns, restocking, and reshipping. Not only does this simplify operations, but it also ensures that your profits from these sales are not impacted by costly return logistics.
Attract bargain hunters to your store
Offering final sale promotions can attract a new wave of shoppers to your online business. Many consumers are on the lookout for discounts and deals, and promoting final sale items can help bring them to your website. Once they’re there, they may be tempted to check out your full-priced products as well, increasing overall sales.
The positives for your customers
Significant discounts
One of the biggest draws for customers is the significant discounts offered during final sale promotions. Shoppers love getting high-quality products at a fraction of the original price, making final sales incredibly attractive to budget-conscious consumers.
Being able to try new things guilt-free
Because final sale items are offered at a reduced price, customers may feel more inclined to try new products they wouldn’t typically purchase at full price. This can introduce them to new favourites, making them more likely to return to your online business for future purchases.
Potential issues with final sale promotions
While final sale promotions are largely beneficial, there are some potential downsides to consider. For example, some customers may end up not liking the products they purchase but find themselves unable to return or exchange them, as final sale items are typically non-returnable.
To address this, it’s essential for sellers to include a clear disclaimer on all final sale products, outlining that the items cannot be returned or exchanged. This helps manage customer expectations and reduces dissatisfaction after the sale.
Promoting a circular economy
You may wonder, what should customers do if they no longer want the final sale item, but returns are not allowed?
One option for shoppers who aren’t satisfied with their final sale purchases is to resell the items through resale programs or platforms. Many online retailers, including The Iconic, who partnered with AirRobe to offer resale options where customers can sell clothing to others.
This helps create a circular economy, where products are given a second life rather than being discarded.
Interested in prioritising sustainability with your online business? Check out the below blog posts that can help you make a difference:
Final sale promotions are a strategic tool for any online business looking to boost sales, clear out inventory, and attract new customers. Both your business and customers win when you run final sale promotions, making them a valuable addition to your ecommerce strategy. Whether you’re looking to make room for new stock, improve cash flow, or create brand loyalty, final sale promotions can deliver the results your online business needs.
* 2024 Inside Australian Online Shopping (Australia Post, 2024).
