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The Smarter Discount

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Got this idea via @minethatdata– If your average order value is $20, then $5 off a $30 purchase is a better strategy than giving $ or % discount on an individual item.  Why? Because $5 off $30 encourages one-time shoppers to browse several pages and get to know what you offer as they decide what to buy. (source: If …

Fake Scarcity

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At my local grocery store today I noticed they were out of pie crusts.  My first thought was “don’t these idiots know they need to stock-up for last-minute Thanksgiving shoppers?”  And then, a few minutes later, as I noticed 5 different display tables showing off prepared Thanksgiving pumpkin pies it struck me- these guys aren’t idiots at all.  This pie …

Price Elasticity Parabola

Rishi Rawat Blog 2 Comments

If there is one defining characteristic of ecommerce it is the retailer’s ability to seamlessly experiment with pricing.  And yet, I have never, not once, been asked to run a test that validates a client’s assumption about product prices.  It’s as though they have a Platonic sense of what the market is willing to bear.  Now, I understand that it …