Most of the people who run online store probably have made promotion activities. Some promotion is for large sale, some others may be for clearance. Either way is for one simple reason: small profit on a great quantity of goods, through direct or indirect methods to lower the price and strive for realizing more sales. Sometimes the promotion is combined with third party payment methods.
However in the actual operation, many online store seller has narrow understanding about promotion, they think promotion is reduce price, only if the product is cheap enough. But the result often does not go as we expected. The single product profit reduced but the actual sales has not reached enough. Additionally, when the promotion finished, many stores scores and comment go bad which causes the whole store combination weight lowered. As the promotion over, the store search traffic keeps reducing.
So is promotion suitable for every store.
Generally consuming good is belong to the high elastic demand, therefore when the price being adjusted slightly it will affect greatly on the demand, so to realize the “small profit on a great quantity of good”. But not every consuming good has this feature. If your product does not belong to this feature, it does not necessarily need promotion. The consumer will not buy your goods in large quantity just because your lowered the price. In that case you lost your profit, it cannot help you achieve “small profit on a great quantity of good”.
If you want to make a promotion, the first thing you are considering is your merchandise suitable for promotion or not. Better not to see the sales quantity does not go rise after your lowered your price.
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