Creative & Offers
Buy One Get One vs Percentage Discount for Ecommerce
Buy One Get One promotions encourage unit volume. Percentage discounts reduce the price of whatever the customer already intended to buy.
That difference affects both AOV and margin.
BOGO can move more product
It works especially well when:
- products are replenishable
- customers can use multiples
- cost of goods is low relative to retail
- inventory needs to move
Percentage discounts are more flexible
A customer who only wants one product may prefer 20% off rather than being forced into two.
“Free” changes perception
BOGO can feel like a larger offer even when the economic discount is similar.
But calculate the actual cost. Giving away an item with high COGS may be much more expensive than a smaller percentage discount.
Watch future demand
If customers buy six months of supply during a promotion, near-term repeat purchase can decline.
A promotion changes purchase timing as well as conversion.
Need a second opinion on the offer?
If you are planning a BOGO campaign and want to understand the impact on AOV, margin and repeat purchases, contact us.