Discount timing, bundles, multi-unit offers, free-shipping thresholds and decoy prices: what published studies say about order value and margin, and where they stop.
Consulting firmMcKinsey, “The power of pricing” (opens the source)Sources
A sale is a price cut with a depth, a start and an end. Consulting-firm research on large retailers shows why all three are worth getting right.
Consulting firmMcKinsey, “Growth and profitability in e-commerce” (opens the source)Sources
Fulfilment is a large share of e-commerce revenue, so bigger baskets matter. Peer-reviewed and consulting research on bundles gives a hopeful sign and a clear warning.
Peer-reviewedDrechsler et al., European Journal of Marketing (opens the source)Sources
Two peer-reviewed studies on multi-unit price promotions, and what BCG and McKinsey say a promotion can cost.
Independent researchBaymard, “Cart Abandonment Rate Statistics” (opens the source)Sources
The usual advice is to set the threshold above the typical basket. Four sources give a more careful picture of orders, order value and returns.
Peer-reviewedFrederick, Lee and Baskin, JMR (opens the source)3 min read
Pricing advice often tells store owners to add a “decoy” option so shoppers pick the bigger bundle. The research behind that advice is more limited than the guides suggest.
