Meaning
A marketing display technique shows an original price with a line drawn through it alongside the lower promotional price to highlight a discount. E-commerce platforms use a strikethrough price to encourage purchases by making the value of the savings clear to online shoppers. This practice is heavily regulated to ensure the crossed-out price represents a genuine previous offer.
Legal Requirement
Consumer protection laws require that the crossed-out price must have been active for a specified consecutive period before the promotion started. This restriction prevents retailers from inflating prices for a single day to claim a fake discount. Compliance officers monitor these listings closely.
Conversion Strategy
Displaying the original cost next to the sale price increases the likelihood of a purchase by emphasizing the financial benefit to the customer. When a retailer displays a strikethrough price, the contrast between the two numbers helps trigger faster purchasing decisions. This display technique is standard practice across major online retail channels.
This consistency helps retailers clear excess inventory quickly.
Data Management
E-commerce database systems must maintain accurate records of price histories to automatically generate these promotional displays. The software updates the pricing fields based on approved promotional schedules to avoid manual errors. This automation protects the retailer from fines.