January 26, 2022

SB-Accounting

Accounting + Finance Blog

Meaning of Seasonal Discount with key Explanations

Meaning of Seasonal Discount with key Explanations
Shares

When you go to the market, you will definitely prefer to buy items from people that give you an extra quantity of the goods you buy without charge. This is the normal nature of humans. We want free things. That’s why God gives us the air and water for free.

To meet this natural aspect of humans, businesses give discounts. I have discussed a handful of it here. In this article, we will examine the seasonal Discount.

Meaning of seasonal discount

It is defined as a type of discount given during festive periods.

It can also be defined as a kind of discount available in a particular time period every year.

Furthermore, the seasonal discount is a reduction in the selling price of goods or services during festive periods or in a time decided by the entity.

READ ON  Ten (10) Key Differences between Assets and Liabilities

Key Explanations

It is a type of discount. Yes, just like every other discount, this type of discount is a reduction in price. But the purpose is different. While the trade discount is given to encourage bulk buying, cash discount is provided by an entity to ensure that cash is recovered from goods sold on credit. In the other vein, the seasonal discount only arises in special periods.

It is available in festive periods
. Must seasonal discounts are provided during festive periods. Or periods when a country or the world has a celebration.

For example, on October 1st, Nigerians will celebrate its Independent day. Many companies (eCommerce) may use it as an opportunity to provide seasonal discounts.

During November and December periods, there is the black Friday’s created by eCommerce to give a rebate. This is for the Christmas celebration. There is also the Yakata sales period organised by Konga.

READ ON  Revenue meaning and explanations

It may be set aside by the entity. At times an entity may set a date(s) to give a seasonal discount. Jumia also celebrates its anniversary during June and July, called Jumia anniversary. All with a massive discount. Amazon set two days for its seasonal discount called Prime Day. But the date usually varied every year.

This type of discount increased sales. Amazon Prime Day has massive sales compared to their periods of time in a year. The company reported making 7.16 Billion Dollars only in 48 hours in July 2019. This is almost triple its sales in 2015 Prime’s day.

 

Meaning of Seasonal Discount with key Explanations
Source: Statista

Conclusion

This discount aimed at the reduction in price but only on seasonal periods or a day set aside by the entity. Generally, shoppers utilised this period to buy luxury items.

Shares