Have you ever bought something online just because you saw a message that says “only 2 left in stock” or “offer ends in 3 hours”?

If so, you have experienced the power of scarcity marketing.

Scarcity tactics are commonly used by businesses and online retailers to boost sales by indicating limited availability.

However, not everyone knows how to use them properly, which is why it fails despite being a simple and cost-effective way to increase conversions.

In this blog post, we will share with you some effective scarcity marketing tactics that you can apply to your own business or online store.

These techniques will help you create a sense of urgency, a fear of missing out among your existing customers, and social proof among your potential clients that will persuade them to take action.

Let’s get started!

What is scarcity marketing?

A scarcity marketing strategy uses the psychological scarcity principle to influence consumer behaviour.

This approach banks on the perception that something is in short or limited supply, which then signifies high demand and perceived value— and therefore, desirability.

The reason why scarcity marketing works

Is scarcity marketing effective?

The short answer is, yes. In fact, marketing teams use this strategy because scarcity triggers several psychological effects, such as:

1. Urgency

When we perceive that something is scarce, we feel pressured to act quickly before it runs out or becomes unavailable.

This is because humans have a natural tendency to avoid losses and regrets.

We don’t want to miss out on a valuable opportunity or a good deal that might not come again.

At the same time, we also don’t want to see others get what we want and feel envious or inferior.

Therefore, we are more likely to make a purchase decision when we see that a product or service is in short supply or in high demand.

2. Fear of missing out (FOMO):

Scarcity pushes us to feel a certain fear of losing an opportunity or being left behind by others who can potentially gain access to something that's in limited stock.

Most of us have a natural desire to belong and fit in with others.

We don’t want to feel excluded or isolated from a group or a community that shares our values and interests.

We also don’t want to feel inferior or inadequate compared to others who have something that we don’t.

In effect, we are more likely to take action when we see that a product or service is exclusive or popular among others.

3. Reliance on social cues

We assume that anything scarce is popular or approved by others, and therefore more trustworthy or attractive.

People follow the crowd and rely on social cues. However, nobody wants to make a wrong or risky decision that might harm them or cost them in the same way that everybody wants to go for things that benefit them.

Hence we are more likely to trust and choose a product or service that has positive feedback, ratings, reviews, endorsements, or testimonials from others.

Cognitively, scarcity marketing campaigns motivate us to take action, such as buying a product, signing up for a service, or joining a community. That’s why every scarcity tactic can be a powerful tool to boost conversions and sales for your business.

Scarcity Marketing Tactics

Here are some scarcity marketing tactics that you can use to increase conversions and sales for your business or product. We have also included some scarcity marketing examples for you to learn from.

Limited time offers

One of the most common and effective scarcity marketing tactics is to offer early access discounts, bonuses, and freebies for a limited period of time. This creates a sense of urgency among potential and loyal customers, encouraging them to buy now rather than later.

For instance, you can offer a 50% off coupon that expires in 24 hours, a free trial that ends in 7 days, or a free gift that is only available for the first 100 customers.

Some tips for using limited-time offers are:

• Make relevant and valuable offers. Don’t offer something they don’t want or need.
• Be clear and specific. Refrain from using vague terms like “soon” or “while supplies last”. Use exact numbers and dates to show how much time or quantity is left.
• Keep the offer genuine and credible. Never use fake scarcity or lie about its availability or duration. This can damage your reputation and trustworthiness.
• Publicize your offer. Make it visible and prominent on your website, landing page, email, or social media. A pro tip would be to use eye-catching colours, fonts, images, and buttons to draw attention to the offer.

To emphasize what we mean, let's take a closer look at a limited-time offer done by Lumi Candles PH:

Lumi offers a 100-peso discount for first-time buyers while offering a trio promo that customers can use to save up to 90 pesos for three pieces of 250 ml candles.

Countdown timers

Another way to get more sales with product scarcity is to add a countdown timer that shows how much time is left before an offer expires.

This adds a visual element to your marketing materials, making them more compelling and persuasive in capturing your customers’ attention and interest.

To motivate unsure customers in making a purchase before the product sells out, you can add a countdown timer that shows how many hours, minutes, and seconds are left until the end of your sale, launch, or webinar.

You can make countdown timers effective by:

• Matching the countdown timer with the duration of your offer. Don’t use a timer that counts down from a longer or shorter time than your actual offer.
• Make sure the countdown timer is accurate and consistent across different devices and platforms. Don’t use a timer that resets or changes depending on the user’s location or browser.
• Seeing that your countdown timer is noticeable and easy to read. Don’t use a timer that is too small, too fast, or too cluttered with other elements.
• Make sure the countdown timer has a clear call to action. Don’t use a timer that doesn’t tell the user what to do next. Use words like “Buy Now”, “Sign Up”, or “Join Now” to prompt the user to take action.

An example of a countdown timer is this one from AppSumo:

AppSumo uses a countdown timer to show how much time is left to get a discounted deal on a software product. The timer is accurate, noticeable, easy to read, and has a clear call to action.

Low stock alerts

Another scarcity marketing tactic that you can use is to show how many items are left in stock or how many people are viewing or buying the product. This creates a sense of scarcity and FOMO among your customers and motivates them to buy before the product runs out or becomes unavailable.

For example, you can show a message like “Only 2 left in stock” or “20 people are looking at this product right now” on your product page or checkout page.

Some tips and best practices for using low stock alerts are:

• Make sure the low stock alerts are relevant and realistic. Don’t use low stock alerts for products that are always in stock or have unlimited supply. Don’t use low stock alerts that are too low or too high for your product demand.
• Make sure the low stock alerts are updated and accurate. Don’t use low stock alerts that don’t reflect the actual inventory or sales of your product. Don’t use low stock alerts that don’t change or disappear when the product is sold out or restocked.
• Make sure the low stock alerts are visible and persuasive. Don’t use low stock alerts that are too subtle or hidden on your website. Use colors, fonts, icons, and badges to highlight the low stock alerts and make them stand out.
• Make sure the low stock alerts have a clear call to action. Don’t use low stock alerts that don’t tell the user what to do next. Use words like “Add to Cart”, “Buy Now”, or “Hurry” to urge the user to take action.

An example of a low stock alert is this one from Amazon:

Amazon shows a message that says “Only 1 left in stock - order soon” for a product that is in high demand. The message is relevant, realistic, updated, accurate, visible, persuasive, and has a clear call to action.

Limited edition products

Another way to create a sense of scarcity and exclusivity with your products is to offer them as limited-edition products that are only available for a short time or in limited quantities. This makes your products more unique and desirable among your customers and encourages them to buy before they miss the chance.

For example, you can offer a product that is only available for a certain season, event, or occasion. You can also offer a product that is only available in a certain color, size, or design.

Some tips and best practices for using limited-edition products are:

• Make sure the limited-edition products are relevant and appealing to your target audience. Don’t offer limited-edition products that don’t match your brand identity, values, or niche. Don’t offer limited-edition products that don’t appeal to your customer’s needs, wants, or preferences.
• Make sure the limited-edition products are clear and distinctive. Don’t offer limited-edition products that are too similar to your regular products or your competitors’ products. Use labels, logos, packaging, and images to differentiate your limited-edition products from others.
• Make sure the limited-edition products are genuine and credible. Don’t offer limited-edition products that are not really limited or exclusive. Don’t offer limited-edition products that are not really new or different from your existing products.
• Make sure the limited-edition products have a clear call to action. Don’t offer limited-edition products that don’t tell the user what to do next. Use words like “Shop Now”, “Order Now”, or “Get It Now” to prompt the user to take action.

An example of a limited-edition product is this one from Starbucks:

Starbucks offers a limited-edition drink called Pumpkin Spice Latte that is only available during the fall season. The drink is relevant, appealing, clear, distinctive, genuine, credible, and has a clear call to action.

Waitlists and pre-orders

Another scarcity marketing tactic that you can use is to allow customers to sign up for a waitlist or a pre-order for a product that is not yet available or sold out. This creates a sense of anticipation and demand among your customers and makes them feel special and privileged to get access to your product.

For example, you can allow customers to join a waitlist or a pre-order for a product that is coming soon, in high demand, or out of stock. You can also offer incentives or rewards for joining the waitlist or the pre-order, such as discounts, free shipping, or bonuses.

Some tips and best practices for using waitlists and pre-orders are:

• Make sure the waitlists and pre-orders are relevant and valuable to your target audience. Don’t use waitlists and pre-orders for products that are not in demand or not worth waiting for. Don’t use waitlists and pre-orders for products that are easily available elsewhere.
• Make sure the waitlists and pre-orders are clear and transparent. Don’t use waitlists and pre-orders that are unclear about the availability or delivery date of the product. Don’t use waitlists and pre-orders that are misleading or deceptive about the benefits or incentives of joining them.
• Make sure the waitlists and pre-orders are engaging and interactive. Don’t use waitlists and pre-orders that are boring or passive. Use emails, notifications, social media, and gamification to keep your customers updated, excited, and involved in the process.
• Make sure the waitlists and pre-orders have a clear call to action. Don’t use waitlists and pre-orders that don’t tell the user what to do next. Use words like “Join the Waitlist”, “Pre-Order Now”, or “Reserve Your Spot” to encourage the user to take action.

An example of a waitlist is this one from Tesla:

Tesla allows customers to join a waitlist for its Cybertruck, a futuristic electric vehicle that is coming soon. The waitlist is relevant, valuable, clear, transparent, engaging, interactive, and has a clear call to action.

Social proof

Another way to create a sense of scarcity and popularity with your products is to show social proof that indicates how many people have bought, reviewed, or recommended your products. This creates a sense of trust and validation among your customers and influences them to follow the crowd and buy your products.

For example, you can show social proof such as testimonials, ratings, reviews, endorsements, awards, certifications, badges, logos, or statistics on your website, landing page, email, or social media.

Some tips and best practices for using social proof are:

• Make sure the social proof is relevant and credible to your target audience. Don’t use social proof that is irrelevant or untrustworthy. Don’t use social proof that is fake or fabricated.
• Make sure the social proof is clear and specific. Don’t use social proof that is vague or generic. Use names, photos, dates, numbers, and quotes to show the details and evidence of the social proof.
• Make sure the social proof is visible and persuasive. Don’t use social proof that is hidden or ignored on your website. Use colors, fonts, icons, and badges to highlight the social proof and make it stand out.
• Make sure the social proof has a clear call to action. Don’t use social proof that doesn’t tell the user what to do next. Use words like “Buy Now”, “Sign Up”, or “Learn More” to direct the user to take action.
• An example of social proof is this one from Airbnb:
• Airbnb shows social proof such as ratings, reviews, and endorsements from customers and celebrities on its website. The social proof is relevant, credible, clear, specific, visible, persuasive, and has a clear call to action.

Grow your business with scarcity marketing

Scarcity marketing is a powerful strategy that can help you boost conversions and sales for your business or product. By creating a sense of urgency, FOMO, and social proof among your potential customers, you can persuade them to take action and buy your products.

In this blog post, we have shared with you some effective scarcity marketing tactics that you can use to increase conversions and sales for your business or product. These tactics are:

• Limited-time offers: offer a discount, bonus, or freebie for a limited period of time
• Countdown timers: add a visual element to your limited-time offers by showing how much time is left before the offer expires
• Low stock alerts: show how many items are left in stock or how many people are viewing or buying the product
• Limited-edition products: offer a product that is only available for a short time or in limited quantities
• Waitlists and pre-orders: allow customers to sign up for a product that is not yet available or sold out
• Social proof: show how many people have bought, reviewed, or recommended your product

We hope you found this blog post helpful and informative. If you have any questions or feedback, please feel free to leave a comment below. We would love to hear from you.

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