How to use scarcity marketing (without overdoing it!)

One of the hottest marketing plays of our time is as old as the devil himself.

You might think scarcity marketing is a modern invention.

But, in reality, it’s been around since biblical times. Case in point: the serpent in the Garden of Eden.

Think about it—he basically just used the scarcity principle on Eve.

'Forbidden fruit, you say? The only thing in the garden you can’t have?' Sounds irresistible, right?

How is that any different to a 'limited-edition Birkin bag' or 'exclusive member-only sale'?

This is why Eve’s not to blame. At the end of the day, she’s just a girl.

It’s a universal human truth: we want what we can’t have.

The boy everybody says is bad. The pair of shoes you just can’t financially justify. The last slice of pizza at a party. When something’s almost out of reach, suddenly it’s the only thing we care about. That’s the magic of scarcity marketing.

It’s a strategy built on FOMO and the art of making you feel like this could be your last chance ever (spoiler: it usually isn’t).

But why does it work? And how can brands use it without coming off as, well, a little desperate?

Scarcity marketing flips a switch in our brains, creating urgency and a sense of exclusivity. When a product is in limited supply, it feels more valuable—like it’s practically begging us to buy it before it vanishes into the ether.

Supreme is the ultimate example of this. Their 'drop' culture has had people lining up to buy not just a hoodie, but a piece of history for decades now. Once it’s sold out, it’s not going on the shelves again, heightening desire.

When the supply is scarce, the demand soars. And suddenly, people are willing to camp out overnight for a $90 t-shirt.

Supply and demand is what makes the world go round, in terms of business, anyway.

Mailchimp uses the term 'market equilibrium' to refer to the balance in the market when the quantity of goods and demand for those goods match.

The scarcity principle, however, disrupts this equilibrium. And this is what drives imbalance in supply and demand, giving brands a competitive advantage.

This imbalance had me in a chokehold when it came to the Skims X Fendi launch.

And I was not the only one, because the drop famously broke the internet. According to InStyle, not only did the 125 pieces sell out within the first 24 hours, but the brand also made a million dollars in profit within the first MINUTE of sales.

SKIMS' launches always sell out fast. So the combination of a brand that's already in high demand and a limited, exclusive product run meant it literally flew off the shelves.

And yes, it helps that Kim K.’s a celebrity and she has developed a highly-coveted product. But that doesn’t mean you can’t generate the same kind of FOMO with your own brand.

So here’s how to spritz a little scarcity on your marketing – without overdoing it:

Limited-time offers 

Deadlines create urgency. Whether it’s a weekend flash sale or a 'last chance' email, give people a reason to act now—before they forget or find a better deal elsewhere.

Exclusive drops 

Make your products feel a little more elusive by releasing them in limited quantities or offering early access to your most loyal customers. Think collaborations or seasonal editions you won’t restock.

Scarcity signals 

Showing low stock indicators like 'Only 3 left!' or adding countdown timers on your site can light a fire under your customers. But keep it real—nobody likes feeling like they’ve been tricked into buying.

Pre-sales and waitlists 

Generate hype before you even launch by creating a waitlist or offering pre-orders. It builds anticipation and signals that your product is worth the wait.

The final boss of scarcity marketing uses waitlisting as its main strategy – The Hermès Birkin Bag – which is not just a bag, but a status symbol.

One you literally have to prove to Hermès you are worthy of.

You would think $12,000 would get you any handbag you want – not a Birkin though.

Only customers with an extensive purchase history at the French brand have the opportunity to buy 'quota bags' such as the Birkin or the Kelly. This practice, dubbed 'the Hermès game,' has kept the bags exclusive forever.

It's made them one of the most coveted fashion items in the world.

But there's a line between scarcity and gimmicky.

Unlike Hermès, some brands turn scarcity marketing into a cheap hat trick (like a certain NZ homewares brand that is never not having a sale.)

If everything you sell is 'limited edition' or 'only available for 24 hours', the scarcity card loses its magic.

To make scarcity work, there needs to be real value behind the product—otherwise, it’s just smoke and mirrors. If customers sense you’re using scarcity to mask a lack of substance, the backlash will be swift.

Scarcity marketing is all about tapping into our instinctive fear of missing out—but the trick is to keep it authentic.

Make sure what you’re offering is genuinely worth the chase. After all, we might always want what we can’t have. But we won’t keep wanting it if we find out it wasn’t that special to begin with.

Even Eve may have thought twice if she knew all she was getting was a sh*tty apple, and her man complaining until the end of time.

-Sophie, Writer