Scarcity is when something appears (or actually is) limited. The limitation can be time, quantity, or other.
How you implement scarcity depends on your product or service. Often people use this for discount codes during holidays, but you can use this tactic to advertise the number of items left in stock, items ready for shipping, etc.
The idea that something a customer desires could be gone immediately may encourage them to act rather than wait. The urge to act before the offer expires can encourage a conversion where other tactics may fail.
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