What term is used when a seller reduces the selling price on a product?

The correct answer is the term "discount." A discount refers to a reduction in the selling price of a product, often used as an incentive to encourage sales or to clear inventory. Discounts can come in various forms, such as percentage reductions, fixed amount deductions from the price, or promotional events aimed at attracting consumers.

While a rebate involves a partial refund after a purchase has been made, and an allowance typically refers to a reduction in price that a seller provides to a buyer based on specific conditions (such as damage or defect), a discount specifically applies to the price at the point of sale. Additionally, a sale usually implies a temporary event or period during which discounts are applied, but it does not encompass all instances of price reduction. Therefore, "discount" is the most accurate term that describes the act of a seller reducing the selling price on a product.