ecommerce discounts

Discounts, Deals, and Promo Codes – To Use or Not to Use?

There comes a time that every seller considers using some kind of ecommerce discounts, promotions, or sales to attract new customers and retain the old. That’s a good thing, because no matter how your business is doing – growing like crazy, or struggling to make it – you should always be thinking about ways to improve your bottom line.

Does Offering Ecommerce Discounts and Deals Really Work?

When you are contemplating adding deals and discounts to your online store, your first concern is likely to be about whether or not it really works. Statistics say it does:

  • According to Marketing Insights, 71 percent of customers made their decision to buy based on incentives offered.
  • Additionally, 54 percent of shoppers will buy items left in shopping carts, if the products are offered at a lower price.
  • 68 percent of customers say that coupons generate loyalty, and loyal customers are worth up to 10 times more than their first purchase.

Offering incentives and deals to your customers can be a powerful strategy to increase conversions, but it has to be done right. If used haphazardly, you can seriously injure your online brand and your profitability.

Types of Online Offers That Work

There are many deals and ecommerce discounts that you can offer your customers. Here are a few common ones that work well and can be used with our integration partners here at ecomdash.

Percent-Off Discount – Probably the most popular discount offered by online sellers, percentage-off discounts can be used in small amounts (5% or 10%) to drive sales, or in larger amounts (25% – 50%+) to liquidate slow moving inventory.

Sears uses an upcoming holiday to offer customers 35% off on appliances, as well as free shipping for purchases over $399. These products are likely to result in additional sales such as: accessories, warranties, or additional products to reach the dollar amount required to receive free shipping.Sears

Email Deals – Making offers to your loyal customers via email, whether percent-off or dollar amount discounts, increases customer engagement and personalizes your customer service.

Customers who sign-up at Newegg can enter their email address and receive discount codes and other promotions in their inbox.


Outlet or Clearance – Having an outlet or clearance section for customers to browse for great deals is a way to get more shoppers to your site, where they will likely purchase other items. dedicates a whole department to clearance items and allows shoppers to search by price.


Free Shipping – The cost of shipping is often cited as the primary reason for shopping cart abandonment. Offering free shipping (even when it’s only for over a specific dollar amount) is a way to turn those potential cart abandonments into conversions.

With, customers are able to see when their shopping cart has reach the $35 threshold to qualify for free shipping.



Coupon or Promo Codes – Using codes offers you many different ways to generate sales, liquidate inventory that just isn’t moving, and show customer appreciation. The flexibility of promo codes is a great tool for ecommerce retailers. They can be presented for specific products, for specific dollar amounts or percentage off, for BOGO offers, for free shipping, and more. The possibilities are endless. They can also be found on website landing pages, sent in emails, or posted on social media.

Abercrombie & Fitch use a coupon code to encourage customers to spend more – the more you spend the bigger the discount.


Loyalty Programs – These programs encourage customer retention and loyalty by offering points for dollars spent, which the customer can then use to shop your website.

Rakuten uses a loyalty program called Super Points, with which customers are able to purchase additional products with the points that they earn. At selected times or during specific campaigns, Rakuten multiplies the points awarded, giving the customer even more spending power.Ratuken

Deal of the Day/Week/Month – This type of deal is another great way to move inventory that isn’t selling. It also encourages your customers to visit your site regularly to get the best deals and the best ecommerce discounts.

Amazon is the most popular marketplace online, and it’s because they know what they are doing. In this example, you can see the Deal of the Day products. They are able to move inventory, and with their offer of free shipping over a specific dollar amount, customers are encouraged to buy more.


Is Offering Discounts and Deals Right for Your Business?

Ultimately, you are the only one who can decide whether offering deals like the above are effective for your brand and your bottom line. Ecommerce discounts and offers don’t work for every business. Determining if one or more of the offers on the list will work for both you and your customers will require some testing and experimentation. Work on liquidating some of your inventory that is not moving, and see what happens. You can use a software system like ecomdash to get business reports on how well each product sell to speed along this process. You will likely find at least one method that increases customer loyalty and, most importantly, your sales.

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About the Author


Jami is a blogger for ecomdash. She is an advocate for mental health awareness and addiction recovery, drinks her weight in caffeine every day, and has a deep affection for fine-point pens.

Jami DeLoeDiscounts, Deals, and Promo Codes – To Use or Not to Use?

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