4 Discounting Strategies Every Ecommerce Store Owner Needs to Know


Ecommerce companies have a lot to gain or lose when starting their stores and keeping customers invested, which is why offering deals and promotions can be necessary when they want to build a solid customer base. However, they need to know that they are doing it correctly so that they inspire loyalty long term instead of one-off customers that disappear once the deal is done.

Huge Discounts Do Not Equate to Huge Sales

When an ecommerce company starts giving huge discounts on their products, it doesn’t necessarily equate to higher sales figures. The reason why that is what happens more often than not can be defined with the following simple explanations:

  • Customers believe that your product is subpar, or the particular shipment is faulty
  • Your brand loses value since customers begin to perceive the brand as cheap
  • Customers who bought the same products at a much higher price will be disgruntled
  • Very few people will ever buy from your brand at full price if they know that the discount will make that a bad investment

Instead of huge discounts, try intelligent strategies that do not demean the brand, but offer more value and incentive to the customer just as well. For example, you can bundle two items at a slightly lower price than what they would cost to buy individually.

Make Your Discounts Rare and Limited

We always covet that which is rare, otherwise, diamonds and rubies would just be considered beautiful rocks. Using the same principle, you should make your discounts rare and limited, so that people actually look forward to them with eager anticipation.

Reserve Special Discounts for Flash Sales

Consider the discounted flash sale to be an extension of the strategy mentioned above. When you combine the limited and rare nature of flash sales with discounts, it’s a winning strategy that smartphone sellers have been using with amazing success for years now. Flash sales can be an important part of your strategy when you are looking to encourage customers to check out your store and what you have to offer.

Offer Discounts or Bundles as Rewards

If a customer is loyal, then they should be rewarded, and there’s no better way to reward them than to offer them a heavy discount on their next purchase from your brand. It serves the needs of both you and the customer while creating a sense of belonging in the customer’s mind. That’s just one of the many strategies for using discounts as rewards for mutually beneficial actions.

  • Offer small discounts to everyone who shares the company posts/page x number of times on social media outlets
  • Get new leads by giving them a discount for signing up for your email newsletters
  • Encourage loyalty by giving your customers exchange offers e.g. exchange the old stuff for a discount on the newer products

The idea behind any discounting strategy should always be to provide value to the customer, without devaluing your own brand, product, or profits in any way. It should create a loyal following of customers, rather than creating disgruntled customers and a devalued brand with a poor reputation.