Common Types of Discount Promotions for Online Retailers{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}D0{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}BF{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}D1{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}80{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}D0{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}BE{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}D1{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf}86.jpg

A few years ago, there was a negative stigma attached to coupons and discounts. However, things have changed, and retailers are now using discounts and coupons to drive sales. Here are the common types of discount promotions to increase your sales.

Percentage-Based Discounting

The most common discounting option for online retailers is a percentage-based discount. You could use price cuts as incentives to customer retention and repeat purchases. However, it’s hard for a brand to offer 50{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf} discount or more to clear its old inventory. All retailers should use coupons in different ways. Retailers with higher profit margin can afford to give discounts of up to 15-25{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf} frequently. However, those with low-profit margins should provide less frequent sales promotions and smaller discounts not exceeding 10{a685def12e49a56e096d49f24cd89afe50f4858ebeb5ab7b9db36b6f849a68cf} of the product value. However, you can offer clearance discounts to get rid of excess inventory. Below are the common types of promotional discounts to drive your online sales.

Threshold Promotions

It is an offer accessible only if your shopping exceeds a certain threshold. It encourages shoppers to buy more items and keep coming back. A recent study has revealed that online shoppers would purchase enough to get a threshold discount. For example, e-commerce marketplace such as Groupon would want to offer a threshold discount on orders of $80 and above. As such, it’s easier to encourage shoppers to buy more goods.

Dollar Amount Discount

Online retailers can give dollar amount discount instead of percentage discounting. That provides them a static discount amount that they can use to control their product margin. Moreover, you can position these offers as a credit, which can increase your promotion redemption rates. Dollar amount discount is a great option for any e-retailer looking to have a static discounting amount.


One of the greatest ways to drive sales and add value to the shopping experience is to offer gifts along with purchases. You could give a small promotional product as an incentive to quality to make sure your online shoppers come back to your store. Promotional products could be anything that adds value to your customers including items that are taking longer to sell. Such products are good at closing sales conversions. A promotional product can be the needed value to push customers to make repeat purchases. For example, online shoppers can offer a promo code that adds a free item to the shopping cart automatically. However, if you don’t have a promo code, let shoppers know that you’ll include a free product in the order. Creating a unique promo order can go a long way to increase your sales.

Free Shipping

Free shipping is the most common discounting options that drives sales throughout the year. It is the number one criteria that online shoppers consider before making a purchase. In fact, free shipping works for nearly every shopper and can increase your sales conversions significantly. Often, cost of shipping depends on the weight and size of a shopping cart. As such, shipping costs vary across different online retailers. If free shipping fits your cost structure and profit margin, don’t hesitate to incorporate it into your e-commerce marketing strategy.

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