Definitely a no-brainer: every e-commerce store owners should use offers. When I say offers l mean things like coupons, deals, and discounts. Why shouldn’t you use them? Every time I see one it really makes me think. Hey I should probably get that since I can get it for a better price now, right? Well in most cases, offers have the chance to increase your revenue. But this isn’t the right approach for every store.

Today I’m going to teach you some tips and tricks on whether you should or shouldn’t use offers, when to use them and how to use them to your advantage. We have all seen some irresistible offers that made us buy stuff, so why shouldn’t this work for every store?

Will Offers Increase Your Revenue?

To answer this question really short, I’m going to sketch a picture. Imagine browsing a luxury and high-end website multiple times, with products that look expensive. Yet every time you visit the site, all items you see or click on is on sale. Would this give you the feeling this brand actually is a high-end brand, or would you think that the products are overpriced on purpose and lose the interest in the sale?

This is one of the ways to destroy your brand’s name because it will ruin the image you want to create. Another thing to keep in mind is that if your margins are really tight, you should be careful when offering something like a discount. this will only cut further into your margins and it could eventually even make you take a loss. So on the other side, when you have high margins, offering daily sales might get you a great boost in sales because you have more space in what you offer.

Make The Right Decision

So this will make you have to choose which type of offer does work for your business (model), right? Well here are the types of offer models and their (dis)advantages. The best way to eventually choose between these types will be the result of experimenting a lot, so start small and check which works the best for you.

Types of Offers

So there are 4 main types of offers (all with their own variants), which are acknowledged by most e-commerce store owners:

  1. A percentage discount

Probably one of the most popular choices on the web to increase your revenue is the percentage discount. There is no way your using the internet but haven’t seen a percentage discount. This can be a 5%, a 10% or to really drives sales 20-25%. Another way to use it is to offer a way higher discount to move inventory that doesn’t move fast enough or needs to be liquidated.

2. A dollar value discount

A dollar value discount is where you get €25 off when you spend more than €100 in a store (as an example). This type of discount really works great because many people will have the feeling that they are wasting money if they don’t use it, because they will see this as 25 free dollars to spend in your store. Entrepreneur has even brought out a report that dollar value discounts vs percentage discounts have a 170% higher redemption rate!

An easy trick to keep in mind when deciding between a percentage or fixed amount discount for a specific product is the rule of 100. If your item is less than €100.00, use a percentage discount; if higher, use a fixed amount discount. This is a psychological trigger that will result in the highest perceived value for your customers.

3. Freebies

Getting more stuff for free after you have completed a purchase is great, right? Freebies are gifts you give customers after placing an order. For example; when they purchase a table they will get a table cover for free. This will encourage people to purchase something. Combine this with a flash sale (a limited time only deal) to get even better results. This will add a sense of urgency which will make the customer more likely to buy on impulse.

4. Free shipping

This might be one of the most discussed ways to increase revenue with an offer. Offering free shipping can really change the way people think and purchase. There are 2 different options when offering free shipping; free shipping on any purchase or free shipping with a minimal purchase amount. If your margins on all items are high, offering free shipping with no minimal purchase amount can increase your revenue by selling more items. But when your margins are small, it’s better to use the minimal order value free shipping. By doing this you will encourage customers to purchase more items every order.

Read the article below if you want to know more about how to use pop ups to use your coupons. This also includes how to use freebies in a different way!

Pop-up Lead Generation

So I hope I have learned you everything you need to know about today’s subject. If you know I have missed a type of offer, or just want to share how you increase your revenue feel free to let us know in the comment section below.


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