Ecommerce Coupon Marketing – Explained

The E-commerce industry has been becoming extremely competitive year after year. Coupons and discounts are massively revenue-driven methods that E-commerce stores prefer to leverage often. The article explains the Ecommerce coupon marketing strategies. You will get to learn a lot of things.

According to Statista, 92% of shoppers in the United States bought products and services by leveraging coupons in 2019. In addition to that, 70% of American adults searched for digital coupons according to the same survey. 

Reaching out to the maximum potential customers and selling more products are challenging tasks in the E-commerce industry. 

Let us first understand, what are coupons in the world of the internet?

What are the Coupons?

When E-commerce stores give offers and discounts in order to retain existing customers and attract new customers in the form of coupon code or coupon code link, it is called a coupon. 

E-commerce websites provide discounts, offers and free shipping to increase brand loyalty. Therefore, it is certainly good practice to leverage coupons for E-commerce stores. 

Coupons are not only used for discounting purposes but also it is used for maintaining a long-term relationship with customers. 

For instance, creating a coupon like “Get 10% Order in your two orders”. Customers will order another time to use the coupon code and to get a discount. By doing this, the total numbers of orders increase and we build long-term relationships with customers. 

Let’s jump into the benefits of leveraging coupons for E-commerce stores.

8 Benefits of Leveraging Coupon for E-Commerce Store:

  1. Easy to track
  2. Increases sales
  3. Clean old stock
  4. Easy to implement
  5. Increases customer loyalty
  6. Increment in new customers
  7. Retain existing customers
  8. Word of mouth promotions

1. Easy to Track

Tracking is easily possible as we can check how many customers have used coupons to buy products. 

2. Increases sales:

As we offer coupons, we think about the benefits of customers. It increases sales because customers get products at affordable and value for money pricing.  Impulsive buying is also possible as we leverage coupons.

3. Clean old stock:

It is a great way to clean old stock for E-commerce stores. As we clean our old stock, we can store new stock in the warehouse. 

4. Easy to implement:

There are many ecommerce frameworks that allow you to implement coupons easily for eCommerce stores.

5. Increases customer loyalty:

As we think more for customers’ benefit, our brand loyalty increases. Customers would become loyal as we offer products at affordable rates by applying a coupon.

6. Increment in new customers:

Coupons are a great way to attract new customers. These days, customers compare pricing online. As we offer coupon code, our pricing may be lower compared to other websites. 

This way, we can attract new customers. 

7. Retain existing customers:

Retaining new customers is equally important as acquiring new customers. By sending an email and SMS, we tell customers about the coupon code and interested customers would prefer to buy. 

8. Word of mouth promotion:

Delighting the customers with attractive offers and an outstanding shopping experience are the best ways to get Word of Mouth promotion. 

When we satisfy our customers and customers appreciate our service on social media or in-person, there will be a massive possibility of exponential growth. 

The best advantage among all these is the increment in new customers. Acquiring new customers sometimes take too much time and money as well. Coupons could be the best way to acquire new customers faster with less marketing expense.  

9 Effective Ways to Leverage Coupons and Increase Sales in E-commerce

  1. Social Media
  2. Email Marketing
  3. SMS Marketing
  4. Partnership with Influencer
  5. Partnership with Third-Party Payment Gateway
  6. Partnering with Banks
  7. Fear of Missing Out
  8. Get a Customer Feedback
  9. Holiday Seasons

1. Social Media

Social media platforms like Facebook, Instagram and even WhatsApp are extremely helpful to generate more sales by using coupons.

When it comes to social media, E-commerce stores generally leverage image and video content to promote their special offers and coupons. From social media, it is possible to attract new customers by running ad campaigns. Also, when we share coupons on our Instagram and Facebook page and we get organic traffic. 

  1. Email Marketing:

According to Super Office, the average email open rate from 2006 to 2019 was more than 20%. It’s a big number. Email marketing is useful to make long-term communication with customers.

Email marketing helps you to send an offer or coupon information to existing customers. Interested customers would definitely prefer to buy after reading an email. 

“Kindly submit your name and email address to redeem this coupon”

Besides, to collect more email addresses, tell the customers to submit email id and name to generate the coupon code. This is how you can leverage email marketing for promoting coupons.

3. SMS Marketing:

SMS Marketing is one of the highest conversion given methods to promote coupon code. According to 99Firms, the average open rate of text message marketing campaigns is 98%.  

Instant delivery, large reach and faster conversion are the top advantages of SMS Marketing. Therefore, while promoting coupons using SMS Marketing drives tons of traffic and generates sales as well.

4. Partner with Influencer:

Brand building takes time and therefore E-commerce companies have to spend tons of money on branding. 

Partnering with social media influencers helps E-commerce stores to grow faster because, with the help of influencers’ personal brand, we can promote our store with coupon code details. 

Based on the niche, we can identify who could be the best influencer for our E-commerce store. 

5. Partnering with Third-Party Payment Gateway:

Big E-commerce stores also prefer to make a partnership with third-party payment gateways such as Paytm, PhonePe, MobiKwik and many more.

“Get 10% Instant Paytm Cashback on Purchase” 

The partnership between an E-commerce store and the third-party payment gateway application builds a win-win situation for both E-commerce stores and the third-party app as well.  

When a customer wants to redeem a coupon, he has to install the third-party payment app. E-commerce stores also promote the coupon to their customers and the third-party app also promotes the coupon code of your store and tells their customers to redeem and buy products. Therefore, it creates a win-win situation. 

6. Partnering with Banks:

The same concept of partnering with the third-party app goes with partnering with the banks. 

“Get 10% Discount on purchase from HDFC Credit/Debit Card”

While partnering with banks, we allow customers to redeem coupons who have a bank account in a specific bank. If a customer does not have an account in a specific bank, he will not be allowed to redeem a coupon. 

It would be a win-win situation for E-commerce store owners and banks as well.

7. Fear of Missing Out:

“Hurry! Just 1 day left. Redeem the coupon and get a 20% discount.”

FOMO (Fear of Missing Out) is also one of the most effective ways to leverage coupons. Almost every E-commerce store leverages FOMO strategy to generate more traffic and increase sales. 

8. Get Customer Feedback:

“Kindly take a 1-minute survey and get 25% off”

Tell the customers to fill up the survey form. This way, E-commerce stores get feedback. Feedbacks are helpful to track the shopping experience and what are the things where the stores need to improve. Hence, getting customers feedback is also a revenue-driven strategy. 

9. Holiday Seasons:

Among all these effective strategies to leverage coupons for E-commerce stores, promoting coupons during holiday seasons has the highest potential to attract new customers. 

As per the holiday or festival seasons, E-commerce stores create the coupons. For instance,

  • If it is DIWALI, create a coupon like “DIWALI20” to offer a 20% discount.
  • If it is a NEW YEAR, create a coupon like “NEWYEAR20” to offer a 20% discount.


Coupons, discounts, free shipping and offers are extremely useful to skyrocket E-commerce business. While using coupons to promote business, make sure you maintain your excellent shopping experience to customers. 

I hope you have come to know a lot about E-commerce coupon marketing.

Thank you.

Also read: How to Start and Grow Cloud Kitchen Restaurant

Anuj Vohra

Hi , I am Anuj Vohra. I write articles about technology, economics, and business case studies at

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Anuj Vohra

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