Coupons for Ecommerce Sites
How often have you gotten to the end of an ecommerce transaction, seen the box for entering a coupon code, and realized you don’t have one? If you’ve cancelled the sale, or worse - been the vendor who has had the sale cancelled, then you know how important coupon codes are becoming as incentives to close the sale.
A growing range of websites have emerged that are nothing more than index sites where cust0mers can swap and find codes for discounts, free shipping, and other savings for their online purchases. Wildly popular, these sites have sparked a debate on whether they represent a good or bad thing for the industry.
One the one hand, they do have an effect on both the profit margin and the affiliate commission. When a customer shares their 10% run-of-site loyalty code on one of these sites, that code can go viral in a matter of moments. The numbers can add up very quickly.
One the other hand, these sites drive new customers to online vendors at a reasonable cost. And because ecommerce transactions acquire much more information about a customer than, say, a cash purchase made at a storefront – each new sale brings future marketing opportunities.
While the debate continues, a smart way to enjoy the benefits of these sites as a vendor without too much of the bite is to carefully focus future coupon code offerings. Instead of blanket run-of-site percentages, try reduced shipping vouchers and BOGO (Buy One Get One) type of offerings in specific merchandise areas. And be sure to time limit all codes, so that they don’t become permanent fixtures on these sites.
