Coupon codes have become the norm in today’s e-commerce ecosystem.As the competition among brands, online shopping platforms and mobile applications get tougher and tougher, coupon codes have inevitably become one of the most popular marketing tools. It is obvious that coupons provide a host of benefits to brands and customers alike, but we need to dive deeper in order to understand why they have become so popular and why they are so essential for e-commerce. So, what makes coupon codes so indispensable for e-commerce?
Why Coupon Codes Are the Backbone of E-Commerce
Coupon codes have become the norm in today’s e-commerce ecosystem. As the competition among brands, online shopping platforms and mobile applications get tougher and tougher, coupon codes have inevitably become one of the most popular marketing tools. It is obvious that coupons provide a host of benefits to brands and customers alike, but we need to dive deeper in order to understand why they have become so popular and why they are so essential for e-commerce. So, what makes coupon codes so indispensable for e-commerce?
What is A Coupon Code?
Before we go into detail, let’s define what we mean by a coupon code. Coupon codes cover all kinds of discounts you can get on a given product or service. So, in addition to the special discount codes offered by online shopping platforms, coupon codes can also include the automatic discounts you get when you add a product to your cart without having to enter a code. We can also mention mobile coupon codes, which have become much more popular in recent years. These mobile coupons are usually distributed via the mobile app of a brand or an online shopping platform and can be used for in-app purchases only.
Why Coupon Codes are Crucial for Consumers
Coupon codes are one of the most influential shopping tools for consumers and brands alike. But first, let’s focus on their advantages for customers.
No customer can say no to getting a good bargain on a product. So, for customers who are always on the lookout for the best offer, coupon codes are the golden ticket. According to Once Coupon A Time, an international online coupon platform, customers need coupon codes to try new products and brands in addition to save money while shopping. In other words, for customers who want to feel like they are earning money by spending money, coupon codes are a great tool. After all, who doesn’t want to get a good bargain on their fashion haul, right?
Of course, what makes coupon codes so attractive for customers is that they get discounts on the products they have been planning on buying. However, given today’s financial difficulties, coupon codes are here to play a much more crucial role. In the post-pandemic recession, customers need discounts to afford their basic needs, at least they need to know that they are doing their best for their budget by using some coupons. In short, consumers need encouragement to put their hands in their pockets. There are even some countries who distribute coupon codes to their citizens in a bid to encourage them to spend money, which is required to get the economy on its two feet.
The Importance of Coupon Codes for Online Stores
Given the tough competition in the e-commerce ecosystem, offering coupon codes to customers help online stores improve their competitive edge. Coupon codes help them improve their brand recognition, attract potential customers, retain existing customer base, deplete stocks, promote new products… The list goes on. Given that about 97% of online shoppers are on the lookout for a bargain, online stores don’t really have a choice. They are simply supplying for the demand. Having a look at the most popular e-commerce platforms in the US, like Amazon, Macy’s, Target, Best Buy and AliExpress, we can see that coupon codes are everywhere.
There is no limit to what coupon codes can do for an online store. Given that even free shipping is enough to increase the likelihood of a purchase by five times, it’s not really possible for an online store to survive in this ecosystem without a solid coupon code strategy.
In summary, coupon codes offer a host of advantages for online stores as well as for customers. However, there is no doubt that coupon codes are going to be the lifeline for both customers and online stores in the economic climate of the post-pandemic era.