E-COMMERCE

By FedEx | First published: January 11, 2024    Updated: April 4, 2025

Online discounts are everywhere, all the time – but e-commerce business owners need to do more than slash prices. Find out how the right discount strategy can help you win customers and grow sales.

• Does your e-commerce business offer regular discounts and sales – but without the returns you’d hoped for?
• Most e-tailers target new customers and encourage customer retention with discount codes and price drops. Nowadays, online consumers see discounting as the norm.
• From loyalty programs to referrals and subscriptions, the right e-commerce discount strategy can help e-tailers drive revenue and sales all year round.

Who doesn’t love a good deal?

Between discounts for new customers, loyalty rewards, and blockbuster sale events, it’s hard to imagine anyone saying no to paying less. Businesses know this, which is why many offer discounts to win buyers over.

Small and medium enterprises (SMEs) in Asia Pacific offer regular deals to stay ahead in the competitive e-commerce industry. But with so many brands vying for e-commerce sales, how can your small business stand out?

Check out our cheat sheet for e-commerce discount strategies, and what to consider before running online promotions:

Using e-commerce discounts to stand out in Asian retail

Different discounts drive different outcomes. Some are designed to attract first-time buyers, while others promote repeat purchases.

Platforms like Hong Kong-based beauty and wellness site Strawberrynet offer tiered discounts. These cater to different customer segments instead of taking a one-size-fits-all approach.

Singapore-based fashion label Love, Bonito is one of many brands that offer an introductory 10% off your first purchase for new customers. Other brands use social media to tease flash sales or run a points and rewards system to help customers earn money off purchases.

8 types of discounts and how to use them

The nature of your business impacts your discount offerings. For instance, dropping prices or advertising sales goes against the positioning of many luxury brands, while those selling fast-moving packaged goods have stock to shift – and will discount often.

Here’s how you can leverage the most popular types of discounts:

1. Flash sales
2. Seasonal sales
3. Deals for newsletter subscribers and social media followers
4. Referral discounts
5. New customer perks
6. Loyalty rewards
7. Livestreaming or social commerce discounts
8. Bulk purchase prices

1. Flash sales

Sell products at a steep discount for a limited period. Sitewide flash sales are common on e-commerce platforms like Lazada, Alibaba, and Shopee.

These create urgency and have a high chance of going viral, making them ideal for businesses seeking the spotlight. They also get old or slow-moving inventory off your shelves.

2. Seasonal sales

Deals that coincide with occasions like Christmas and Valentine’s Day generate excitement and tap into emotions associated with certain holidays. To take advantage of customers’ holiday mood, plan sales that feature products themed around these holidays.

Other holidays where many businesses offer discounts are Diwali, Lunar New Year, and Golden Week in Japan.

In Asia, Double 11 or Singles Day, which happens on November 11, is one of the world’s biggest sale events. In 2024, a record 589 brands surpassed RMB 100 million (US$13.8 million) in Gross Merchandise Volume (GMV).

In 16 years, Double 11 has seen remarkable growth, with total transaction volumes jumping from ¥0.52 billion in 2009 to ¥1.44 trillion in 2024.

3. Deals for newsletter subscribers and social media followers

Offer discount codes to people who sign up for your newsletter or follow your social media accounts. This can help widen your reach.

Another reason to give newsletters a shot? They raise brand awareness and are 40 times more effective than social media for new customer acquisition.

4. Referral discounts

Let buyers become brand advocates and reward them for bringing in their friends as customers. This is ideal for businesses that want to use word-of-mouth marketing to connect with more people, including those whom traditional advertising may not reach.

5. New customer perks

Give potential buyers more reasons to support your brand. You can shave a certain percentage off the total of their first order, especially if they meet a minimum amount, or run a BOGO (buy one, get one) deal.

6. Loyalty rewards

Thank your most avid fans with lower prices, exclusive deals, gifts, or coupons for future purchases. Before rolling this out, decide how many purchases, or how much in terms of value, is needed to classify buyers as “loyal.”.

You can also adopt a tiered system with rewards that increase as customers buy more. This strategy is ideal for building long-term customer relationships.

7. Livestreaming or social commerce discounts

Shoppertainment increases visibility and reach, enables real-time engagement with audiences, and gives entrepreneurs the chance to showcase products in more detail. According to a TikTok whitepaper, it’s expected to be worth over US$1 trillion in Asia Pacific by 2025, with Indonesia showing the highest growth potential.

Some influencers and key opinion leaders also give out personalized discount codes to viewers and followers.

To help turn your viewers into customers, give them exclusive discounts. But watch out for potential technical issues and do a dry run before you go live.

8. Bulk purchase prices

Determine what counts as a bulk order and put a cheaper price tag on it. This is ideal for encouraging large buys, which helps you move inventory and makes logistics more efficient. And if you’re shipping in large volumes, don’t forget to consider freight shipping solutions that could save you money.

Which discounts should your business offer?

To hit on the right tactics and determine what type of discounts your business should offer, ask yourself the following questions:

1. What are my goals?

Clarify if you’re looking to offer e-commerce discounts to acquire new customers, reward loyal ones, drive revenue growth, increase brand visibility, or clear your inventory.

2. Who are my customers?

Analyze and segment your customer base. Do discounts align with their preferences and sensibilities? Are they all interested in special deals, or does this resonate with a certain demographic?

3. How will discounts impact people’s perception of my company?

Make sure your brand image aligns with the discounts you plan to offer. Luxury brands that rely on exclusivity may damage their image by holding large, frequent sales.

4. How will discounts impact my finances?

Check how the discounts will affect your profit margins. Can you afford to lower prices, and are the expected returns worth it? Your online promotions strategy should tally with your longer-term financial goals and contribute to the company’s sustainable growth.

5. Is this the right time for a discount promotion?

Time your promotions well and figure out how often to run them. For instance, you can ride the wave of seasonal sales to make the most of spikes in shopping behavior, but running promos too often can devalue your products and services in the eyes of consumers.

6. What discounts do my competitors offer?

Understand industry norms and what kinds of deals your competitors are offering to customers. In some cases, avoid going head-to-head with brands offering similar deals.

7. Can I handle the rise in demand?

Your inventory and order fulfillment capabilities must be able to keep up with the increase in sales. Receiving thousands of orders means nothing if you can’t pack and ship products on time, in good condition.

Discounts are great, but don’t forget the basics

Your inventory and order fulfillment capabilities must be able to keep up with the increase in sales. Receiving thousands of orders means nothing if you can’t pack and ship products on time, in good condition.

If you’re a new e-commerce business and need support with shipping, check out our offers for new FedEx customers here.

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