Coupons: Clever marketing magic or profit-eating trap?
If you’ve ever wondered whether slipping a coupon into your sold items is the golden ticket to repeat business, you’re not alone. Sellers everywhere debate whether discounts build loyalty or simply train buyers to expect them. Let’s break it down.
✅ Why It Is a Good Idea
- Encourages repeat business: Buyers who receive a coupon are more likely to return to your store for another purchase.
- Builds loyalty: Coupons make customers feel valued and appreciated, which strengthens their connection to your brand.
- Boosts conversions: A well-timed coupon can turn a hesitant buyer into a repeat customer, especially if it’s framed as a reward for their purchase.
- Flexible marketing tool: eBay’s coded coupons let you control the discount amount and set expiration dates.
- Psychological impact: Coupons tap into urgency (limited-time deals), reciprocity (customers feel compelled to buy again), and perceived value (getting a “special deal”).
❌ Why It Might Not Be a Good Idea
- Reduced profits: Discounts eat into margins, especially if buyers would have purchased again without the coupon.
- Encourages unnecessary purchases: Coupons can tempt buyers to buy items they don’t really need, which may not align with your brand’s image.
- Customer confusion: If coupons are too frequent or generic, they lose impact and may even frustrate buyers who expect constant discounts.
- Risk of devaluing your store: Overusing coupons can make your items seem overpriced without them, training buyers to wait for discounts.
- Extra effort: Managing coupon campaigns requires planning, tracking, and monitoring performance to ensure they’re actually helping your business.
🎯 Best Practices If You Include Coupons
- Make them targeted: Offer coupons for related items (e.g., a discount on shoes if the buyer purchased clothing).
- Use expiration dates: Create urgency and prevent coupons from lingering indefinitely.
- Keep discounts modest: Small incentives (like 5–10% off or free shipping) can be enough to encourage repeat purchases without hurting profits.
- Position them as rewards: Frame coupons as a thank-you for loyalty rather than just a discount.
- Track performance: Use eBay’s Seller Hub reporting to see if coupons are actually increasing sales.
👉 The Bottom Line
Coupons can be a powerful tool—but only if you’re the one steering. Use them sparingly, strategically, and with clear goals, and they’ll reward you with loyal buyers and repeat sales. Overdo it, though, and you risk turning your store into a discount depot. For now, I’m keeping my foot on the brake pedal, saving coupons for the moments when they’ll really shine.