Online shopping advantages and disadvantages of discount coupons

of over 58.6 billion euros, a figure that tends to increase over the years, as users have understood the advantages of purchasing goods online in terms of time and sometimes even savings. In fact, compared to the previous year, e-commerce has seen an increase of six percentage points.
It has now become common practice to conduct various online searches before purchasing a specific item to understand where it costs less.
Many Italians make their purchases comfortably at home, convinced that they enjoy significant savings. This is generally true, yet the phenomenon of the so-called abandoned cart is becoming increasingly common. The abandoned cart is a rather common problem for companies that sell online, as users may add an item to their virtual cart but do not proceed with the purchase. The idea that this phenomenon occurs at the checkout of a physical store is almost impossible, because the decision-making process happens beforehand. In e-commerce, however, the choice to purchase a specific item almost always occurs at the moment items are added to the cart and the process is initiated.
It is therefore reasonable for companies to study an effective strategy to initially direct the interest of individuals towards the brand and, immediately, ensure the actual purchase, thus preventing the user from leaving the shop before completing the transaction. Clearly, the reasons why this happens are various and will be explained below.

What are the real reasons for cart abandonment before making a purchase?

The phenomenon of abandoned carts has always been a topic of debate among marketing experts. A non-completion of the purchasing process by the buyer is clearly a red flag for the company. The reasons can vary, and they do not always stem from a lack of interest on the part of customers, which is why it is important to pay attention to the issue:

  • the user's curiosity to see the actual price of the item of interest, without any intention of completing the purchase at that moment;
  • the item is appealing, but the registration process on the site is too cumbersome and complex;
  • shipping costs are too high, leading the user to prefer purchasing the item in a physical store as the economic benefits of buying online no longer exist;
  • the return conditions are unclear;
  • too long delivery times for receiving the goods at home.

These reasons are not always to be attributed to the same company, but it can certainly improve and streamline some of the procedures of its e-commerce.
A rather common practice in online commerce is the use of discount vouchers for customers. Essentially, it is clearly a great way to attract the attention of potential customers; however, it is necessary for the company to apply some good rules so that this tool does not have the opposite effect, that is, to drive the user away.
The distribution of vouchers is a very common mechanism, especially used in the United States, but in recent years, due to the economic crisis and the increase in e-commerce revenue, many brands in Italy have also implemented this procedure.
The reasons for using this promotional activity are mostly to increase revenue and facilitate the purchasing process, thus avoiding the abandonment of the virtual cart. Furthermore, it is currently often used as a means to get known by more users and thus attract their curiosity towards the product in question. Therefore, it is important, now more than ever, that the company uses this powerful tool in the best possible ways, without making some mistakes that do not guarantee an effective result in terms of efficiency.

Attract the user by using a discount coupon.

The discount voucher, also known as a promotional code, has gained increasing popularity in the world of e-commerce in recent years. Through an alphanumeric code, and not only that, the customer can take advantage of a promotion dedicated to them and/or a discount in terms of savings to be deducted from their spending. To date, due to the frequency of these vouchers, there are different types available:

  • voucher obtainable after a previous purchase;
  • voucher obtainable with a minimum spending;
  • voucher obtainable by subscribing to the newsletter on the official brand website;
  • voucher obtainable through the registration process on the company's website.

The promotional tool therefore aims to ensure that the customer secures a dedicated offer, while for the company, in addition to the previously mentioned advantages, it also aims to encourage customer loyalty and ideally secure a prestigious position in the mind of the future buyer. It is logical to think that a user, attracted by the use of this type of promotion, will use price as a discriminating factor. It is commonly believed that a significant discount, especially if it comes from a promotional code, is synonymous with low quality, and it is therefore the company's responsibility to dispel these prejudices by demonstrating the opposite. It is essential, therefore, that there is no abuse of these discounts so as not to harm the brand's image in terms of quality and value.

Discount voucher: how to obtain it

As previously stated, there are indeed many ways to capture user interest in one's brand at the expense of competitors. There is certainly no single, direct line that guarantees all of this, but generally, discount coupons follow these types:

  • classic discount coupon, which is an automatic discount applied at the final step just before purchase. The user does not need to enter any alphanumeric code to obtain the price reduction, which is why it is designed to encourage the buyer to actually complete the procedure without changing their mind at the last moment. In this case, the customer already knew the brand as they independently decided to browse the online shop.
  • manually downloadable discount coupon, which is a discount that the customer obtains independently, perhaps from the official website of the company or through other platforms (forums, social channels, etc.). In this case, the customer may not have personally known the brand and could be attracted by the discount.
  • discount coupon obtained through the official app of the relevant brand, which is a discount that encourages users to download the application by offering them promotional codes for future purchases. The company already occupied a place in the minds of the subjects, and the discount coupon is just a pretext for making a purchase.
  • discount coupon with a promotional code, which is an offer that is probably the most used by companies but has strong limitations if not designed correctly. It is good practice for the company not to take too much advantage of this type of marketing activity, as the user might postpone the purchase, confident that they will receive the same price reduction and treatment in the future.

It is easy to understand how there are indeed many discounts to apply to users who intend to make their purchases online, but these must be granted by companies in a measured way, only after careful marketing strategy. An excess of discount coupons can be counterproductive for the company and trigger in the minds of future customers a decrease in the perceived value of the brand in question.

The channels where you can distribute discount coupons.

In 2020, online commerce in Italy generated a revenue of over 58.6 billion euros, a figure that tends to increase over the years as users have understood the advantages of purchasing goods online in terms of time and sometimes even savings. Compared to the previous year, e-commerce saw an increase of six percentage points.
It has become common practice to conduct various online searches before purchasing a specific item to understand where it costs less.
Many Italians make their purchases comfortably from home, convinced that they enjoy significant savings. This is generally true, yet the phenomenon of the so-called abandoned cart is becoming increasingly frequent. The abandoned cart is a common problem for companies that sell online, as users may add an item to their virtual cart but do not proceed with the purchase. The idea that this phenomenon occurs at the checkout of a physical store is almost impossible, as the decision-making process happens beforehand. In e-commerce, however, the choice to purchase a specific item almost always occurs when items are added to the cart and the process is initiated.
It is therefore reasonable for companies to study an effective strategy to initially direct the interest of individuals towards the brand and, immediately, ensure the actual purchase, thus preventing the user from abandoning the shop before completing the transaction. Clearly, the reasons for this happening are various and will be explained below.

  • Email, communication via email is probably one of the first channels through which the company approaches the customer. Receiving a discount voucher via email has beneficial effects on the customer's mind because they believe they have received a private and unique advantageous offer.
  • Website, distributing a voucher through the company's official channel is an excellent strategy to increase views of the voucher and thus offer prestige to the brand. However, this type of communication is not always easy, as not all customers are aware that they can benefit from the discount by purchasing directly from the company's website.
  • Social Networks, this is certainly the most used method at the moment, thanks to the millions of users registered on various social channels (Facebook, Instagram, Twitter, TikTok) and the constant presence of many Influencers who showcase themselves to the world every day. Although the "company-influencer" pairing may seem quite simple, it is not an easy relationship. Choosing a public figure to promote a company is a rather complex activity, as the individual must fully have a profile that reflects and respects the values of the brand. It is therefore advisable to choose this type of communication carefully, especially when it comes to discount vouchers, to avoid creating the opposite effect in the minds of customers and diminishing the perception of millions of people.

Disadvantages of discount coupons

If up to this point we have talked about how to disseminate discount coupons and the advantages they provide, it is also important to remember that there are disadvantages to the constant use of this practice. A company has many ways to make itself known to customers and/or increase its revenue, one of which is the issuance of discount coupons. While in theory giving promotions to customers is certainly a positive thing, over time, excessive use of coupons as the main promotional communication activity is undoubtedly counterproductive for the brand.
When a user is uncertain about a purchase, they will not necessarily choose to buy the cheapest item among market offerings: many people associate low price with low quality. The same applies to discount coupons: not all users are attracted to this marketing strategy precisely because they believe that behind a discount lies a product of poor quality or at least of average quality. It is clear that the dissemination of discount coupons theoretically can lead to a temporary increase in revenue, but in the long run, if the company uses only this tool to attract user interest, it is clearly counterproductive. The reasons can be summarized as follows:

  • the customer, while interested in the product, postpones the purchase process because they are sure that they can enjoy the same discount at a later time.
  • reduction of brand value, and therefore the item of interest mathematically loses value, no longer offering the customer the prestige that comes from its ownership.
  • discounted price, especially if this is the constant. In people's eyes, the idea establishes itself that the price reduction largely stems from a poor quality of the product.


It is normal for all this to happen, especially for non-essential goods, but particularly for hi-tech items and goods considered luxury. The combination of low price/poor quality is especially pronounced for technological goods and secondary goods.
In theory, companies can therefore argue that discount coupons in online commerce have advantages but also disadvantages. It is in the interest of numerous businesses to understand when and how to take advantage of these promotions and when, instead, it is better to seek other strategies that capture the attention of future customers.

Author: Alessio Hocevar

Alessio Hocevar

CHIEF EXECUTIVE OFFICER

Doctor Alessio Hocevar, our expert in SEA (Search Engine Advertising), SEO (Search Engine Optimization), and SMO (Social Media Optimization), graduated in Communication Sciences and Technologies. He also deals with copywriting, email marketing, and video marketing. Certified in Google Ads Fundamentals and Google Shopping.

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