Raise your hand if you’ve ever clicked “add to cart” with the intention of waiting for the abandoned cart email with a discount code 🙋🏻‍♀️

This blog dives into why we’ve become so hooked on discounts, how this strategy has shaped the e-commerce landscape, and, most importantly, how to break free from the cycle of discount dependence without losing your customers. You’ll find strategies that go beyond the tired 15% off email opt-in—ideas that align with your brand’s identity while building loyalty, sparking repeat purchases, and creating moments your customers won’t forget.

Discounts may feel like an easy win, but let’s be real: today’s buyers are smarter, savvier, and harder to impress. While they might nudge a purchase in the short term, are discounts really the story you want your brand to tell? At best, they drive quick conversions; at worst, they chip away at your value, conditioning your audience to expect the next markdown.

Ready to rethink discounts and craft a brand story rooted in connection, not just conversions? Let’s get into it.

Why Discounts May Be Hurting Your Brand

Discount fatigue is real. When the same tactic is overused or becomes your primary strategy, it loses its effectiveness. Today’s customers are savvy. They know the playbook, and a basic discount no longer feels like a compelling reason to act.

So where are we feeling fatigued?

1. The Email Opt-In Discount Code

For many e-commerce businesses, the 15% discount email opt-in is seen as a quick win. It grows your email database, sets up potential conversions, and captures leads right at the start of the customer journey. While it’s intended to encourage purchases, it’s primarily about building a connection—a way to open a dialogue with your customer. However, a one-time 15% discount might convert a single purchase, but it won’t drive repeat business if that’s all your strategy offers.

2. Cart Abandonment Discounts

Shoppers know to wait for that follow-up email offering 10% or 15% off if they leave items in their cart. While it can be an effective way to recover a lost sale, relying on this tactic conditions buyers to abandon their cart intentionally, undermining your full-price sales.

3. Seasonal Sales Overload

Black Friday, Cyber Monday, and endless holiday sales have saturated the market. Customers expect discounts during these times, making it hard to stand out or create urgency. It also devalues the products when buyers assume they’ll always get a better deal later, and only leads to pricing wars. The story you're telling: the only reason you should shop with me is because I'm 5% cheaper. is that the story you want to tell?

4. Loyalty Discounts That Lack Strategy

Discounts tied to loyalty programs can encourage repeat purchases, but if they’re too frequent or poorly structured, they risk devaluing the brand. Instead of driving loyalty, they can become just another discount expectation.

Get Intentional With Your Discount Strategy

This is where the concept of intentionality comes in. Every strategy you deploy should align with a larger goal: building meaningful connections, creating brand loyalty, and adding value at every stage of the customer journey.

Discounts can be a tool, but they shouldn’t define your brand story. The opt-in discount is just one tool—it’s not a catch-all solution. Its purpose is to build your email list, yes, but also to spark an initial connection that you can nurture.

Similarly, the other strategies sprinkled throughout the customer journey—bundles, loyalty rewards, or personalized offers—aren’t meant to replace discounts altogether. Instead, they add depth to your brand experience, creating a holistic approach that serves different stages of the journey.

For example:

• The opt-in discount grows your email database.
• Loyalty rewards drive repeat purchases and long-term engagement.
• Bundles or free gifts increase average order value without slashing prices.

Each tactic has a role, and together they create a customer experience that feels thoughtful and intentional, rather than transactional.

But before we get into what to do instead of or in addition to the email opt-in standard, let's consider WHY we as buyers find discounts and sales so persuasive. Let’s dig into the psychology behind discounts and what it means for e-commerce businesses trying to stand out.

The Psychology Behind Discounts (and what it means for e-commerce businesses trying to stand out!)

Our response to discounts is rooted in psychology and human behavior:

• Discounts create an illusion of saving money – Even if the product’s actual value hasn’t changed, a price drop makes us feel like we’re getting a better deal.
• The brain perceives discounts as a reward – When we see a price drop, our brain interprets it as an opportunity to gain more value for less, triggering a sense of reward.
• Loss aversion fuels urgency – Humans are hardwired to avoid losses more than we seek gains. A limited-time discount taps into our FOMO and a limited-time sale makes us feel we’ll “lose” the opportunity if we don’t act quickly.
• Price anchoring skews our perception – When we see an original price next to a discounted price, our brain anchors to the higher price as the product’s true value. The discount then feels like a significant win, even if the original price was inflated.

Discounts also play into our desire for immediate rewards. Scoring a deal gives us a dopamine hit, making us feel accomplished and satisfied in the moment.

BUT relying on discounts too much can backfire:

• Erodes brand value – Frequent discounts chip away at a brand’s perceived value. When shoppers expect sales, full-price purchases become rare, cutting into both profits and brand identity.
• Shrinks profit margins – For small e-commerce businesses, tighter margins make it harder to scale and stay afloat.
• Leads to price wars – In a crowded market, brands will compete on cost instead of quality or experience. It’s a tricky balance: use discounts strategically or risk eroding the very foundation of your brand.

HOWEVER, there are other ways to reward our brains that cater to dopamine hits, that also separate us from our competitors WHILE gathering data, and without cutting into your margins.

What are the alternatives to discounts?

Personalized Offers

Use customer data to create personalized discounts or rewards. Tailoring offers based on purchase history or preferences can make discounts feel exclusive and thoughtful.

Loyalty Programs

Reward repeat customers with points or perks that encourage long-term engagement without always slashing prices.

Bundling and Upselling

Instead of reducing prices, offer value through bundles or upsell strategies. For example, “Buy two, get one free” promotions increase average order value while maintaining margins.

Focus on Experience 

Shift the focus from discounts to enhancing the customer experience. Free shipping, excellent customer service, and thoughtful packaging can create a sense of value without cutting prices

Your brand is so much more than a price tag. Want to ditch the discount fatigue? Pick an alternative strategy that you align with and stand behind it.