Discount Pricing Strategy: 16 Examples and Tips [2026]

A discount can win over a first-time shopper, clear a season’s stock or get a stalled cart to checkout. It also reaches shoppers who’d have paid full price, so 15% off can pay for itself in one store and lose money in another.

This guide covers the types of discount pricing, how to calculate a discounted price and what it costs your profit. You’ll also see what A/B tests on sites using Wisepops show about discount size, and discount pricing strategies with examples from online stores.

In this post:

• What is discount pricing?

• Types of discount pricing

• How to calculate a discounted price and its cost

• How big should a discount be?

• Discount strategy tips

• Discount pricing strategy examples

• Alternatives to discounting

What is discount pricing?

Discount pricing is a strategic use of different discount types to support business growth. Stores use these campaigns for boosting sales, acquiring new customers, clearing out inventory, or increasing customer lifetime value.

The word “strategic” is key for effective price discounting in ecommerce and retail. A business needs to be aware of the reputation damage and profit losses that may occur if discounts are applied randomly or too heavily.

Discount pricing, also called discounted pricing, covers every way a store offers price discounts: codes, sales, bundles and rewards.

Discount pricing is used for five main reasons:

• Acquire new customers with a limited first-order offer that lowers the risk of trying a new brand.

• Clear stock that is seasonal, overproduced or near the end of its life.

• Increase order value with bundles, tiered offers and free shipping thresholds.

• Reward loyalty from repeat or high-value customers through loyalty programs, without lowering prices for everyone.

• Fill slow periods and peak events, such as Black Friday, when shoppers expect a deal.

Types of discount pricing

The main types of discount pricing are percentage off, fixed amount off, BOGO, bundles, volume pricing, free shipping, seasonal sales and loyalty rewards. They differ in what the customer gets and what they cost you.

The table shows each type and the risk that comes with it:

High-low pricing combines these: a store keeps regular prices most of the time and runs short promotions in between. A loss leader goes further, pricing one popular item below cost to bring shoppers in for the rest of the catalog.

Introductory pricing offers lower prices to new customers for a limited period, such as a launch month or a first subscription box. The first-order and subscription examples below both use it.

For code formats that suit each type, see these discount code ideas.

How to calculate a discounted price and its cost

To calculate a discounted price, multiply the regular price by what’s left after the discount: discounted price = regular price × (1 − discount %). The cost to you is the discount itself, which comes out of your profit while product costs stay the same.

Here’s how both work on one $80 order with a $40 product cost:

A fixed discount works the same way without the percentage: $80 − $10 = $70. At a 30% margin, the same 15% off needs 100% more orders, so you’d have to double sales to stand still.

The break-even formula assumes every buyer gets the discount. When some buyers would’ve paid full price anyway, the useful question is how many of them a discount can absorb. You can check both in the calculator below:

The last result explains why targeting changes the economics of a discount. A code shown only to first-time visitors reaches fewer people who were already going to buy, so more of its cost turns into new orders.

When pricing discounts, set a margin floor first, such as 10% profit per order after shipping and fees. Then increase the discount in the calculator until profit per order reaches that floor.

How big should a discount be?

The most common discount size Shopify stores use to convert new customers is 10%, followed by 20%. That’s what we found in our study of 500 mid-sized and large Shopify stores, where 74% offer first-time shoppers a discount.

Compared with our previous study, more stores now open at 10% off and fewer at 20%:

The other 26% offer none. On sites using Wisepops, 10% was also the most common figure in discount popups this past year. It appeared about three times as often as 15% or 20%.

Do bigger discounts convert better?

Only slightly. In A/B tests on sites using Wisepops, an extra 5 to 10 points increased click or signup rates by a median of 7%. The discount cost per order grew far more.

We looked at tests where the variations differed only in discount size, such as 10% against 15% or 20% against 30%. Each ran its variations at the same time, with at least 1,000 visitors in each.

The cost side moved much further. Going from 10% to 15% off increases the discount cost per order by half, while the typical response gained about 7%.

That matches the calculator: a deeper discount needs many more orders to pay for itself.

It’s also worth testing discount types by product, since a bundle may suit one range and free shipping another.

Percentage off or a fixed amount?

A percentage usually sounds bigger on low-priced items, and a fixed amount on high-priced ones. Our popup personalization study found the same split.

The type of offer can matter more than its size, too. Zamnesia, an online smartshop, tested a free-product welcome offer against a flat €10 discount. The free product reached a 15.8% engagement rate, against 7.2% for the discount.

Before you pick a size, run your own numbers through the calculator and test the result against a smaller discount.

Discount strategy tips

An ecommerce discount strategy works best when each offer has one goal, one audience and an end date. These practices help keep it profitable:

Risks of discounting too often

Using discounts too frequently or predictably can create a culture of waiting for discounts among your customers. Each risk has a habit that keeps it in check:

How to promote discount offers

A discount only works if the right shoppers see it at the moment they decide:

• Onsite campaigns: popups, embedded forms and the onsite feed reach visitors already browsing.

• Email and SMS: subscribers get early access, reminders and last-chance messages.

• Ads with matching codes: repeat the ad’s code on the landing page.

• Product and cart pages: a short note next to the price reaches shoppers at the point of purchase.

Discount pricing strategy examples

These discount pricing examples come from online stores, and most of the strategies work in physical retail too. They cover discount strategies for new customers, loyal customers and seasonal events:

1. First-order discount

2. Abandoned cart discount

3. Flash sale discount

4. Holiday and seasonal discount

5. Product bundling discount

6. BOGO (buy one, get one free)

7. Free product giveaway

8. Pre-order discount

9. Customer reactivation discount

10. Loyalty program discount

11. Discount based on spend or orders

12. Subscription discount

13. Mystery discount

14. Referral program discount

15. Black Friday pre-sale discount

16. Cyber Monday last-chance discount

First-order discount

A first-order discount lowers the risk of trying a new brand, which is why it’s the most common way stores convert new visitors. In our Shopify study, 74% of stores offer first-time shoppers a discount.

Pierre Hardy, a luxury footwear brand, gives first-time visitors 10% off and asks which product category they shop for. The answer lets the brand send product news that matches the visitor’s interest:

How to use a first-order discount

1. Create a welcome popup or a signup form with the offer.

2. Write a short welcome message that explains what the shopper gets.

3. Add the discount as a unique code, or apply it to the cart automatically.

4. Show the campaign to new visitors only, and exclude logged-in customers.

Abandoned cart discount

Extra costs are a common reason shoppers leave a full cart, so a discount at the right moment can recover the sale. It’s worth showing only to shoppers who are leaving with items in their cart.

KOOKAÏ, a fashion brand, shows an exit popup with a countdown and a discount to shoppers about to leave:

How to make it work

• Show the offer only to shoppers leaving with items in their cart, so buyers who’d finish anyway keep paying full price.

• Generate unique, single-use codes for discount popups and cart reminders, so the offer stays off coupon sites.

• Add a short deadline, such as 24 hours, so the offer feels tied to this cart.

Flash sale discount

Flash sales are limited-time offers, typically between eight and 48 hours, with significant discounts. The main goal of this discount pricing strategy is to move excess inventory and motivate customers to explore the store.

Charlotte Bio sells affordable cosmetics, with the most expensive item at about $20, so the brand runs flash sales only once in a while. This campaign gave 40% off all products for six hours, with the discount applied in one click:

Since much of Charlotte Bio’s traffic is mobile, the brand also made a version for small screens, following Google’s guidelines for mobile popups:

How to run a flash sale discount

• Announce the end time with a countdown timer, on the site and in email, so shoppers know how long they have.

• Apply the code to the cart in one click, since every extra step costs buyers in a short window.

• Keep flash sales rare, such as once every one or two months, so each one still feels like an event.

Holiday and seasonal discount

A seasonal discount pricing strategy ties offers to holidays such as Easter, Mother’s Day and Valentine’s Day. The occasion gives the discount a clear reason.

Customers often expect a holiday offer, and a short, dated one avoids training them to wait for a random sale.

Plume Paris, a fashion brand, runs a weekly popup with a new offer for each holiday. Returning visitors have a reason to check back:

For more seasonal ideas, see these sales promotion examples.

How to make it work

• Plan the calendar a few months ahead and pick the holidays that matter to your customers.

• Match the offer to the occasion, such as gift sets for Mother’s Day or bundles for back to school.

• Set an end date and keep it, so shoppers learn that the offer really ends.

Product bundling discount

Product bundling combines a few items into a single unit sold at one price. This approach can increase ecommerce sales by increasing the average order size.

Here are types of product bundling to consider:

• Pure bundling: you choose the items in the bundle.

• New product bundling: the bundle includes new arrivals.

• Mix and match bundling: customers choose the items themselves.

• Excess inventory bundling: slow-moving or seasonal items go into the bundle.

• Cross-sell bundling: complementary products from different categories.

MakerFlo, a crafting supplies store, tells shoppers about its custom bundle and shows how much they save:

How to price a product bundle discount

• Price the bundle above your average order value, so it increases the basket.

• Show the saving as an amount, such as “save $15”, next to the bundle.

• Pair slow-moving items with bestsellers to clear stock without a sitewide discount.

BOGO (buy one, get one free)

Online businesses use the BOGO (“buy one, get one free”) discount strategy for special occasions and to clear out slow-moving inventory. Typically, the complimentary item is replenishable, like shampoo or lip balm, or something that complements a more expensive product.

Other types of BOGO deals include:

• Buy one, get one half price

• Buy one, get a free sample

• Buy one, get a free product from another category

• Buy one, get X% off the second item

Blume, a self-care brand, uses this discount pricing strategy on special occasions. Here, the brand highlighted a “buy two, get one free” offer as part of its anniversary celebration:

How to run a BOGO discount

• Check the margin on both items first, since a two-item BOGO equals 50% off the pair.

• Choose a free item that costs you little or brings the customer back, such as a refill or a sample of a new line.

• Run the offer for a short period around an occasion, so it keeps its appeal.

Free product giveaway

A giveaway works well for retail businesses and combines onsite and in-store marketing. The idea is to give away a product, or a chance to win one, that can only be claimed online.

4murs, a wallpaper and home decor retailer, showed banners in its stores promoting a giveaway of two pieces of furniture. A QR code on the banner led to the website, where a signup form for the giveaway appeared:

The campaign collected 88 emails in a short period, and over 80% of the people who scanned the code entered the giveaway. For more creative campaigns, see the popup contest results.

How to make it work

• Ask for one or two details in the signup form, such as an email and a date of birth.

• Show the form only to visitors who arrive from the QR code or campaign link.

• Choose a prize that appeals mainly to your customers, so entries come from likely buyers.

Pre-order discount

A pre-order discount offers a reduced price to customers who buy before launch day, when the product isn’t available yet. This strategy is popular in ecommerce, especially with DNVB brands that adopt the pre-order business model.

Although pre-order discounts limit future promotion possibilities, they reduce overproduction and provide quick profits, helping support marketing and other needs.

Asphalte is a fashion brand that makes only the pre-ordered number of items, so it gives discounts for buying earlier:

A launch can also sell without a discount. Black Ember announced a limited-edition product to visitors already on its site and sent 2,059 of them to the product page in 21 days.

More ideas for launches: ways to promote a product.

How to make it work

• Collect waitlist signups a few weeks earlier, so you have an audience to send the pre-order offer to.

• Show the expected shipping date next to the discount.

• End the pre-order price on launch day, so early buyers get a real advantage.

Customer reactivation discount

The goal of this discount strategy is to re-engage customers who have not visited your website or opened your emails in a few months. A special discount can motivate them to return and make a purchase.

La belle-iloise, a canned fish brand with a mail-order catalog, shows each catalog customer their personal code once they log in to the site:

How to make it work

• Offer discounts on items customers bought before.

• Limit the offer to a short period, such as 48 hours, to create urgency.

• Show the offer on the site as well as in email, since many lapsed customers come back without opening one.

Loyalty program discount

This discount pricing strategy focuses on increasing the customer lifetime value. The goal is to offer a special discount to those who have just joined your loyalty program. It’s a nice way to greet a new member and encourage them to explore and buy your products.

Quandoo, a restaurant booking platform, gives away double loyalty points after a booking to encourage repeat reservations during the holidays:

How to use a loyalty program discount

• Offer points or perks instead of a price cut, since points are only redeemed on a future order.

• Give new members their first reward right away, so joining feels worth it.

• Use double points in slow periods, when a sitewide sale would cost more. More ideas: ways to build customer loyalty.

Discount based on spend or orders

Consider this discount strategy to reward high spenders or VIP customers. By giving a special discount to those who made, say, ten orders, you can make them feel valued and encourage future purchases.

Aime, a skincare brand, gives shoppers extra loyalty points and rewards for spending more, which increases order value:

How to make it work

• Use store data such as order count and total spent to show exclusive offers only to customers who qualify.

• Set the threshold just above your typical customer’s spend, so the reward asks for one more order.

• Name the offer after the customer’s status, such as VIP, so the customer sees it as a reward.

Subscription discount

This discount pricing strategy suits subscription businesses. By giving a good deal on multiple orders along with an extra incentive, you can boost email list building and sales.

Yespark, a parking subscription service, offers a discount on the first monthly parking order:

Consider tying subscription offers to occasions that matter to your audience. A coffee seller, for example, might use National Coffee Day (September 29), National Espresso Day (November 23) or Peppermint Latte Day (December 3).

How to set up a subscription discount

• Discount the first deliveries only, then return to the regular price.

• Add a perk that isn’t a price cut, such as free shipping on every delivery.

• Show how to pause or cancel next to the offer, which makes signing up easier.

Mystery discount

This is a discount pricing strategy that ecommerce stores use around holidays and special occasions to make more interesting offers. Also, this is a creative way to engage both new and passive customers.

émoi émoi, a lifestyle clothing brand, uses a spin-to-win wheel that can reward shoppers with items, discounts or free shipping:

How to make it work

• Keep every prize within your margin floor, since every spin wins something.

• Weight the wheel toward low-cost rewards, such as free shipping or a sample, and keep the largest discount rare.

• Limit it to one spin per visitor, so shoppers can’t keep trying for the top prize.

Referral program discount

A referral discount rewards customers who bring friends, and gives the friend a discount on their first order. Shoppers tend to trust product recommendations from friends and family, so giving a discount for a recommendation makes sense.

DB Journey, for example, gives 15% off for the referral:

Creating a referral program is something you can do quickly thanks to apps. Here are some referral apps for Shopify.

How to run a referral program discount

• Make the offer two-sided, such as 15% off for the new customer and store credit for the referrer.

• Pay the reward once the friend’s first order ships, which keeps out fake referrals.

• Ask for referrals right after a purchase or a positive review.

Black Friday pre-sale discount

Many ecommerce businesses use this discount pricing strategy to accelerate email list building before Black Friday and generate more interest in the sale event.

The idea is simple: give a special, early-bird discount for buying on Black Friday. The only requirement is signing up.

Tikamoon, a solid wood furniture brand, ran this VIP popup ahead of Black Friday. One email field gives shoppers access to the sale’s offers before everyone else:

When the sale starts, you’ve already got a list to send it to. For more ideas, see these Black Friday popups.

How to run a Black Friday pre-sale

• Start collecting signups a few weeks before the sale.

• Tell subscribers exactly when their early access opens.

• Remind them on the day with an email and a message on the site.

Cyber Monday last-chance discount

The idea is to give a special, limited-time discount to registered customers who did not have the chance to buy on Black Friday. Stores often reserve it for subscribers or VIP members, which keeps the discount from reaching every visitor.

Ideal of Sweden offered subscribers a last-chance discount with a countdown timer:

How to make it work

• Keep it short, such as one day or a few hours, with a visible countdown.

• Make it different from the Black Friday offer, such as an extra discount on bestsellers.

• Show it to subscribers or customers who visited during Black Friday without buying.

Alternatives to discounting

The main alternatives to discounting are free shipping thresholds, early access, gifts and samples, and product guidance such as quizzes. They add value or answer a question the shopper has, so you keep your margin and the full price stays credible.

A no-discount strategy relies on offers like these:

• Free shipping thresholds. Nutrimuscle shows shoppers how much more they need to add for free shipping, then confirms when they qualify.

• Early access. First access to a launch or a sale gives subscribers a reason to sign up without a code.

• Gifts and samples. A sample of a new product costs less than a percentage off and introduces another item.

• Product guidance. Quizzes and comparison tools help shoppers choose, which answers the doubt a discount would only cover up.

Message wording matters here too. On sites using Wisepops, messages with “treat”, “exclusive” and “favorite” beat the site’s average click rate with no discount. You’ll find more in this list of power words.

FAQ

Is a percentage or a dollar discount better?

On low-priced items, a percentage usually sounds bigger, while on high-priced items a dollar amount does. The type of offer matters too: in a Zamnesia test, a free product drew more than twice the engagement of a €10 discount.

How much should a first-order discount be?

10% is the most common first-order discount, followed by 20%. In A/B tests on sites using Wisepops, a deeper discount increased response rates by a median of 7%. It’s cheaper to start small and test a larger amount against it.

What is the best discount pricing strategy for ecommerce brands?

The best strategy depends on the goal, but targeted offers usually cost less than sitewide ones. A small first-order discount for new visitors, rewards for loyal customers and short, dated events cover the main goals without training shoppers to wait.

What is the difference between discount pricing and promotional pricing?

Promotional pricing covers any temporary price tactic used to drive sales, including discounts, bundles, gifts and loss leaders. Discount pricing is the part of it that lowers the price itself, by a percentage or a fixed amount.

Do discounts hurt a premium brand?

Frequent, sitewide discounts can, because they teach customers that the full price is negotiable. Premium brands tend to limit discounts to first-time visitors or loyal customers, and to keep offers small, such as Pierre Hardy’s 10% welcome offer.

How can I offer a discount if I can’t show it on my site?

Brands bound by a minimum advertised price (MAP) policy often can’t display a lower price or a public code. The usual route is to gate the offer. Shoppers sign up by email or SMS, and the code arrives in their inbox instead of on the page.

A signup form can still say there’s an offer for subscribers without naming the amount. Check your brand agreements first, since MAP terms differ.

What if my discount offers stop working?

When a welcome offer converts less over time, the cause is often offer fatigue. Returning visitors have seen the same code many times. A bigger discount rarely fixes it, since our A/B data shows deeper discounts add little response.

Try a new reason to act instead, such as a gift, early access or a quiz. Show it only to visitors who haven’t seen the old offer. If you feel your store is too promo heavy, cut the number of sitewide sales first and keep targeted offers.

How do I stop discount codes from reaching full-price buyers?

Use unique, single-use codes, and show offers only to the visitors they’re meant for, such as new visitors or shoppers about to leave. Excluding logged-in customers and recent buyers keeps regular customers on full prices.