It just takes one extra step to grow your e-commerce sales, but is it worth it?

In the fiercely competitive world of e-commerce, attracting customers and driving sales can be challenging. Many brand owners face the temptation to resort to massive discounts and promotions to entice buyers and stay ahead of their competitors. While this strategy may provide a temporary boost in sales, it comes at the risk of compromising brand value in the long run. There are consequences of excessive discounting because as a brand owner should you be sacrificing brand value for the sake of a sale?

 When facing competitors flooding the market with cheaper products, it may seem like the only way to stand out and attract customers is through heavy discounts. This is especially true if your customers come mainly from e-commerce marketplaces like Shopee and Lazada . Even though discounts will mostly drive your sales up this strategy can lead to long-term challenges and may not always result in sustained growth. 

Firstly, it conditions customers to expect discounts at all times, making them reluctant to make a purchase at full price. Secondly, the brand's sales growth becomes inconsistent, with sales surges during promotional periods followed by dips once discounts end. Lastly, the practice of offering deep discounts can erode profit margins, sometimes even leading to losses on each sale, making it an unsustainable business model. 

It's not just small brands that are doing this, well-established brands have long been part of this trend when driving up their e-commerce sales. We look at examples of well-known brands like North Face and Converse, who have been running constant flash deals and promotions. While these brands may see short-term sales spikes, there are questions about the long-term impact on their brand equity and customer perception. T

he key to building sustainable growth and maintaining brand value lies in fostering authentic connections with customers. Instead of relying solely on discounts, e-commerce brands should consider embracing more human elements in their strategies. Omni-channel approaches, such as live selling and influencer partnerships, offer opportunities for brands to engage with their audience on a deeper level, establishing emotional connections and building brand loyalty.

Sacrificing brand value for immediate sales growth can lead to conditioned customers, inconsistent sales patterns, and reduced profit margins. To strike the right balance, e-commerce businesses should focus on building authentic connections with customers through innovative strategies that go beyond discounting. By fostering brand loyalty and establishing emotional bonds, brands can achieve sustainable growth without compromising their inherent value.