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The Right (and Profitable) Way to Discount Your Ecommerce Brand

Author

Max Sturtevant
July 11, 2025

The Inbox Newsletter

Hey it’s Max from The Inbox Newsletter.

[I will start this by saying you can function without discounts, but it is a lot harder and you must have an amazing product]

Let’s talk about the controversial (but critical) strategy almost every ecommerce brand needs to embrace from day one: discounting.

I know… “Discounts ruin brand value.”

But that’s BS, as long as you know how to do it right.

Key Takeaways:

  • Discounting is essential, but only when it's strategic.

  • Your acquisition offer is the most important lever in your funnel.

  • Copying generic offers like “10% off” isn’t going to cut it.

  • Test offers with real data using email pop-ups and profile properties.

Yes, You Should Discount Your Brand (Strategically)

Too many brands treat discounting like it’s a sin. But guess what?

  • AG1 gives $20 off + free travel packs + 2 FREE gifts if you buy from them…

  • Dr. Squatch gives 20% off the first order

  • Vuori, who NEVER runs site-wide sales, offers 20% off the first order.

Why? Because acquisition offers work.

They get people in the door.

Discounts aren’t about slashing your margins…

They’re about unlocking new doors for potential customers who otherwisr wouldn’t have been interested.

But these brands didn’t just slap on a random discount and call it good…

They’ve tested, iterated, and dialed it in based on the numbers.

Your welcome offer is the #1 lever in your ecommerce funnel.

Period.

The Wrong Way to Offer Discounts

Here’s what you don’t want to do:
📉 Throw up a 10% off pop-up and call it a day.
📉 Leave that same offer live for 2 years with zero testing.
📉 Blast the same code across every channel.

That’s not strategy and every day you keep running that offer you could be leaving money on the table.

You need to test what acquisition offer works best.

If you can find one that converts even 10% better… that’s a 10% decrease in your Cost Per Acquisition.

The Right Way to Create a Winning Acquisition Offer

Here's how to get real data on what works best, fast, and stop guessing:

  1. Create 2 email pop-up variations (in Klaviyo or your tool of choice):

    • One offering one offer (Ex. “$10 off”)

    • One offering a different offer (Ex. “10% off”)

  2. Add a pop-up A/B test showing half of your traffic the $10 OFF form and half of your traffic the 10% OFF form.

  3. Add a profile property to each pop-up when a customer opts in.

    • $10 OFF form submitters get tagged with Offer = $10

    • 10% OFF form submitters get tagged with Offer = $10

  4. Split your Email Welcome Flow based on that property.

    • Show each subscriber their corresponding offer in the first email.

    • Let the flows do the work.

  5. Wait 2-3 weeks and look at the data.

    • Who converted more?

    • Who spent more?

    • Who stayed longer?

  6. Repeat

That’s how you build a brand that grows with profit baked in.

Bonus: Offer Ideas That Work

Here are some of my personal go-to offer strategies:

🧴 Supplements? Bundle discounts that push subscriptions.
👕 Apparel? Dollar vs percent off, test both. You can also do free socks or blank tees with your first order.
🧪 Beauty / CPG? Free gift with purchase or kit bundles.

I have seen the most success with offering free gifts with purchase, but it has to be a good gift.

Find a product you have high margins on and offer ir for free with purchase.

Final Word

The brands winning today aren’t the ones who avoid promotions.

They’re the ones who test, optimize, and execute their promotions like scientists.

Use the pop-up + property split test and thank me later.

PS - this quick video shows you exactly how to do this in Klaviyo.

Email Inspiration Of The Day

Brand:
Eleat

Email Design:
https://drive.google.com/file/d/1KmNHNqzFuY2QINuwQaAm9FconNv4FL1x/view?usp=sharing

Notes:
Great, simple email here breaking down us vs them.

Us vs them sections may think salesy, but I’ve found them to work really well because they show the customer EXACTLY what they’re getting with you.

Reply to this email if you have any questions or further content you want covered.

Cheers,

Max

PS - We still have 1 spot for our WellSend offer. We will send 12 email campaigns every month for you completely hands off for 50% OFF our typical price. If interested here’s a doc explaining more + a book a call link at the bottom of the doc.