Store coupons are of two types.
(1) Coupons that buyers can use without restrictions, that is, as long as the order amount is greater than the coupon face value, the buyer can use the coupon. For example, the coupon face value is $5, and it can be used when the order amount is greater than or equal to $5.01.
This type of coupon has a low threshold for use and can improve user stickiness and return rate. Buyers have a high usage rate after receiving the coupon, especially to attract new buyers to place orders, which can significantly improve the order conversion rate. However, sellers should pay attention to setting it according to the price of the goods in the store and the profit margin. For example, if the price of some small goods in the store is $5.5, it is not appropriate to issue a $5 coupon at this time, because the buyer is very likely to only spend $0.5 to purchase the goods and will not buy more.
(2) Coupons that can only be used when the buyer’s order amount reaches a certain requirement. For example, the coupon issued has a face value of $5 and the condition for use is that the order amount is at least $30. This can avoid the phenomenon of excessive profit margins on low-priced goods, and can also increase the average order value and stimulate buyers to buy more.
According to data from the AliExpress platform, the effect is better when coupons with and without use conditions are issued together. Coupons without use conditions can be set according to their own affordability. The larger the amount, the easier it is to stimulate buyers to place orders. Coupons with use conditions must have a discount amount of at least US$5 to be attractive to buyers.