Types of Discounts: Why Some Work, Some Fail, and What Shoppers Really Respond To
Learn the psychology behind types of discounts, the risks of overusing them, and how to build a discount strategy that boosts sales.
Lichen Zhang
Oct 14, 2025 · 17 min
We're going to explore what it really means to launch an online store, sharing insights, tips, and a healthy dose of reality, all aimed at making your journey smoother and more successful.
Lichen Zhang
Oct 14, 2025 · 17 min
Lichen Zhang is the co-founder of Simple Bundles, where she leads product and design. She has over 7 years of experience in ecommerce SaaS, previously contributing to industry leaders like Faire (wholesale marketplace) and Smile.io (loyalty).
You've got that spark, that brilliant idea, maybe even a physical product sitting right next to you. The digital world is calling, promising freedom, reach, and the sweet satisfaction of building something of your own. Sound familiar? If you're nodding along, you're in good company.
We're going to explore what it really means to launch an online store, sharing insights, tips, and a healthy dose of reality, all aimed at making your journey smoother and more successful.
Before you even think about domain names or color palettes, pause. Seriously, hit the brakes for a moment. What's the real reason you want to do this? Your "why" isn't just a fluffy mission statement; it's the bedrock of your entire operation, the fuel for those late nights, and the compass guiding your decisions.
This is a fundamental question. Are you driven by a genuine passion for a specific product or craft? Maybe you're an artist, a baker, a crafter, or someone who just adores a particular niche. That passion is a powerful motivator! It makes the work feel less like work and more like a joy.
Or, are you solving a problem? Perhaps you've noticed a gap in the market. "Gee, I wish someone made a reusable coffee cup that also kept my tea hot for hours and had a built-in snack compartment." (Okay, maybe not that specific, but you get the idea.) Identifying a problem and offering a solution is a direct route to customer engagement. People actively seek solutions to their pain points.
The sweet spot? Often, it's a blend of both. You're passionate about a solution, or you found a problem within your passionate pursuit. Dig deep here. Your "why" will define your brand, your message, and ultimately, your staying power.
"I want to sell everything!" is a common, understandable, and often ultimately unsuccessful first thought. While Amazon can do it, you, my friend, are not Amazon (yet!). Trying to appeal to everyone usually means appealing to no one in particular.
A niche is your specific corner of the market. Instead of "clothing," think "sustainable bamboo activewear for busy moms." Instead of "home decor," consider "minimalist, handcrafted ceramic planters for urban dwellers."
Why does this matter?
Don't be afraid to go narrow. In a vast ocean, being a big fish in a small pond is often more profitable than being a tiny fish in the entire ocean.
Is this a side hustle to earn some extra cash for your coffee addiction (entirely valid, by the way)? Or is this your grand plan, your escape from the 9-to-5, your empire-in-the-making?
Understanding your long-term vision helps you make crucial decisions from the outset.
There's no wrong answer here, but being honest with yourself early on will prevent burnout and misaligned expectations down the road.
Entrepreneurs often start their e-commerce business with dropshipping because it lowers the barrier to entry. With this model, you don’t need to purchase large amounts of inventory upfront, and you can quickly test what products resonate with your audience. But while dropshipping makes it easy to sell products, it also comes with challenges like thinner margins and less control over shipping speed and quality. This is why having clear pricing strategies, strong supplier relationships, and a well-designed e-commerce website becomes essential if you want to scale your online business sustainably.
Once your e-commerce store is set up, the real growth depends on how you build and engage your social media customer base. Marketing strategies like influencer collaborations, targeted ads, and storytelling through content can help you reach new customers and foster loyalty. Unlike a physical storefront, your online business has no foot traffic—you have to create it. The good news is, with the right digital tools, you can reach people at a scale that traditional retail never could, positioning your store as more than a place to sell products but as a brand that customers trust and return to.
This is the planning phase, the un-glamorous but utterly crucial part. Think of it as laying the foundation for your dream house. You wouldn't skip the blueprints, would you?
You think you know, but do you really know? Market research isn't just about demographics (age, gender, location). It's about psychographics: their interests, values, pain points, aspirations, and online behavior.
Tools like Google Trends, social media insights, and even simply talking to potential customers can provide invaluable data. This isn't just a survey; it's detective work to truly understand the people who will (hopefully!) be buying your products.
Don't be afraid of competition; embrace it! Competitors prove there's a market for what you're selling. But more importantly, they offer a free education.
Analyzing competitors isn't about copying; it's about learning, identifying gaps, and figuring out how you can differentiate yourself and do it even better.
Where will your products come from? This is a huge logistical and financial decision.
There are also hybrid models! Maybe you dropship some items but handmade your hero product. Choose the method that aligns best with your product, your vision, and your financial comfort level.
"A business plan? For my little online shop?" Yes! It doesn't need to be a 50-page corporate document. Even a simple, one-page business plan (often called a Lean Canvas) can bring immense clarity.
It should cover:
This isn't just a formality; it's a living document that forces you to think through the practicalities and potential roadblocks. It's your roadmap, not a rigid set of rules carved in stone.
Ah, the digital home for your products! This is where many people start, but it really should come after the groundwork. Your platform choice depends heavily on your product type, tech savviness, budget, and desired level of control. There's no single "best" platform, only the best one for you.
Shopify is often the go-to for serious e-commerce. It's designed specifically for online selling.
Best for: Most product-based businesses looking for a dedicated, professional e-commerce solution with strong growth potential.
Etsy is a global marketplace known for handmade, vintage, and craft supplies.
Best for: Artists, crafters, vintage sellers, and those looking to test the waters with unique products before investing heavily in their own site.
WooCommerce is a free plugin that turns a WordPress website into a fully functional online store.
Best for: Tech-savvy individuals, those who already have a WordPress blog, or businesses needing a highly customized store without recurring platform fees.
These are website builders with integrated e-commerce capabilities. They prioritize ease of use and beautiful design templates.
Best for: Small businesses, artists, and service providers who want a beautiful, easy-to-manage website with e-commerce as a secondary or simple primary function.
Don't forget about other specialized options!
Research is key here. Take advantage of free trials! Play around with the interfaces. You'll quickly get a feel for what clicks with you (and what makes you want to pull your hair out).
Once you've chosen your platform, it's time to deck out your digital digs! Your online store is your shop window, your sales assistant, and your brand ambassador, all rolled into one. It needs to look good and, more importantly, work well.
Think like your customer. Is your site easy to navigate? Can they find what they're looking for within a few clicks?
A smooth UX isn't just nice; it directly impacts your conversion rates and customer satisfaction. If people struggle, they leave. Simple as that.
Your store's design speaks volumes about your brand.
You don't need to be a professional designer, but investing in a good theme or template (and learning how to use it well) pays dividends.
This isn't an option; it's a requirement. More than half of all online traffic comes from mobile devices. If your site looks clunky, or worse, unusable on a phone, you're alienating a massive chunk of your potential audience. Most modern platforms and themes are mobile-responsive by default, but always test it on various devices yourself. Pinching and zooming should be unnecessary.
This cannot be stressed enough. Your product photos are the closest thing your customers have to actually holding your item.
Invest in a decent camera (your smartphone might even suffice if you know how to use it), good lighting (natural light is amazing), and basic editing software. If you can afford a professional photographer, it's often a worthwhile investment.
This section might not be as exciting as choosing fonts, but it's absolutely vital for actually running a legitimate business. Skimp here at your peril!
This is how money flows from your customer's bank account to yours.
Ensure your chosen platform integrates seamlessly with your preferred payment gateway. Security is paramount here; customers need to feel safe sharing their financial information.
This is one of the biggest headaches (and costs) for online store owners. Don't just wing it!
Remember that shipping isn't just about getting the product from A to B; it's part of the customer experience. A smooth, transparent shipping process can turn a one-time buyer into a loyal fan.
Don't let the legal stuff intimidate you, but definitely don't ignore it. This isn't just about avoiding trouble; it's about building a sustainable, compliant business.
This isn't legal advice, but a strong recommendation to seek professional guidance for these areas. Better safe (and legal) than sorry.
Here's a harsh truth: A beautiful store with amazing products is utterly useless if no one knows it exists. Marketing is the engine that drives traffic to your store. This is where you tell your story, share your value, and connect with your ideal customers.
SEO is about making your store visible in search engines like Google. When someone searches for "handmade ceramic planters," you want your store to pop up!
SEO is a long game, but the payoff of free, targeted traffic is immense.
Identify where your ideal customers spend their time online (Instagram for visuals, Pinterest for inspiration, TikTok for short videos, Facebook for community, etc.).
Social media is not just a broadcast channel; it's a two-way conversation.
Email is still one of the most effective marketing channels, offering a direct line to your customers.
Email marketing allows you to nurture leads and build long-term relationships. It's your owned audience, not reliant on ever-changing algorithms.
Want to get in front of people quickly? Paid ads on platforms like Google, Facebook, Instagram, and Pinterest can accelerate your growth.
Paid advertising can be a powerful amplifier, but it requires a solid strategy and careful monitoring to avoid burning through your budget.
Beyond just selling products, can you provide value?
Content marketing builds trust and authority. People are more likely to buy from a brand that educates and helps them, not just sells to them.
Launching is just the beginning! The real work (and fun) happens in sustaining and growing your store.
Exceptional customer service can differentiate you from competitors and turn unhappy customers into your biggest advocates.
Happy customers return, tell their friends, and become your best marketing asset. Treat them like gold!
Don't just launch and forget. Regularly check your store's performance.
The online world is constantly changing, and your store should too. Use data to make informed decisions, not just guesses.
Nothing is more frustrating for a customer than finding exactly what they want, only to see "out of stock."
Efficient inventory management is crucial for profitability and customer satisfaction.
What happens when orders start pouring in?
Growth is exciting, but it brings new challenges. Plan for scalability from the start, even if it feels far off.
Once your store is stable, growth comes from disciplined marketing and conversion tactics. High-profile brands succeed by layering strategies: paid ads to scale reach, SEO content to drive organic traffic, and consistent storytelling to build a loyal social media customer base. Entrepreneurs should adopt the same mindset—test small, measure results, and double down on what works.
On-site, focus on tactics that increase revenue per visitor. Bundling products is a proven way to raise average order value (AOV). By offering starter kits, curated sets, or “complete the look” combinations, you create value while boosting sales. Other conversion levers include urgency (limited-time offers), trust (reviews and clear shipping policies), and retention (email flows like abandoned cart reminders and post-purchase upsells). Growth isn’t about doing everything at once but about iterating quickly on what brings measurable results. The combination of strong acquisition channels and smart on-site tactics creates a system where your traffic consistently converts and compounds over time.
No journey is without its bumps. Being aware of common traps can help you navigate around them.
You'll see stories of "overnight successes," but usually, there are years of hard work behind them. Building a brand, gaining trust, and generating consistent sales takes time, effort, and persistence. Don't get discouraged if you don't see immediate results. Celebrate small wins, learn from setbacks, and keep moving forward.
Your customers are more than just transactions; they are the heart of your business. Ignoring their feedback, providing poor service, or making them feel unappreciated is a surefire way to kill your store. Foster relationships, listen intently, and treat every customer interaction as an opportunity to shine.
It's tempting to try every marketing channel, offer every possible product, and cater to every demographic. But trying to do everything often means doing nothing particularly well. Identify your core product, your target audience, and your most effective marketing channels, then focus your energy there. Master a few things before attempting to conquer the world. (Even the best jugglers only have so many hands!)
After all this talk of planning, marketing, and the occasional headache, you might be asking yourself, "Is this really for me?"
The honest truth? Yes, it absolutely can be worth it. It's an incredible opportunity for creative expression, financial independence, and connecting with people who share your passion. It's a chance to build something entirely your own, on your own terms.
However, it's also a significant undertaking. It demands dedication, continuous learning, and a willingness to adapt. It's not a "get rich quick" scheme, and it's certainly not passive income in the early stages. You'll wear many hats: CEO, marketer, customer service rep, photographer, accountant, and probably even janitor (figuratively, of course).
So, if you're still feeling that spark, that drive to create and share your vision with the world, then go for it! Do your homework, plan strategically, and then launch with confidence. The online world is waiting for your unique contribution. It will be challenging, rewarding, and an incredible adventure. Good luck, and happy selling!