The 'State of Discounts' in 2023

Industry Insights
Fondue Team
March 10, 2023

We hate to break it to you…But if you’re one of those DTC Brands who've been throwing coupons around like confetti — the party is over. 2023 is the end of aimless coupon campaigns, folks. It's time to pack away the party hats and face the sobering reality: a reckless pursuit of growth is no longer sustainable. The bottom line is now the top priority, and brands will have to start counting more than just the number of shopping carts they've filled. In other words, it's time to put down the out-dated coupon codes and figure out a new strategy for discounting (one that actually makes you money, imagine that). 

No need to panic, my friends! The ‘returns’ space has weathered the storm before. When COVID first hit, return volumes skyrocketed and quickly killed brands' profitability. Brands adapted to the new normal. They simply created SAAS that could keep up with the ever-expanding e-commerce landscape. We’re quite the species, aren’t we?

With the era of discounting (at whatever cost) coming to an end, it’s time for SAAS to step back in and redefine another category. As we saw with the returns space — there are multiple winners when each tool solves a different part of the value-chain (ex. retail drop off, returns insurance, returns experience, etc). Similarly, we believe there are many essential elements in the discount value-chain. And yes — we outlined them for you below.

These categories Include: 

Dynamic couponing/pricing, Coupon Code leakage, Coupon UX/UI, Offers, Alt discounts to coupons 

Dynamic discounting 

Enhancing the coupon code experience by using Ai, machine learning, A/B, or data-driven research to dynamically create unique offers for products or customers. 

Coupon code leakage

Detection or prevention tools that help product-based e-commerce brands avoid coupon-code abuse.  

Coupon UX/UI 

Creating new experiences to make coupon codes more accessible and effortless than ever.


Tooling meant to help merchants incentivize customers in ways other than coupons. 

Alternative Discounts to Coupons 

New discount types that break the traditional form of couponing like cashback, rebates, or gifting. 

💡Pro Tip: 

One of the easiest and most impactful changes your brand can make today is swapping your coupon codes for CashBack! Since most customers redeem these discounts for store credit or don’t redeem them at all, your brand keeps more profit. Makes a lot of sense, doesn’t it? Forget coupon code addiction once and for all, and cash-in on CashBack with Fondue.