Tips for Ecommerce Merchants: Do's and Don'ts In Online Couponing

I am a coupon freak (at least online). While I never collect coupons going to the grocery, I always search the Web first if there are any coupons available before I start my online shopping. I also sign up for offers with my favorite stores so I get their latest deals and coupons.

If you are selling on the Web, online coupons are a must to attract and retain customers. MultiChannel Merchant has an interesting article on "Ten Tips for Online Couponing" written by the founder of CouponCabin.com. His tips include:

1. Create coupons that appeal to a wide audience and are simple to apply.
2. Avoid complicated coupon codes.
3. Higher discounts lead to better conversion rates.
4. Coupons offering a flat rate discount in dollars, such as $10 off a purchase of $50 or more, are very popular.
5. Create a minimum spending requirement (e.g. $10 if you spend $200)
6. Free shipping coupons do well
7. Offer greater discounts to first time customers since they often have larger orders
8. Make your coupons user friendly or just one click of the user
9. Mark your coupon code boxes in your checkout clearly so customers can see them immediately
10. Link the coupons to specific landing or category pages.