Limited-Time Offers and Discounts Are Losing Their Edge in Bangladesh’s E-Commerce. Why?

Remember when limited-time offers and discount deals were a surefire way for brands to persuade us to buy anything? They’re still around, but they don’t drive the same shopping frenzy anymore. So, what changed?

The Evolution of E-commerce and Consumer Habits

As e-commerce has grown, we as consumers have also evolved. We’ve learned to scroll past ads, ignore “YOU WON A PRIZE” banners, and dodge many online promotional gimmicks. Over time, we've become adept at tuning out the online noise. Today, most ads barely catch our attention—they are just a blur. We’ve come to recognize that “limited-time offers” or “special discounts” are often recycled, popping up week after week.

This isn’t unique to Bangladesh. A study in the Journal of Marketing Research found similar patterns. While these tactics still work well in physical stores- where the urgency feels real, in online shopping, scarcity often feels manufactured.

Case in Point: Desensitization by Constant Promos

Take Daraz, the largest e-commerce platform in Bangladesh, as an example. Every session, users are hit with discounts and promotions. Smaller e-commerce and F-commerce businesses add to this effect, often creating fake urgency or inflating prices only to offer heavy “discounts” later. As a result, discounts now feel like daily noise, diluting any sense of urgency.

The Discount Trap

Promotional emails or “Limited-Time Offer” banners may drive clicks, but they also condition customers to wait for discounts before purchasing. This turns promotions into the “new normal.”

1. Increased Competition: A decade ago, a few posts and ads could spark sales. But as more brands enter the market, what used to be a sprint has turned into a marketing marathon.
2. New Business Mindset: Many startups and SMEs start with the right intentions—healthy margins, competitive pricing, and unique USPs. Yet, they often fall into the discount trap, reducing prices to attract customers, which builds an expectation of constant discounts rather than unique value.

Why Traditional Promotions Don’t Work as Well Online

In physical stores, scarcity feels real,-if something’s out of stock, it might take days to restock, which fuels impulse buying. But online, availability seems endless. So, the question isn’t “Can I get it?” but rather, “Am I getting the best deal?” or “Should I stick with a familiar store or gamble on the lowest price?”

The Remedy: Building Lasting Value

To break this cycle and foster genuine customer loyalty, online retailers can adjust their strategies:

1. Authentic Limited-Time Offers: Utilize birthday discounts or seasonal promotions that feel more credible, like Winter Specials or Fall Collections.
2. User-Generated Content (UGC): Feature real customer experiences to showcase your product’s value beyond just a discount.
3. Value Beyond Price: Offer bundle deals, premium delivery, and exclusive perks.
4. VIP Access: Give loyal customers early access to new stock.
5. Referral Programs: Expand your reach with referral or affiliate programs.
6. Micro-Influencers: Partner with relatable influencers to add genuine appeal to your brand.

Conclusion

Discounts and limited-time offers have lost their punch, especially in Bangladesh's crowded e-commerce scene. With consumers more tuned into what’s real vs. hype, it’s time for brands to step up their game. Building genuine value and real connections is what actually cuts through the noise now. E-commerce brands looking to stay relevant should focus on loyalty and unique experiences over short-term sales tactics. Furthermore, they should create unique online promotions over adapting retail store tactics. At the end of the day, it’s about keeping customers coming back, not just pushing the next deal.