In a scenario of more cautious consumption and squeezed margins, the global digital retail seems to be engaging in a price war. But behind the generous coupons and mega clearances, what Amazon, Walmart, and Alibaba are competing for is not just consumer attention—it’s their loyalty. The 2025 edition of Prime Day projected $23.8 billion in sales over four days, while Walmart launched ‘Walmart Deals’ with intense promotions in physical and digital channels. On the other side of the world, Alibaba alone invested $7 billion in coupons and e-commerce incentives. The question is: does this tactic really work?
The immediate answer lies in the numbers—and they are enticing. According to Adobe Digital Insights, this year’s Prime Day recorded the highest average ticket in the historical series, even with fewer products on sale. Meanwhile, Walmart, by betting on offers integrated with the Walmart+ club and in-store pickup, saw physical visits rise by 18% during the campaign week, according to data from Placer.ai. Alibaba, on the other hand, uses coupons on a large scale as part of a strategy to reactivate inactive consumers and offset the slowdown in the Chinese market. But short-term success does not guarantee lasting loyalty.
Consumer behavior studies suggest that deep discounts tend to attract ‘deal hunters’ but not necessarily loyal customers. According to the Harvard Business Review, only 15% of price-driven consumers become repeat customers without relationship actions or a superior experience. Analysts warn that the risk is creating vicious cycles of promotional dependency—especially when the perceived value of the brand becomes only about the price.
“To deal with this, retailers are combining promotional aggressiveness with structured loyalty strategies. Amazon, for example, does not just rely on discounts but on the extreme convenience of Prime, ultra-fast delivery, and a service ecosystem. Walmart has strengthened its perceived value through channel integration, focus on essential assortment, and incentives via the app. Meanwhile, Alibaba is advancing in AI for personalized recommendations, gamified rewards, and more immersive shopping experiences, like live commerce,” highlights Rebecca Fischer, co-founder and Chief Strategy Officer (CSO) of Divibank.
Coupons are just the visible tip of a battle for relevance and retention. The real strategy lies in what happens after the purchase: in customer service, reengagement, ease of use, and continuous value creation. In a saturated market, winning a click is easy — convincing the consumer to return without a discount is hard.
