In a more cautious consumption scenario with pressured margins, the global digital retail seems to be waging a price war. But behind the generous coupons and mega sales, what Amazon, Walmart, and Alibaba are competing for is not just the consumer's attention — it's their loyalty. The 2025 edition of Prime Day projected sales of $23.8 billion over four days, while Walmart launched "Walmart Deals" with intense promotions on physical and digital channels. On the other side of the world, Alibaba alone invested US$ 7 billion in coupons and incentives for e-commerce. The question is: does this tactic really work?
The immediate answer is in the numbers — and they are seductive. According to Adobe Digital Insights, this year's Prime Day recorded the highest average ticket in the historical series, even with fewer products on promotion. As for Walmart, by investing in integrated offers with the Walmart+ club and in-store pickup, physical visits increased by 18% during the campaign week, according to data from Placer.ai. Alibaba, in turn, 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 a lasting bond.
Studies on consumer behavior suggest that deep discounts tend to attract "bargain hunters," but not necessarily loyal customers. According to theHarvard Business ReviewOnly 15% of consumers who enter through price become repeat customers without relationship actions or a superior experience. The risk, analysts warn, is creating vicious cycles of promotional dependence — especially when the perceived value of the brand becomes solely the price.
"To address this, retailers are combining promotional aggressiveness with structured loyalty strategies. Amazon, for example, relies not only on discounts but also on the extreme convenience of Prime, ultra-fast delivery, and the ecosystem of services. Walmart has strengthened its perceived value through channel integration, focus on essential assortment, and app incentives. Meanwhile, Alibaba is advancing in AI for personalized recommendations, gamified rewards, and more immersive shopping experiences such as live commerce," highlightsRebecca Fischer, co-founderandChief Strategy Officer (CSO) yesDivibank.
Coupons are just the visible tip of a battle for relevance and retention. The true strategy lies in what happens after the purchase: in customer service, re-engagement, ease of use, and the building of continuous value. In a saturated market, getting a click is easy — convincing the consumer to return without a discount is difficult.
