E-commerce Discounts: Economic Strategy or Psychological Trick?

Unpacking the cultural side of online shopping

In an era of touchscreens and instant notifications, one word still manages to seduce millions of fingers: discount. It’s no surprise that when an e-commerce app flashes a red label promising 50%, even 90% off, consumers instinctively reach for their digital wallets. Yet behind the glitter of “flash sales” and “11.11” lies an enduring question: are these discounts truly a healthy economic strategy, or merely a psychological trick designed to create the illusion of necessity?

In Indonesia, the phenomenon of online discounts has become more than a trend—it is a cultural shift. A Jakpat (2024) survey found that 78% of Indonesian e-commerce users admitted they shop more frequently during promotional campaigns, even when the purchases are not essential. This mirrors a global pattern. According to McKinsey & Company (2023), consumers across Southeast Asia often postpone purchases until “mega sale days,” believing those moments offer the best deals.

The Art of Creating Scarcity

“Discounts are no longer about cheap prices, but about perceived value,” said Rhenald Kasali, management expert at the University of Indonesia, during an economic forum. E-commerce, he argued, has adopted classic psychological tactics: instilling scarcity and urgency. Phrases like “Only 3 items left” or “Valid for 2 hours only” push consumers into feeling they might miss out on something rare if they don’t act immediately.

This strategy has a foundation in behavioral economics. It echoes Nobel laureate Daniel Kahneman’s theory of loss aversion, which states that people fear losing something more than they enjoy gaining it. In the context of online shopping, that fear is deliberately tapped to accelerate transactions.

Discount Economics: Who Really Wins?

For businesses, discounts are powerful customer acquisition tools. iPrice (2024) data shows that large-scale discount campaigns can account for up to a 40% surge in monthly transactions on Indonesian e-commerce platforms. With traffic multiplying, platforms profit not only from commissions but also from advertising revenue and increased user loyalty.

Yet not all players benefit equally. Small sellers often lament shrinking profit margins. “We’re forced to join discount programs just to stay competitive. If not, our products get buried in the search algorithm,” said Dina, an online fashion store owner in Bandung. She added that the system often favors big platforms while SMEs sacrifice margins merely to stay visible.

Ironically, consumers themselves don’t always get a better deal. A Katadata Insight Center (2023) study revealed that about 35% of “heavily discounted” items had their prices inflated days before the sale, only to be marked down again to appear cheaper. In plain terms: prices are hiked, then slashed—an illusion of savings.

A New Culture of Consumption

Beyond the numbers, discount culture has reshaped social behavior. Online shopping is no longer purely about necessity—it has become entertainment. The phrase “retail therapy” has taken root in the digital world. “Scrolling through shopping apps has become a form of light recreation, like watching a series or playing a game,” noted Irwan Abdullah, an anthropologist at Gadjah Mada University. Discounts add an adrenaline rush: the sense of competition, chasing the lowest price before items sell out.

This cultural shift resonates with the ideas of sociologist Zygmunt Bauman, who described the rise of the “liquid consumer society”—where identity and self-satisfaction are increasingly built through the accumulation of goods, rather than their long-term value. In this sense, online discounts are not merely marketing tactics but instruments shaping a new lifestyle.

Ethics and Sustainability Questions

There’s also an ethical dimension. Aggressive discounting drives hyper-consumption, which often clashes with sustainability principles. Cheap products typically lead to more packaging waste and higher energy use in logistics. A Greenpeace (2024) report highlighted that Southeast Asia’s mega sale periods contributed to a 15% rise in carbon emissions from delivery transport.

This raises a crucial question: to what extent are these discount strategies healthy for society? Do they broaden economic access, or do they widen the illusion of affordability while exacting a costly social and environmental toll?

Between Rationality and Emotion

Consumer psychologist Aisha Kurnia observes that modern buyers stand at a peculiar crossroads: they know discounts can be traps, yet they willingly step into them. “Discounts work because they appeal to both sides of human nature: economic logic and emotional gratification. Rationality says, ‘this is a saving,’ while emotion says, ‘this feels good.’ Together, they’re irresistible.”

This explains why, despite criticism, programs like “9.9” or “12.12” continue to break transaction records year after year. E-commerce has successfully fused economics and psychology into a cohesive ecosystem of consumption.

In the end, e-commerce discounts are neither purely an economic strategy nor merely a psychological trick. They are both—growth engines for business and mirrors of human impulses. The real question is: how will we, as consumers, respond?

Will we keep allowing algorithms and notifications to dictate our needs, or will we begin shopping with new awareness—distinguishing between genuine necessity and the illusion of “the best deal”?

Perhaps the simplest reflection is this: discounts are not inherently harmful, but it is our consciousness that gives them value. So, what do you think—when you click “checkout now,” is it a wise decision, or just another move in the grand game of digital economics?

✍️ Price and People

Eric Aryasatya