An online coupon code, also known as a promo code or discount code, is a series of letters and/or numbers that can be entered on an ecommerce website to unlock discounts and special offers. Online coupon codes provide an incentive for customers to shop and make purchases from a particular retailer, allowing retailers to attract new shoppers, generate brand awareness, and increase sales.
How do online coupon codes work?
Online coupon codes must be entered by the customer at the time of checking out on an ecommerce website to redeem the advertised discount or offer. The coupon code is entered into a specifically designated field during the checkout process before the order total is calculated. Once the coupon code is applied, the discount will be reflected in the final price shown to the customer.
Here is a typical workflow for using an online coupon code:
- Customer finds and copies a coupon code from a website or other advertisement.
- Customer adds desired items to their online shopping cart on a compatible ecommerce site.
- During checkout on the retailer’s website, customer pastes the coupon code into the coupon code field.
- The website validates the coupon code. If valid, the discount is applied to the total purchase price.
- Customer completes checkout with discounted total price.
The validation and application of the coupon code discount happens automatically when the coupon code is entered correctly during checkout. Customers do not need to take any additional steps to apply the promotion.
Where do people find online coupon codes?
There are many sources online for consumers to find active digital coupon codes, including:
- The retailer’s website. Many brands offer exclusive coupon codes to email newsletter subscribers or display current promo codes directly on their website.
- Affiliate websites. Popular deal sites like RetailMeNot and Groupon provide searchable databases of verified coupon codes across thousands of retailers.
- Social media platforms. Brands will share coupon codes organically or through paid ads on platforms like Facebook, Instagram, and Twitter.
- Online publications. Bloggers and deal sites like Slickdeals will promote the latest coupon codes as a value-add for their audience.
- Browser extensions. Tools like Honey automatically find and apply available coupon codes at checkout.
- Influencer promotions. Brands partner with social media influencers to share coupon codes with the influencer’s audience.
Carefully searching for coupon codes before making an online purchase can help savvy shoppers save significant money on their orders.
What kind of discounts do coupon codes provide?
There are several types of discounts consumers can find through online coupon codes:
- Percentage discounts – These coupon codes offer a percentage off the total cart purchase, such as 20% off or 15% off.
- Dollar discounts – These codes offer a set dollar amount off the order total, like $10 off or $25 off.
- Free shipping – Coupon codes can unlock free standard shipping or expedited shipping at no cost.
- BOGO deals – “Buy one get one free” coupon codes allow customers to purchase one item and receive a second matching item for free.
- Free gifts – Some codes provide free products added to purchase, like free headphones on electronics orders over $200.
The specific discount or incentive offered will vary by the individual coupon code and retailer. Percentage discounts typically offer the highest dollar savings, especially on larger orders.
Why do retailers offer online coupon codes?
There are a number of strategic reasons retailers offer online coupon codes:
- Attract new customers – Coupon codes can entice new shoppers to try out a brand for the first time.
- Increase sales – Promo codes incentivize existing customers to purchase more frequently or spend more per order.
- Reduce abandoned carts – Discounts may convince shoppers to complete their checkout rather than abandon items in their cart.
- Boost website traffic – Offering exclusive coupon codes encourages consumers to visit the retailer’s website.
- Promote new products – New product launches can be promoted with short-term coupon codes.
- Build brand awareness – Coupon code availability spreads brand awareness as shoppers share and search for current promotions.
- Gain customer data – Collecting customer contact info to share coupon codes provides valuable consumer data.
The lower profit margin from discounted sales is usually offset by the increase in order volume and the long-term benefits of customer acquisition and retention.
Are there limitations on using coupon codes?
Online retailers often put certain limitations in place for the use of coupon codes:
- Expiration dates – Most codes can only be redeemed until a specified expiration date.
- Single-use – Some one-time codes can only be used once per customer.
- Limited redemptions – Codes may be restricted to the first X customers or to X total redemptions.
- Minimum order – A minimum subtotal value may be required to use a coupon code.
- Maximum discount – The maximum monetary savings from a code may be capped.
- Excluded products – Coupon codes often cannot be applied to certain brands, sale items, etc.
Reading the specific terms for each online coupon code is the best way for shoppers to understand if any restrictions apply before attempting to use it.
Do coupon codes work on all websites?
Unfortunately, most coupon codes are exclusive to the retailer that generated them and will only work on that specific website. However, some large retailers own multiple smaller brands that may honor coupons across associated websites:
| Retailer | Associated Brands |
|---|---|
| Gap Inc. | Gap, Old Navy, Banana Republic, Athleta |
| Williams-Sonoma | Williams-Sonoma, Pottery Barn, West Elm, Rejuvenation |
| Kering | Gucci, Yves Saint Laurent, Alexander McQueen |
There are also some browser extensions like Honey that apply any available sitewide promo codes automatically across thousands of online retailers. Overall though, checking for store-specific coupon codes is the best practice before buying from any given website.
Are coupon codes the same as promo codes?
Yes, online coupon codes and promo codes refer to the same type of retailer discounts. Some other common terms used interchangeably include:
- Discount code
- Voucher code
- Promotional code
- Gift code
These all indicate a series of numbers or letters that can be used to redeem a special offer from an online brand. Entering the code during online checkout automatically applies the advertised offer or discounted pricing.
How are coupon codes generated?
Online retailers use special coupon code generator tools to create unique codes configured with the parameters of their promotions. Here are some key technical aspects of how coupon codes work:
- Retailers specify the prefix to easily identify codes, like “FALL20” for autumn discounts.
- A unique string is randomly computer generated using letters and numbers, like “Wxt7Em4”.
- Additional parameters are set like discount type, exclusions, and expiration.
- The website’s checkout platform recognizes valid codes to apply promotions.
- Usage limits are defined, such as 100 redemptions of a code allowed.
Generating a large number of random, unique codes allows retailers to distribute coupons at scale while tracking redemption activity. Invalid or expired codes are automatically rejected at checkout per the parameters.
Are online coupon codes safe to use?
Legitimate coupon codes offered directly by reputable retailers or popular deal websites are generally safe to use online. However, shoppers should be wary of coupon code scams and always follow best practices:
- Only use codes found on the retailer’s official website or trusted third-party deal sites.
- Check for any strange or overly-generic text in the promotion details that may indicate a scam.
- Never enter personal or credit card information on unfamiliar coupon code websites.
- Read the fine print for exclusions, expiration dates, etc. before using a code.
- Use a secure payment method like PayPal when possible.
As long as proper precautions are taken, online coupon codes can be safely used to access major discounts from leading ecommerce retailers.
Can you use multiple coupon codes?
The ability to use multiple coupon codes on one online order varies by retailer. There are a few potential outcomes when stacking coupon codes:
- Only one code is accepted. Any additional codes are rejected at checkout.
- Multiple codes work, but the discounts do not stack. Only the best single discount applies.
- The discounts from multiple codes mathematically combine for extra savings.
Most major retailers prevent coupon code stacking and will only allow one promotional code per order. However, some brands do allow multiple coupons. Shoppers should experiment at checkout to see if entering more than one code is beneficial.
Can expired coupon codes be used?
No, online retailers will automatically reject expired coupon codes at checkout. Customers need to enter a valid, non-expired promo code in order for the discount to be applied. Retailers regularly generate new coupon codes to replace expired codes and keep promotions running.
That said, some customers report success using expired codes very shortly after expiration, especially if the code has not hit its total usage limit. This is likely due to a lag in propagating code restrictions across retailer systems. However, code validation typically happens almost instantly to prevent the use of expired codes.
Can you get in trouble for sharing coupon codes?
Most retailers do not prohibit customers from sharing legitimate online coupon codes or penalize them in any way. In fact, many brands rely on shoppers organically spreading codes across social media and other channels to maximize exposure and code usage.
However, there are some circumstances where legal action could potentially be taken for coupon code misuse:
- Sharing codes from an invite-only promotion that expressly prohibits it
- Using leaked or hacked coupon codes not meant for public distribution
- Generating and sharing fake, fraudulent coupon codes or promotional links
As long as codes are shared ethically using official channels, there are no major risks. Brands view coupon usage, even via code sharing, as a key method of customer acquisition.
Should you avoid website plugins that apply codes automatically?
Browser extensions like Honey that automatically test coupon codes at online checkout are generally safe to use but do have some downsides:
- Limited codes tested – Only codes on file in the plugin database are checked, so you may miss new or exclusive codes.
- checkout slowed – Automatically trying multiple codes can slow the checkout process.
- Data privacy concerns – granting access for apps to test codes means sharing your browsing data.
For those reasons, it may be better to manually look up and apply coupon codes directly rather than relying on these tools. However, automatic coupon apps do successfully find savings with minimal effort in many cases.
Conclusion
Online coupon codes remain one of the most popular and effective tactics brands leverage today to attract new shoppers, boost sales, and build customer loyalty. For savvy shoppers, taking the time to find and use coupon codes before checkout can unlock huge savings on all types of online purchases. With an understanding of how promo codes work and the extensive options for sourcing current codes, consumers can take advantage of the great value provided by online retailers’ coupon code strategies.