Term

What is Discount Code?

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Discount Code

A discount code is a series of letters and numbers that a customer can enter while making an online purchase to get a special offer or discount. These codes are also called coupons.  Discount codes are used as a way to entice customers to buy online.

Generally, there are three common ways to provide discount codes to customers:

  1. Percentage Discount – Percentage discount takes a specified percentage of the customer’s order, for example, 10%, 20%, or even as much as 50%. 
  2. A  fixed dollar discount offers customers a rebate amount from their purchase, such as $10 from any purchase. 
  3. Free shipping is often combined with a minimum purchase, for example, all orders over $25 receive free shipping. Usually, the free shipping offer only applies to items shipped domestically or to the country of sellers.

When you offer discount codes on your site, you increase your conversion rate and traffic to your site. Each discount code will be unique and you can only use it once. Discount codes have been used successfully in paid advertisement campaigns, with the added benefit of being able to accurately track which advertisements perform best and convert the majority of visitors.