What is a Discount Code?

Discount CodeWhat does discount code mean?

A code or series of letters and numbers that can be entered at the checkout of an online purchase that will allow the shopper to take advantage of a special offer or discount, these codes also being known as coupon codes. Discount codes are used as a way to entice customers to buy online and are used in a similar way as coupons that you would cut out of your local newspaper in the past.

Generally there are three common ways in which discount codes are offered to customers:

  • Percent Discount – A percent discount takes a given percentage off a customer’s order, such as 10%, 20% or even as much as 50%! The percentage discount only applies to the cost of the purchase, and is not applied to any shipping charges or taxes.
  • Fixed Dollar Discount – This is a common discount type that offers customers a set dollar amount off their purchase, such as $10 off any purchase. In many cases the fixed dollar purchase will be tied to a minimum purchase amount, such as $10 off any order of $40 or more. The fixed dollar discount could even apply to specific items, such as buy 10 energy bars and receive $10 off your purchase.
  • Free Shipping – This is a common incentive and is often combined with a minimum purchase, such as all order over $25 receive free shipping. Typically the free shipping offer will only apply to items shipped domestically or within the sellers country.

When you offer discount codes on your website, you will increase your conversion rate and traffic to your site. Each discount code will be unique, and you will only be able to use it once. Discount codes are used with good success in paid advertising campaigns, with the added bonus of being able to closely track which advertisements perform best and convert the most visitors.

If you’re a consumer shopping online, before you enter the checkout, make sure that you look for coupon codes and take advantage of the discounts that are available when you choose to shop online.

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