Couponcodes

Coupon codes, also known as promo codes or discount codes, are alphanumeric strings that enable a retailer to apply a discount or offer at checkout. They function by linking the code to an entitlement in the retailer's pricing system, and when entered by a customer, the corresponding discount is applied to eligible items or orders.

A typical code specifies the discount type (for example, a percentage off, a fixed amount off, free shipping, or a bundled offer), the scope (which products or categories are eligible), and any conditions (minimum purchase, geographic restrictions, date range, or per-user limits).

Codes are distributed through marketing channels such as email newsletters, social media, affiliate networks, influencer campaigns, or loyalty programs. They can be redeemed online at checkout or in-store through apps, digital wallets, or printed codes.

Benefits for retailers include encouraging purchases, clearing inventory, and gathering shopper data; benefits for consumers include savings and access to promotions. Limitations include potential erosion of margins, restrictions on stacking, or exclusions on sale items.

Fraud and misuse can occur when codes are shared beyond intended audiences or generated at scale. Merchants mitigate this with expiration dates, usage caps, single-use codes, and anti-fraud tools.

Historically, coupon codes emerged from consumer coupons and evolved with e-commerce in the 1990s. Today they are common in online shopping, mobile apps, and increasingly in-store experiences via digital codes.