New study: Online retailers ramp up promo code offers as consumer demand for discounts surges

Good news for the 64% of Americans who shop online at least once a week: A new study released today by SimplyCodes shows a substantial uptick in the issuance of promo codes by online retailers and brands. Merchants are deploying more promo codes and making these discounts more enticing.

Our analytics team examined nearly 400,000 retailers on the platform from January to June 2024 and found that, on average, retailers issued nine unique codes—1.5 codes per month. This marks a 31% increase compared to the same group of retailers during the same period in 2023.

Promo codes are not only more plentiful, but they also offer greater discounts. This year's data shows that promo codes provide an average discount of 17.6%, up 2.6% from last year's 17.17%. Additionally, the average dollar amount off per promo code has increased by 22%, rising from $27.26 to $33.25.

Alongside common and seasonal promo codes, there has been a rise in single-use codes. These unique codes are given directly to customers, often through email, and can only be used once. The number of retailers offering single-use codes has increased by 47% compared to last year.

The data underscores a growing reliance on these incentives by both consumers and retailers amid competition and economic factors such as inflation and cost of living. According to a recent study, nearly 70% of Americans say having promotional codes makes them more inclined to make a purchase and 62% of Americans actively seek out and use promo codes when making online purchases.

SimplyCodes' comprehensive dataset further reveals prevalent trends in coupon usage. Among the most common coupon phrases identified, several key themes emerge:

1. OFF

2. SAVE

3. WELCOME

4. FREE

5. NEW

6. SHIP

7. SUMMER

8. LOVE

9. BF

10. SPRING

These phrases reflect seasonal and promotional trends and highlight popular strategies that retailers use to attract and engage shoppers throughout the year.

With the influx of promo codes available, it would be reckless for consumers not to take advantage and shop without first looking for codes. Tools like SimplyCodes provides shoppers with the most robust, real-time, working promo codes through its top ranking browser extension and app.

Methodology

The findings were compiled using data from SimplyCodes’ robust database on merchants and promo codes. SimplyCodes analyzed data from January 1 to June 30, 2024, and compared it to the same period in 2023.