Promo codes are the modern day version of the paper coupon that helps online shoppers save money while boosting sales for businesses. But what exactly is a promo code, and how can you use them to save money?
Digital promo codes eliminate paper waste and made it easier for consumers to access and redeem discounts from home. Now you can get promo codes from an app on your phone or through a coupon browser extension — no scissors necessary.
What is a promo code?
Promo codes — also known as promotional codes, coupon codes, or discount codes — are alphanumeric strings such as WELCOME20 or SAVE25 that shoppers can enter during the online checkout process to receive a special offer or discount on their purchase. Coupon codes may get you percentage discounts, fixed price reductions, free shipping, and other promotional incentives.
Types of promo codes
Promo codes come in various forms, each designed to appeal to different customer needs and shopping behaviors. You might see similar codes used for different retailers. That’s why you should know the most common codes brands use to get discounts more easily.
Understanding these types can help you identify the best deals and make the most of your online shopping experience. Here are the most common types of promo codes you might encounter with examples of the types of codes you might get from a brand or online retailer. Many retailers offer several or all of the following discount code types during various times of the year.
1. Percentage discounts
Percentage discounts are perhaps the most straightforward and commonly used type of promo code. They offer a percentage off the purchase price, typically applied to your entire order or specific categories of items.
Example: 20% off your entire order with code SAVE20
How it works: When you enter the code SAVE20 at checkout, the retailer’s system will automatically deduct 20% from your subtotal. For instance, if your cart total is $100, you'll pay only $80 after applying the code. Always check your final cart price to check that the discount code applied correctly.
2. Fixed amount discounts
Instead of a percentage, these promo codes provide a specific dollar amount off your purchase. They're often tied to a minimum purchase requirement to ensure the retailer maintains a certain profit margin.
Example: $10 off orders over $50 with code 10OFF50
How it works: If your order subtotal is $50 or more and you apply the code 10OFF50, $10 will be deducted from your total at checkout when you input the promo code.
3. Free shipping
Free shipping promo codes eliminate the shipping costs that can often be a deterrent for online shoppers. These codes typically come with a minimum purchase requirement.
Example: Free shipping on orders over $75 with code FREESHIP75
How it works: When your cart total reaches $75 or more, entering a code like FREESHIP75 will remove all shipping charges at checkout. This can be especially valuable for bulky or heavy items that typically incur high shipping fees.
4. Buy one, get one (BOGO) offers
BOGO offers are a popular promotional strategy that encourages customers to purchase multiple items in order to get a free item or a discounted item.
Example: Buy one shirt, get one 50% off with code BOGO50
How it works: When you add two qualifying items to your cart and apply the code BOGO50, the cheaper of the two items will be discounted by 50%.
5. Minimum purchase discounts
These promo codes offer a discount when you spend over a certain amount. They're designed to increase average order value by incentivizing customers to add more items to their cart.
Example: $20 off orders of $100 or more with code SPEND100
How it works: Once your cart total reaches $100 or more, applying the code SPEND100 will deduct $20 from your total. This can be a great opportunity save on items you were planning to buy anyway.
6. First-time customer discounts
Many retailers offer special discounts to new customers to encourage them to make their first purchase and hopefully become repeat buyers.
Example: 15% off your first order with code FIRSTTIME15
How it works: This type of code can only be used once per customer on their initial purchase. You can typically find a welcome offer like this at most online stores. Sometimes you’ll have to sign up to receive emails and/or SMS messages to get the code.
7. Loyalty program discounts
These are exclusive discounts offered to members of a store's loyalty or rewards program. They're designed to encourage repeat purchases and customer loyalty.
Example: Extra 10% off for VIP members with code VIP10
How it works: The code VIP10 would only work for accounts registered in the store's loyalty program. This type of discount rewards loyal customers and can provide an incentive for others to join the program.
8. Seasonal promotions
Seasonal promo codes are time-limited offers tied to specific holidays, seasons, or events. They're often used to boost sales during particular times of the year. You can find tons of codes around major holidays such as Memorial Day, Independence Day, Labor Day, Black Friday, Cyber Monday, Christmas, and New Year’s
Example: 30% off your entire purchase with code LABORDAY30
How it works: The discount could apply to your entire purchase or a specific category of items for a limited time. These promotions can be great opportunities to save on seasonal items, but they often have expiration dates, so it's important to act quickly.
How to find promo codes
Now that you know what different kinds of promo codes online retailers might offer, it’s important to learn how you can actually find working promo codes to maximize your discount. Here are some common ways you can find promo codes:
Email newsletters: Signing up for retailer newsletters is often your ticket to exclusive discounts. Many brands offer welcome discounts for new subscribers and send special codes to their email list. For example, Barnes & Noble frequently sends personalized single-use promo codes to new subscribers.
Social media: Follow your favorite brands on platforms like Facebook, Instagram, and TikTok. Companies often share promo codes and flash sales with their social media followers. It's a great way to stay updated on the latest deals.
Coupon websites: Search for a store's name on SimplyCodes to find working promo codes from over 400,000 retailers. These aggregators can be a goldmine for digital coupons.
Browser extensions: Using a trusted coupon code browser extension finds coupon codes you can use at checkout. These extensions can save you time and effort in searching for codes manually.
Mobile apps: Apps like SimplyCodes, Ibotta, and Checkout 51 offer rewards, cash back and digital coupons, especially useful for grocery shopping.
Manufacturer websites: Don't forget to check the websites of product manufacturers directly. They often offer coupons and promotions that you might not find elsewhere.
Loyalty programs: Joining store loyalty programs can give you access to exclusive discounts and allow you to accumulate points for future savings.
Want to dive deeper? Read the expert guide on how to find working promo codes.
Best practices for using promo codes
Use these tips to increase your chances of using a working promo code that gets you the best discount:
Enter the code exactly as it appears, including any capital letters or special characters.
If a code doesn't work, try clearing your browser cache and cookies, then attempt to apply the code again.
Use a crowdsourced promo code site where real people verify if the code works or not.
Read the terms and conditions associated with the promo code to understand any restrictions or requirements.
If you're having persistent issues, contact the retailer's customer service for assistance. Sometimes customer service agents have their own codes they can give you.
Expert tips for maximizing savings
Use these tips to get the steepest discount on your online purchases:
Use incognito mode: When shopping, use your browser's incognito or private mode to avoid price inflation based on your browsing history.
Strategic cart abandonment: Consider adding items to your cart and then leaving the site without completing the purchase. Many retailers will send a follow-up email with a promo code to encourage you to complete your purchase.
Store credit cards: Consider signing up for store credit cards, which often come with exclusive discounts and offers.
Special discounts: Check for student, military, or senior discounts if applicable.
Price matching: Use price matching policies when available, combining them with promo codes for even greater savings.
Compare multiple codes: Don't settle for the first promo code you find. Compare different codes to ensure you're getting the best deal.
Check for restrictions: Be aware of any minimum purchase requirements or product exclusions associated with the promo code.
Sign up for price drop alerts: Use services that notify you when prices drop on items you're interested in, then apply promo codes for additional savings.
Leverage social media: Engage with brands on social media. Sometimes, simply asking about available discounts can result in a promo code.
Seasonal shopping: Be aware of seasonal sales cycles. For example, winter clothing is often discounted in late winter, while electronics see great deals around Black Friday.
By incorporating these strategies into your online shopping routine, you can significantly reduce your expenses.
Why promo codes sometimes don't work
Here are some of the common reasons a promo code might not work:
The code may have expired.
You might not meet the eligibility criteria (e.g., new customers only, minimum purchase amount).
The items in your cart may not be eligible for the discount.
You may not have reached the minimum purchase amount.
The code may have reached its usage limit.
If you're having trouble with a promo code, double-check these factors and the code's terms and conditions.
Using multiple promo codes
You might be able to save even more by using multiple promo codes in a single transaction, a practice known as "coupon stacking."
Can you use more than one promo code?
The short answer is: it depends on the retailer. While some stores restrict customers to one code per order, others allow multiple codes to be applied. The best way to find out if you can stack promo codes with a retailer is to try. You might be more successful if you combine different types of discounts (e.g., percentage off + free shipping).
Many retailers don’t allow coupon stacking so don’t be surprised if it doesn’t work. If that happens, use the promo code with the deepest discount available.
Retailers that allow multiple promo codes
While not all retailers allow code stacking, some notable exceptions include:
Target: Allows multiple promo codes on online purchases, though they don't specify a limit.
Victoria's Secret: Accepts multiple coupon codes and even allows retroactive code application.
Banana Republic, Gap, and Old Navy: Allow stacking of up to five coupon codes on a single online purchase.
DSW: Permits stacking of three different coupon codes per online order.
Best practices for using multiple promo codes
If you're looking to maximize your savings through code stacking, consider these tips:
Check retailer policies: Always verify if the store allows code stacking before attempting to use multiple codes.
Order of application: When possible, apply percentage discounts before fixed amount discounts for maximum savings. For example, if you have a 20% off code and a $10 off code, apply the 20% off first.
Combine different types: Try to combine product discounts with shipping discounts or order discounts. These often have fewer restrictions on combining.
Use browser extensions: Tools like Honey or Capital One Shopping can automatically find and apply multiple codes, saving you time and effort.
Timing is key: Look for opportunities to combine promo codes with seasonal sales or clearance events for even bigger savings.
Read the fine print: Some codes may not be eligible for stacking, so always check the terms and conditions.
Be prepared with alternatives: If one combination doesn't work, be ready to try different code combinations.
How to apply a promo code at checkout
While the exact process may vary slightly between different e-commerce platforms, here's a general step-by-step guide on how to apply a promo code:
Add items to your shopping cart.
Proceed to checkout.
Find a promo code on a trusted promo code site, browser extension, or app.
Look for a field labeled "Promo Code," "Discount Code," or something similar.
Enter your promo code in the designated field.
Click "Apply" or a similar button to submit the code.
Wait for the system to validate the code and recalculate your total.
Verify that the discount has been applied correctly.
Combining discount methods for maximum savings
These discount methods don't have to be used in isolation. Savvy shoppers and retailers often combine them for maximum impact:
Promo codes + loyalty programs: A retailer could offer a promo code for additional savings on already discounted items to loyalty program members.
Coupons + rebates: A rebate could be offered in addition to an instant coupon discount on a large purchase, providing both immediate and delayed savings.
Loyalty programs + promo codes: Loyalty program points could be earned on purchases made with promo codes, accelerating reward accumulation.
Rebates + loyalty programs: A retailer might offer bonus loyalty points for submitting rebates, encouraging both the initial purchase and the rebate follow-through.
By strategically combining these methods, you can create significant savings opportunities. However, be mindful of any restrictions on combining offers, and always calculate the total savings to ensure the deal is worthwhile.
The future of promo codes: AI-driven personalization and emerging technologies
As e-commerce evolves, promo codes are being transformed by AI, machine learning, and other emerging technologies. These advancements are reshaping how retailers create, distribute, and manage promotional offers.
AI and machine learning: Personalizing the promo code experience
AI and ML are revolutionizing promo codes in several ways:
Personalized offers based on customer data and behavior
Predictive analytics for timely code delivery
Dynamic, one-time-use code generation
Optimization of discount levels for individual customers
Future developments in promo code technology
Promo codes may evolve further, such as:
AI-powered chatbots offering personalized codes
Voice commerce integration for smart speaker shopping
Blockchain technology for improved code security
Augmented Reality (AR) for interactive promo experiences
Ethical AI considerations in pricing strategies
What this means for consumers
These developments offer both opportunities and potential concerns:
More relevant and convenient offers
Increased savings potential
Privacy considerations with data sharing
Potential complexity in comparing deals
To make the most of these advancements:
Stay informed about new technologies
Be mindful of data sharing and privacy policies
Remain open to new ways of receiving and using promo codes
Continue comparing prices across retailers
The future of promo codes promises more personalized, dynamic, and technologically advanced savings opportunities.
Become a promo code pro
Promo codes can help you save money and maximize value. By understanding how promo codes work and applying coupon codes at checkout, you can get more out of your budget. Remember, the goal isn't just to get a discount, but to make your money go further. Armed with this knowledge, you're now well-equipped to become a promo code pro.
More articles
Editor's picks
by Sean Fisher
Sean Fisher is an Editor at SimplyCodes, where he creates engaging, informative content for the SimplyCodes blog. With expertise in online shopping trends and consumer finance, Sean delivers valuable insights on saving money and finding the best deals. Sean's goal is to empower readers with the knowledge to make smarter shopping decisions and stretch their dollars further. Previously he worked at GOBankingRates and WebMD. He has a bachelor's degree from University of California, Santa Barbara.
