Does it make sense to give a potential buyer a discount on the promotional code (coupon)? What benefits can be derived from this and what disadvantages does this tool have?

Many owners of online stores sooner or later face a dilemma whether it makes sense to provide a potential buyer with a discount on the promotional code (coupon). What are the benefits and disadvantages of this tool?

First, let's look at the overall picture in Europe and the United States. The picture is as follows: such world giants as Amazon, EBay and many others have long been using promotional codes in the sales process. Accordingly, this tool deserves special attention and can be seriously considered for implementation at home.

What do you need to know to use this tool correctly?

What are the obvious "Pros" and "Cons" to consider before you finally decide to implement this tool?

Points Pro:

Additional news hook

The introduction of coupons in the sales process can obviously be used as an additional information source to attract potential buyers in their information and advertising campaigns.

Good tool for returning old customer

According to this scheme, Cdon is working successfully. If you have ever bought or registered on the website of this store, you probably have already received mailings with coupons that guarantee certain discounts. Thus, the Cdon store reactivates its former customers and motivates them with a discount on the promotional code at to make a new purchase.

A good tool to get rid of stale goods

Discount on the promotional code can be perfectly used for the sale of off-season or stale goods. In this case, the buyer is provided with a coupon with a certain denomination, which works for a certain group of goods. It is up to the store what this group of products will include. In this case, a potential buyer should be given a clear opportunity to save money using a code word that guarantees a discount.

Using coupons in this scheme, the store simultaneously fulfills two goals: creates a clear news hook and boosts sales in a certain product category.

A great tool to increase the size of the basket

This is perhaps the main goal pursued by stores that have implemented promotional codes in the sales process. The scheme is very simple. For example, your online store has an average check of $300 and you want to raise it to $ 500. If you want to motivate the buyer to make a more expensive purchase, offer him a discount on the promotional code (5%) at the cost of goods in the basket of $500. This scheme is well established in the largest online stores.

Access to a new audience

Promo code - is a great news hook primarily for coupon sites (sites with promotional codes as Promocodius Norway). Coupon sites pick up and spread any discount that is provided by the coupon.

The points Con:

Any discount is a refusal for the seller of a part of the income for the sake of the buyer. If the discount or terms of its provision are calculated incorrectly when working with promotional codes, the store can have financial losses. Unfortunately, this happens quite often.

- The danger of losing hot client directly from the shopping cart

This is the biggest and quite justified fear of any store. If you want to avoid this situation the buyer should come to the store site already with a coupon. If this is not the case, you should find a suitable promotional code as quickly as possible. You need to distribute your promotional codes to the widest possible audience and make sure that the user can google the desired coupon. If so, then there is nothing to fear.

- Extra costs when working with webmasters through the affiliate program (in the presence of promotional codes)

In addition, you still sell the goods at a discount. Due to the inaccurate calculation of these two points, you may find yourself in a situation where you have financial losses. It all depends on the accuracy of your calculation.

In addition, if you work through an affiliate program, you need to control the actions of your partners to get the highest quality traffic.

- Possible financial losses due to incorrect mechanism of discount calculation

The introduction of the coupon discount scheme entails the need for the technical implementation of this mechanism. There may be another "hole", namely when a visitor can get an unauthorized discount. If the system is not working properly, then the discount goes unnoticed on the side of the store. This entails financial losses on the side of the store.

If you want to have such a case, many stores do not go to the implementation of the tool and it is quite understandable.


So, these points give a pretty clear picture of the "pros" and "cons" of the introduction of coupons. These entire risks are quite obvious and easily eliminated. The pros are also clear and obvious. Accordingly, due to the right approach to the use of coupons, you can only benefit from the introduction of this tool.

Author's Bio: 

Author, Freelance writer