What Is A Coupon, Discount, and Promo Code?

What Is Coupon, Discount, and Promo Code?
Women enjoying online shopping

With the increasing interest in online shopping, people are fast becoming familiar with various deals and are buying products with discounts. Coupons not only provides discount benefits to the customer, but they also help brands in boosting their client base, maintaining existing customers, and enhancing brand image and loyalty which keeps customer connected to the brand for making a repeat purchase.

According to a Statista report, the number of internet users in India increased to about 45% in 2021, implying that nearly half of the country’s 1.37 billion population has internet access. This also made India second in the world in terms of active internet users. The rapid growth of internet users is fuelling the demand for online shopping, deals, and coupon market in India.

A Dealstreet report says that approximately 95% of online shoppers seek discounts online and 74% search for coupons provided on couponing websites, which indicates that Indian shoppers are highly interested in coupons.

Coupon, Discount, and Promo Code Explained

Coupon, Discount, and Promo Code Explained (Image source: Freepik)

What is a Coupon Code?

A coupon is a set of computer-generated alphanumeric sequences which shoppers can enter at the time of checkout while shopping online to get a certain percentage of discount or limited offer on their purchase.

How do coupon codes work?

Coupons are digitally generated by online shopping sites and are technically designed in a way to be accepted on their website or app to provide discounts on their products and services. A coupon code carries a certain percentage of discount or free shipping. When you apply a coupon during checkout or in the shopping cart, the offer associated with the coupon gets applied on the shopping and save money for the user.

How to use coupon codes?

You can use a coupon code after adding your desired product to the online shopping cart. On the payment details page, there is a box to enter coupon codes. Some shopping site supports applying coupon in the cart before checking out. You can get a discount coupon from India’s best coupons and Cashback app CashKaro and apply them to your shopping to avail of the discount associated with the coupon.

How to get a coupon, promo or promotional code?

You can get discount coupons, promo, or promotional codes by visiting various shopping sites. But the best and most convenient way to search for coupons is by visiting coupon apps and websites. You can search offers, discounts, and coupons from 1500+ shopping sites collectively at India’s best coupon website and app CashKaro. You can search coupons on the CashKaro website and app based on categories and sites, which makes the coupon searching experience convenient.

CashKaro – Best Coupon, Offers & Cashback Deals Site In India

How to enter a coupon code?

While shopping online, you can enter the coupon code on the checkout page or cart page of the shopping site. Just copy the coupon code from the coupon site or app, and paste it into the promo code/coupons box, and your assured coupon benefit will be applied to your shopping.

What are the benefits of coupons?

There are numerous benefits of coupon codes, depending on the type and the purpose of coupon codes. The discount coupon code provides a certain percentage of discount on the shopping amount. The free shipping coupon code provides free delivery of products and saves money on additional delivery charges on shopping. The trial coupon code lets users get a free trial of products and services before making a purchase. Freebie coupon codes provide free access to courses, content, videos, and more, where users can get the benefit of free access to online content.

What are the benefits of coupons?
What are the benefits of coupons? (Image source: Freepik)

Different Types Of Online Coupons

1. Promo Code

In this era of the internet, companies are digitally reaching out to customers via various ways and mediums. Promo code is one of the majorly used marketing tactics adopted by companies to promote their sales. Shopping platforms provide promo codes through advertising to encourage customers to buy the product and services, which results in increased sales.

2. Coupon Code

Coupon code is a generic term used for all the offline and online codes used to avail some discount, benefit, or perks at any offline or online outlet. Coupon codes are either provided by associated stores or outlets or in collaboration with other businesses, events, influencers, and more. There are various types of online, offline, scratch, affiliate, gift, and endorse coupons.

3. Discount Code

Discount codes are person-specific or publicly available codes that are given to customers as an inducement that lowers the price of a product or service. It is a useful marketing tool that entices customers and drives repeat sales. The discount code can be customised on the validity of the date, the number of times it can be used, the minimum amount of purchase, product categories, brand-specific, and more filters.

4. Refer Code

Refer code is a unique alphanumeric code allotted to the existing user (Referrer) which can be used to refer a new user to register for an app or website. The new user (Referee) can use the referral code at the time of signing up to get some rewards. This is what we call Affiliate marketing, such as Myntra & Flipkart Affiliate online. Brands incentivise existing customers for referring their services to a friend and provide exciting offers and rewards to new users for encouraging them to try their app/website for the first time.

Benefits Of Coupon Codes

Coupon code benefits both the users and the shopping sites; customer uses them to get discount and save money. On the other hand, shopping sites use it for customer engagement, boosting customer base and increasing sales. Some benefits of the coupon code are given below:

  • Easy to use – Coupon codes are easy to use; customer can apply coupons at the time of checkout or in the shopping cart to get a discount on their purchases hassle-free.
  • Save money – Coupons save money in various ways. It may provide discounts on purchases along with free shipping. Some coupons even come with a ‘buy one get one free’ offer, which provides another layer of saving money.

Pros & Cons Of Coupon Code


  • Customers can get a certain percentage of discount on their purchase.
  • Coupons can save the delivery charge on an item purchased online.
  • Users can save money by using coupon code


  • There are no cons of coupon codes for customers.
  • Companies can meet losses if coupons are used in an unethical manner.

Importance of Coupons

Coupons are important both for customers and businesses, as they benefit both of them. Coupons are used by customers to avail discounts and get various offers, whereas businesses use coupons to engage customers, increase sales, improve brand awareness, and more purposes. Did you know the difference between coupons vs vouchers vs promo Codes?


Is it illegal to use promo codes online?

No, it is not illegal to use coupon codes online. You can use the coupon code without any hesitation.

What happens when you use a promo code?

When you use a promo code, you will get a promotional discount associated with that particular code.

Where can I find coupons for online shopping?

You can find coupons for online shopping from 1500+ sites on the CashKaro app and website.

What is a free coupon?

A free coupon is a type of code that provides free access to something by applying them on particular sites. This is commonly used in educational materials.

What is a cash discount?

A discount provided by the seller directly to the customer is called a cash discount.

How to get coupon codes for shopping websites like Amazon, Ajio, Myntra, and other websites?

You can get coupon codes for websites like Ajio, Amazon, Myntra, and other websites using the CashKaro app/website.

How to apply coupons on different online shopping websites or apps like Myntra, Flipkart, Amazon, etc?

You can apply coupons on different online shopping apps or websites like Flipkart, Amazon, Myntra, and more in the shopping cart or you can apply coupons while checking out.

What are digital coupons?

Digital coupons are a set of an alphanumeric sequence programmed to provide a certain amount or percentage of discount on shopping sites.

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