eCommerce glossary

All the terminology you’ll ever need, together in one place. We can even let you know when new terms are added.

Promo Codes

Promo codes, aka promotional codes, are alphanumeric strings that eCommerce business owners offer to their customers to drive faster sales. Promo codes play a pivotal role in boosting the conversion rate and clearing out the stock of those products that are low in demand.

There are three different types of promotional codes:

Public codes: All shoppers can see a public promo code and use it if they meet certain conditions. For example, online store owners make their ‘Welcome code’ visible to everyone, but only first-time buyers can use that code. Similarly, there are some public codes that both old and new customers can use for shopping. Thanks to public promo codes, brand loyalty grows continuously, resulting in repeat purchases.

Private codes: These codes are only for a specific set of shoppers targeted by eCommerce sites. Generally, private codes are shared to turn passive customers into active ones. And sometimes, private codes are given to loyal customers as a token of appreciation.

Restricted codes: These are limited to a single user and can be used only once within a particular period. Online store owners share a restricted code with their customers when they want to apologize for late order delivery or thank them for completing a certain milestone, like making the 20th purchase.

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