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Shopify Discount Code Glossary

Plain-language definitions for the terms that come up most when running Shopify discount code campaigns — from discount types to the safeguards that prevent abuse. Each entry leads with a direct, one-sentence definition.

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Amount-off discount

A discount that reduces an order's total by a fixed dollar figure (e.g. $10 off), regardless of cart size. It tends to feel more concrete than a percentage discount on lower-priced items, since the savings is a specific number rather than a calculation.

Automatic discount

A discount that applies to qualifying orders instantly, with no code required at checkout. Automatic discounts remove friction for the shopper but make it harder to attribute a sale to a specific campaign, since there's no code redemption to trace back.

Average order value (AOV)

The average dollar amount spent per order across a set of transactions. In discount code analysis, AOV is used to compare how much customers spend when redeeming different types of codes — unique codes have been shown to drive meaningfully higher AOV than generic codes.

Average selling price (ASP)

The average price paid per unit sold, after any discount is applied. ASP is one of the clearest ways to measure whether a discount is protecting or eroding margin across a campaign.

BFCM discount strategy

A discount approach built specifically for the Black Friday/Cyber Monday period, when inbox competition is highest. Because timing matters nearly as much as the offer itself during BFCM, many brands pair discount codes with send-time optimization and shift toward unique, segment-specific codes to control redemption volume during the highest-traffic weekend of the year.

Bulk discount code generation

The process of creating large batches of unique discount codes in a single action, rather than one at a time. Shopify's native admin only supports creating unique codes individually; dedicated apps generate unlimited codes per batch, with some merchants generating over a million codes at once.

Coupon leak

The unintended spread of a discount code beyond its intended audience, most often when a generic, reusable code gets posted to a coupon-aggregator site and redeemed by shoppers who were never part of the original campaign. Coupon leaks are the main reason generic codes erode margin on targeted promotions.

Customer eligibility rules

Conditions set on a discount that restrict who can redeem it — for example, limiting a code to new customers only, to a specific segment, or to a single use per customer. Eligibility rules are one of the core safeguards against discount abuse.

Discount code

A string of characters a shopper enters at checkout to receive a price reduction — a percentage off, an amount off, or free shipping. Discount codes can be generic (reusable by many shoppers) or unique (randomly generated and tied to a single recipient).

Discount risk audit

A review of active discount codes and sets to identify missing safeguards — codes without expiration dates, without usage limits, or without customer eligibility rules. These gaps are the most common way a discount campaign ends up abused or leaked beyond its intended audience.

Learn more about Seguno's Discount Risk Audit.

Discount set

A batch of discount codes created and managed together under shared settings — discount type, value, eligibility rules, and expiration. Performance is typically tracked at the discount-set level, which is what makes it possible to compare one campaign's results against another.

Free shipping discount

A discount that waives shipping costs instead of reducing the product price. It often converts price-sensitive shoppers effectively without discounting the product itself, which can make it a margin-friendlier option than percentage or amount-off discounts in some cases.

Generic discount code

A single, often memorable discount code (e.g. “SALE20”) that many shoppers can redeem. Generic codes are fast to set up and well suited to broad, sitewide promotions, but they're also the type of code most likely to leak onto coupon-aggregator sites.

Percentage-off discount

A discount that reduces an order's total by a percentage (e.g. 20% off) rather than a fixed amount. Because the dollar value scales with cart size, percentage-off discounts tend to perform best on higher-value orders.

Unique discount code

A randomly generated, one-time-use discount code tied to a single recipient. Because it can only be redeemed once, a unique code can't meaningfully leak to a coupon site the way a generic code can, and every redemption is cleanly attributable to one campaign. Benchmark data: unique codes drive 32% higher click rate, 127% higher average selling price, and 39% higher average order value than generic codes (analysis of 182M Shopify discount codes).

Usage limit

A cap on how many times a discount code can be redeemed — commonly set to one redemption per code for unique-code campaigns. Along with an expiration date and eligibility rules, a usage limit is one of the three core safeguards against discount abuse.

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Want the full data behind these terms?

The Ultimate Guide to Shopify Discount Codes breaks all of this down in detail, backed by benchmark data from 182 million discount codes.

The Ultimate Guide to Shopify Discount Codes by Seguno, the makers of Bulk Discount Code Bot for Shopify merchants
Matthew Bertulli, CEO, Pela Case

Crazy useful tool.
If you generate as many codes as we do (we’re talking tens of thousands) for a variety of use cases and campaigns, then this is a must-have.
Simple and easy to use to generate thousands of codes in bulk in a minute or two."
- Matthew Bertulli, CEO, Pela Case