A straightforward method Shopify customers use to get a discount is simply to guess your codes and test if they are still valid.
Retailers lack of creativity in generating discount codes, making it relatively easy to discover valid ones. Although setting an expiration date is both simple and considered a best practice, it's also prone to oversight.
For hackers, this technique is commonly known as a “dictionnary attack”.
Below, you'll find a list of the most frequently exposed coupon codes from Shopify stores, which customers are likely to attempt:
Statistics tell the story: when they look at this world-famous “Do you have a discount code?” input, 50% of Shopify users will leave your checkout to consistently hunt for promo codes.
Numerous codes may turn out to be invalid or expired (definitely not great for your brand!), but with a bit of persistence, they'll probably come across a valid one after a few minutes. Then you’re trapped and your profit margins takes a serious hit.
Google is every customer’s first instinct. They will hunt on Google by typing the keywords “your-brand discount codes” and find dozens of websites exposing your discount codes. Easy and efficient.
Have a look at this Google search for discount codes at Beekman 1802.
Social media and forums are also a must.
The best social media to get up-to-date coupon codes are Reddit, Tik Tok and X.
Reddit’s users speak freely about different topics and share their best offers to the community. On Tik Tok, the hashtag #coupon has been used more than 200 million times. On X, specialized accounts share coupon codes with their thousands of followers to get more attention.
Despite existing since many years, browser extensions have regain attention from users with the inflationay crisis in 2022-2023.
While Honey (PayPal) is the most well-known, others like Capital One and Coupert have also invested a lot in marketing to expand their user base. And there's a good reason for it: they make hundreds of millions by sneaking in affiliate links.
These extensions leverage a network of millions of users to have the most up-to-date database of valid discount codes.
Whenever a user applies a discount code, the extension scrapes it and shares it with the community. This means anyone using the extension automatically gets the same promo code. For brands, it's a total nightmare!
It’s yet another easy way to score a discount.
If you have set-up a welcome offer exclusively for new customers, using Klaviyo for Shopify for example, it’s very easy for a user to benefit from this offer multiple time by just creating multiple accounts, using email aliases or family email addresses.
Many Shopify merchants lack an effective prevention and monitoring system to avoid abuse of their welcome offers. They only verify the email as a unique identifier and do not compare other identification information such as shipping address or IP address.
Newsletter registration is often tied to welcome offers. Brands frequently provide discount codes to new subscribers, so customers can register multiple times with different email addresses to receive these discounts.
If the discount isn't a percentage, but a fixed amount, it's possible to place multiple orders for low-value products to maximize savings.
A referral program can be an effective way to earn discounts. However, the more attractive it is, the higher the likelihood of it being abused.
Consider a scenario where your referrals get a $20 discount. One common method is self-referral, where the referrer creates fake accounts to pose as referrals. By doing this, they can dishonestly accumulate rewards or benefits intended for real referrals.
Users also may collaborate with others to refer each other, essentially manipulating the system to maximize their gains.
There are specialized websites for sharing referral links and benefiting from referrals. However, while these might appear as new customers, you may end up paying a high commission solely for getting low-value customers.
Email automation sequences are becoming increasingly popular among Shopify merchants with the use of email automation tools like Klaviyo. More and more merchants are setting up email sequences for cart abandonment, offering discounts as an incentive.
As users become used to this, they often fill their cart and wait for the discount before making a purchase.
Consequently, this retention sequence may appear quite effective, pleasing your marketing team. However, how does this incentive compare to a friendly, discount-free reminder for the abandoned cart?
A rising number of apps and websites offer special discounts to specific groups, such as UniDays or StudentBeans for students, or idME for military personnel, nurses, and teachers.
However, a problem arises: it's quite easy to exploit the system by registering as a student. Many of us know someone eligible for these programs who is willing to share their codes.
Because their goal is honorable, this could be the only acceptable abuse on this list, as long as it doesn't become widespread.
The final tactic is as old as commerce itself.
To secure a good discount, the best method is to loudly complain to customer support.
Brands are so fearful of negative reviews that they readily offer discounts to dissatisfied customers. This may be the most challenging form of abuse to manage.
Examples of claims to obtain discounts might include:
In situations where you implement staggered discounts, a certain segment of your customer base might take advantage of these lower prices. They purchase your products in bulk or at a high discount rate, only to resell them individually at a higher price.
For instance, if a retailer offers a 30% discount on a bulk purchase of 10 units of a product, some customers may use this as an opportunity to buy in bulk and resell. Suppose the original price of the product is $100 per unit. With the discount, they can purchase 100 units for $700 instead of $1000. They could then resell each unit individually at a price slightly lower than the original, say $90, making a total of $900. This way, they make a profit of $200 from the reselling.
