• Discounts are reductions to a basic price of goods or services. They can occur anywhere in the distribution channel, modifying either the manufacturer's list price, the retail price, or the list price. The market price is the amount actually paid. The purpose of discounts is to increase short-term sales, move out-of-date stock, reward valuable customers, encourage distribution channel members to perform a function, or otherwise reward behaviors that benefit the discount issuer. Some discounts are forms of sales promotion.
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    In marketing a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, magazines, newspapers, the Internet, and mobile devices such as cell phones.

    Online retailers often refer to Internet coupons as coupon codes, promotional codes, promotion codes, discount codes, key codes, promo codes, surplus codes, shopping codes, voucher codes, or source codes. Internet coupons typically provide for reduced cost or free shipping, a specific dollar or percentage discount, or some other offer to encourage consumers to purchase specific products or to purchase from specific retailers.

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