What happens if a customer stacks two coupons?
Two discount codes that look harmless alone can squeeze an order down to almost no profit, as this Rs 700 example shows.
You launch a 10 percent welcome code. A week later you run a Rs 100 flat festival code. Both are reasonable on their own. Then a customer uses the two together, and you discover that your profit on that order is close to nothing. This is the stacking problem, and the arithmetic is worth seeing once.
The example order
An order is worth Rs 700 before any discount. Suppose your costs are:
- Product: Rs 450
- Shipping: Rs 70
Total cost: Rs 520. With no coupon, profit is Rs 700 minus Rs 520, which is Rs 180.
One coupon at a time
With just the 10 percent code, the discount is Rs 70. The customer pays Rs 630 and profit is Rs 110.
With just the Rs 100 flat code, the customer pays Rs 600 and profit is Rs 80.
Both are lower, yet still positive. You can live with that.
Both together
Apply the 10 percent first. That takes Rs 70 off, leaving Rs 630. Then the Rs 100 flat code takes it down to Rs 530.
The customer pays Rs 530, and your costs are still Rs 520.
Profit: Rs 530 minus Rs 520 is Rs 10.
You started with Rs 180 profit and ended with Rs 10. The two coupons together removed Rs 170, or about 94 percent of your profit, from an order that looked fine.
If packing and the payment fee have not been counted in the Rs 520, the order is already at a loss. Add Rs 30 for packing and a payment fee of a few rupees, and you are in the red.
The order of discounts matters
If the flat Rs 100 is applied first, the 10 percent then applies to Rs 600, which is Rs 60. The final price is Rs 540, giving Rs 20 profit. Small difference, but proof that sequence changes the result.
What your store does
An order record in Varchas carries one coupon code, so a single order holds one code, not two. That removes the stacking worry at the data level. If you run other offers outside the coupon, such as a manual discount on a WhatsApp order or a bundle price, those can still combine with a code in practice, so look at the total discount rather than each one alone.
How to protect yourself anywhere
- Write down every active offer and picture the worst case if a customer uses them together.
- Do the order sum above for your cheapest, thinnest-margin product, since that is where stacking hurts most.
- Put an expiry date on each code so old ones do not linger. Our post on percent-off coupon profit shows why every rupee of discount comes from profit.
- Cap the number of uses, so a leaked code cannot run wild.
- Make sure a minimum basket applies where possible. See coupon minimum order values.
Do not forget influencer or affiliate codes
If you give partners their own codes, those can overlap with your own promotions. Think through how they fit together before you hand them out. Our post on affiliates and referral links explains how they work.
The simple rule
Before you launch a code, ask what happens if it meets every other discount you offer. If the worst case leaves you with a loss, change the rules first. A thin-margin order is not the place to discover the maths.