Discounts are a powerful tool to attract new customers, boost sales, and increase customer loyalty in your Shopify store. Whether it's a seasonal promotion, a special discount code, or an automatic discount, Shopify provides various ways to offer discounts. Our blog walks you through the process of setting up discounts on Shopify, with tips on using apps like Coupon Coupon on Cart to maximize your store's potential.

Shopify Discounts

Shopify offers a versatile set of discount options that can cater to a wide range of promotional strategies. Understanding these options is crucial for leveraging them effectively to boost sales, clear inventory, or increase customer loyalty.

1. Discount Codes

Discount Codes are promotional codes that customers manually enter during checkout to receive a discount. They are highly flexible and can be tailored to specific marketing campaigns, customer segments, or seasonal promotions.

Usage Scenarios: 

Ideal for targeted marketing campaigns, such as rewarding newsletter subscribers, offering discounts to first-time buyers, or running a holiday sale.

Customization: 

You can customize discount codes based on percentage discounts (e.g., 20% off), fixed discounts (e.g., $10 off), or free shipping. In addition, you can specify which products, collections, or entire orders are eligible for the discount.

Advanced Options: 

You can set usage limits, such as restricting the code to one-time use per customer, and establish minimum purchase requirements to ensure profitability.

2. Automatic Discounts

Automatic Discounts are applied automatically at checkout, without the customer needing to enter a code. This seamless experience can significantly reduce cart abandonment rates and encourage impulse purchases.

Usage Scenarios: 

Perfect for broad, site-wide promotions or specific campaigns like Buy One Get One Free (BOGO) offers, where simplicity and speed are key.

Flexibility: 

You can create automatic discounts for a variety of conditions, such as specific products, collections, cart totals, or customer segments. These discounts are applied as soon as the conditions are met, streamlining the customer experience.

Limitations: 

Shopify only allows one automatic discount to be active at a time. However, combining an automatic discount with a discount code (where the customer must choose one) can still offer flexibility.

3. Buy X Get Y Discounts 

Buy X Get Y Discounts are a specific type of discount where customers receive a free or discounted item (Y) when they purchase a specific quantity of another item (X). This type of discount is particularly effective for cross-selling or clearing out less popular inventory.

Usage Scenarios: 

Ideal for promoting complementary products, clearing out seasonal stock, or incentivizing larger purchases. This type of discount can also be used to introduce new products by bundling them with best-sellers.

Customization: 

You can set the discount to apply to specific products, collections, or categories. For example, “Buy 2 T-Shirts, Get 1 Free” can be an effective way to drive sales during a seasonal clearance.

4. Shipping Discounts

Shipping Discounts offer customers free or reduced shipping rates, which can be a significant motivator for completing a purchase. High shipping costs are one of the primary reasons for cart abandonment, so offering a shipping discount can directly impact your conversion rate.

Usage Scenarios: 

Perfect for online stores with high shipping costs or those looking to compete with larger retailers that offer free shipping as a standard. Shipping discounts can also be used as a threshold incentive, such as offering free shipping on orders over a certain amount.

Implementation: 

You can set shipping discounts based on various conditions like cart value, shipping destination, or specific products. For example, you might offer free shipping on orders over $50 or on all domestic orders during a promotional period.

Also Read: The Benefits of Shopify Cart Discounts in 2024

Key Considerations for Using Shopify Discounts

When implementing discounts, it’s essential to balance attracting customers with maintaining your profit margins. Here are some key considerations:

1. Profitability

Always calculate the impact of discounts on your profit margins. Offering too deep a discount might attract customers but could also reduce your profitability. Consider the lifetime value of customers gained through discounts to determine their effectiveness.

2. Customer Perception

Discounts should be used strategically to maintain the perceived value of your products. Frequent or deep discounts can condition customers to only shop when there’s a sale, potentially devaluing your brand in the long term.

3. Legal and Tax Implications

Ensure that discounts comply with local laws and regulations, particularly concerning advertised pricing and taxes. For instance, some regions may require that the original price and the discounted price be displayed clearly.

4. Analytics and A/B Testing

Use Shopify’s analytics tools or integrated apps to monitor the performance of your discounts. A/B testing different discount types and promotional strategies can help you determine which are most effective in driving sales and improving customer loyalty.

Also Read: How to Create Discount Codes on Shopify?

Discount Codes on Shopify

Discount Codes are a versatile and powerful tool for creating customized promotions tailored to your marketing goals. Whether you’re running a seasonal sale, rewarding loyal customers, or encouraging first-time buyers, discount codes can be an effective way to drive traffic and increase conversions.

Step 1: Navigate to the Discounts Section

• Log in to your Shopify admin panel.
• On the left-hand sidebar, select Discounts. This will take you to a page where you can manage all your discount codes and automatic discounts.

Step 2: Create a New Discount

• Click on the Create Discount button at the top right corner.
• Choose Discount Code from the options presented. This will open a new setup page where you can configure your discount.

Step 3: Configure Your Discount Code

This step involves setting the parameters that define how and when your discount code will be applied.  Enter a unique code that customers will input at checkout. This could be something simple like “SAVE20” or more specific to a campaign, like “HOLIDAYGIFT”.

For example

Step 4: Set Active Dates

• Set the start and end dates for the discount. You can choose to make the discount available immediately or schedule it for a future date.
• If you want the discount to be available indefinitely, you can leave the end date open.

Step 5: Review and Save Your Discount Code

Before saving, review all the parameters to ensure they align with your promotional strategy.

Click Save to activate the discount code. Your customers can now start using it during checkout.

Automatic Discounts on Shopify

Automatic Discounts streamline the customer experience by applying discounts automatically at checkout when certain conditions are met. This reduces friction and can lead to higher conversion rates, as customers don’t need to remember or enter a discount code.

Step 1: Access the Discounts Section

In your Shopify admin panel, go to the Discounts section from the left-hand menu.

Step 2: Create a New Discount

Click on Create Discount and select Automatic Discount from the options. This will open a setup page where you can configure the automatic discount.

Step 3: Configure Your Automatic Discount

Automatic discounts are highly customizable, allowing you to set precise conditions under which the discount will apply:

• Discount Name: Name your discount to easily identify it later. 
• Discount Type: Percentage Discount, Fixed Amount Discount, and Buy X Get Y
• Applies To: Entire Order, Specific Collections or Products
• Minimum Requirements: No Minimum Purchase, Minimum Purchase Amount, Minimum Quantity.

Step 4: Set Active Dates

You can either set it to start immediately or schedule it for a future date. Decide if the discount should run continuously or for a limited time.

Step 5: Review and Save Your Automatic Discount

Click Save to make the automatic discount live on your store. It will now be applied automatically when customers meet the set conditions.

Also Read: How to Connect Coupon Discount on cart to Your Shopify Store?

Advanced Discount Features with Apps

While Shopify’s built-in discount tools are robust, adding specialized apps to your store can significantly improve your discount strategies. These apps provide advanced features that can help you create more complex discounts, target specific customer behaviors, and display discounts more prominently to maximize conversion rates.

1. Coupon Discount on Cart

The Coupon Coupon on Cart app displays available discount codes directly on the cart page, making it easy for customers to apply discounts before checkout. This can reduce cart abandonment and increase sales by ensuring customers are aware of and use available discounts.

Key Features:

• Automatic display of applicable discount codes on the cart page.
• Seamless integration with Shopify’s discount system.
• Customizable appearance to match your store’s theme.

Why Use It? 

Customers often abandon carts when they have to search for or remember discount codes. By displaying available discounts directly on the cart page, this app helps to streamline the checkout process and reduce friction.

2. Bold Discounts‑ The Sale App

Bold Discounts is a powerful tool for running sales and discounts across your entire store or specific products. It allows you to schedule discounts, create flash sales, and automate discount rules.

Key Features:

• Schedule and automate discounts across your store.
• Create flash sales with countdown timers to create urgency.
• Integrate with other Shopify apps for improved functionality.

Why Use It? 

This app is perfect for running large-scale sales events, such as Black Friday or holiday promotions, where you need to quickly and efficiently manage multiple discounts across various products or collections.

3. Automatic Discount & Gift

Automatic Discount & Gift improves Shopify’s native discounting capabilities by allowing you to create complex discount rules, such as applying discounts based on cart contents or customer behavior.

Key Features:

• Automatically apply discounts when specific conditions are met, like a certain cart total or product combination.
• Offer gifts with purchases to incentivize higher cart values.
• Detailed analytics to monitor the performance of your discounts.

Why Use It? 

If you want to offer more sophisticated promotions, such as tiered discounts or conditional offers, this app provides the flexibility and control needed to implement them effectively.

4. Sales Motivator

The Sales Motivator app encourages customers to add more items to their cart to qualify for free shipping. The bar updates in real-time as customers add items, motivating them to reach the threshold.

Key Features:

• Customizable gift or offer that displays progress towards purchase completion.
• Real-time updates as customers add items to their cart.
• Option to offer different thresholds for domestic and international orders.

Why Use It? 

High shipping costs are a common reason for cart abandonment. By using a free shipping motivator, you can increase your average order value (AOV) while reducing abandonment rates.

Maximizing the Impact of Discount Apps

To fully use these apps, it’s essential to integrate them into a broader discount strategy. Combining Coupon Discount on Cart with apps like Bold Discounts or Automatic Discount & Gift can create a layered approach that addresses various customer pain points, from discount visibility to complex purchase incentives. By strategically using these apps, you can not only improve the customer experience but also drive significant revenue growth through targeted and effective discounting strategies.

Best Practices for Using Discounts

While discounts can drive sales, they must be used strategically to avoid diminishing your brand value or cutting too deeply into your margins. Here are some best practices:

1. Use Discounts to Create Urgency
2. Segment Your Audience
3. Test and Measure

How To Promote Your Discounts?

Setting up discounts is only part of the equation; promoting them effectively is crucial. Here are some channels to consider:

1. Email Marketing

Use email campaigns to notify your customers about upcoming discounts. Tools like Klaviyo make it easy to segment your audience and personalize messages.

2. Social Media

Promote discounts across your social media channels. Consider using Hootsuite or Buffer to schedule posts in advance.

3. On-Site Banners

Use apps like Privy to create eye-catching banners that alert visitors to discounts and special offers.

Discount Apps for Maximum Impact

To truly maximize the impact of discounts on your Shopify store, consider integrating a discount app like Coupon Discount on Cart. This app makes it easy for customers to apply discounts and improves their shopping experience by displaying available discounts upfront, thus reducing cart abandonment rates. By combining this with other apps like Bold Discounts or Automatic Discount & Gift, you can create a comprehensive discount strategy that boosts sales while maintaining customer satisfaction.

What Will Be Your Next Move?

Setting up discounts on Shopify is a simple process, but with the right apps, you can take your discount strategy to the next level. Whether you’re looking to run simple discount codes or complex automatic discounts, leveraging tools like Coupon Discount on Cart can improve your store’s performance and drive significant revenue growth.

Remember to promote your discounts effectively and measure their impact to ensure you’re getting the best results. With the right approach, discounts can be a powerful tool to boost your Shopify store’s sales and customer loyalty.