In the competitive world of online shopping, pricing can be the deciding factor between a visitor leaving your store with nothing and making that visitor a loyal customer. When we talk about discounts on Shopify, we are not just talking about offering lower prices, we are also talking about strategically placing offers on your digital store to increase conversions, improve customer loyalty and help clear out out-of-season inventory below your ideal price point while maintaining a reasonable profit margin.
As we embark into 2025, Shopify now has more discount options for your customers, and better analytics for your discount campaigns. Whether you have a small boutique store or are a large brand, understanding how to create and optimize discounts is going to be an important skill in your entrepreneurial toolkit.
In this guide, you will learn:
- The different types of discounts you can create on Shopify
- How to set up manual and automatic discounts in your store (Latest tutorial - 2025)
- Advanced discount strategies using Shopify Apps and Paid Apps
- Performance tracking and mistakes to avoid
By the time you are done reading, you will know exactly how to create discounts on Shopify to get customers into your digital store, without compromising profit margins.
Pro Tip: Shoppers love personalized promotions. I would avoid storewide discounting all the time and look at targeted campaigns for specific groups of customers to increase ROI.
14 Types of Discounts You Can Offer on your Shopify store
Successful Shopify stores utilize intricate discount types in addition to the basic options. Here is a list of 10+ advanced discount types, when and why they are effective, and practical examples:
1. Percentage Discount
A percentage discount is one of the most common and straightforward enforceable promotion types for customers. A percentage discount simply subtracts a fixed percentage off of the product or order price. Percentage discounts can be great promotions for seasonal sales, clearance events, or welcoming new customers.
Example: 20% off sitewide during weekend sale.
2. Fixed Amount Discount
A fixed amount discount removes a defined unit currency value from the total order or a single product. Fixed discounts are great for keeping margins predictable while still offering clear savings.
Example: $500 off any order above $3,000.
3. Free Shipping Discount
Free shipping is a potent incentive that may lead to higher conversion rates and less cart abandonment from customers. The ability to offer free shipping goes even further when it involves a minimum spend for the purchase so it protects margins.
Example: Free shipping on orders of $2,500 or more.
4. Buy X Get Y (BOGO)
Purchase X and get Y deals activate customers to increase their cart size with an incentive item free or a discounted product after they purchase a set quantity of products. It is great for increasing average order value and clearing inventory!
Example: Buy 2 T-shirts, get 1 free.
5. Volume / Quantity Break Discount
Volume-based discounts give customers access to better pricing when they purchase in volume.
Volume discounts are particularly applicable for wholesale buying customers, or products customers are accustomed to purchasing in larger quantities.
Example: Buy any 5+ notebooks, save 15%.
6. Tiered Spending Discount
Tiered discounts increase the percentage off based on the total dollar amount a customer spends. This strategy encourages shoppers to spend more to reach the next percentage discount.
For example: Spend $5,000 → 10% off, Spend $10,000 → 20% off.
7. Bundle Pricing
Bundle pricing is simply offering a set of products for a special price such as a higher price point to increase purchases. Bundle pricing motivates customers to buy. It makes it easy to upsell an essential complementary product.
Example: 3 skincare products for $1200.
8. Free Gift with Purchase
Including a complimentary gift when customers hit a certain threshold creates a feeling of additional value to the purchase. It’s also a great way for creating delight among customers and a great way to promote new products.
Example: Free tote bag with orders over $4,000.
9. Customer-Segment Discount
Groups such as VIP customers, students, or loyalty program members are given discounts based on customer segments with discounts to make offers feel special.
Example: 30% off for Loyal Repeat customers.
10. First-Time Buyer Discount
This discount type is meant to entice a new customer to make their first purchase, generally in exchange for your newsletter or account signup.
Example: 10% off your first order after signup.
11. Exit-Intent / Popup Discount
Exit-intent discounts are generally triggered right before a customer is ready to leave your store, most likely in a popup window. They are extremely powerful for converting browsing visitors who are about to abandon their cart.
For example, you could pop up a simple, 5 percent off code when someone gets ready to exit your website.
12. Timed Flash Discount
Flash promos have a specific time frame in which the sale will last. This creates urgency, and can help generate immediacy for your customers to buy.. Adding a countdown timer can increase urgency further.
Example: 25% off for next 2 hours only.
13. Subscription Discount
Subscription savings can help incentivize customers to set up a recurring purchase. This can increase the customer's lifetime value and provide you repeat revenue.
Example: Save 15% on a monthly coffee subscription.
14. Custom Function-Based Discount
By means of Shopify Functions or discount applications, you can implement very specific and complex offers based on unique purchasing behavior. These advanced promotions are perfect for creative campaigns.
Example: Buy Product A + B, and get Product C at 50% off.
Ways to Create Discounts in Shopify
Shopify offers two primary methods for creating discounts, each with its own benefits depending on your store’s needs and marketing strategy.
1. Shopify’s Native Discount Feature
Create percentage, fixed amount, free shipping, or Buy X Get Y offers directly in your Shopify admin. Run them as discount codes or automatic discounts - simple, free, and fully integrated.
Example: 20% off sitewide this weekend.
2. Shopify Discount Apps
Use Shopify apps for advanced deals like tiered pricing, product bundles, loyalty rewards, and complex rule-based offers that go beyond native features. These tools are perfect for scaling stores, running personalized campaigns, and increasing average order value.
For example, the AIOD – Automatic Discount app allows you to set up multiple discounts that apply automatically at checkout, stack offers, and run advanced promotions without requiring customers to enter a code - making it easier to boost conversions.
1. Shopify’s Native Discount Functionality
Shopify has a native discount functionality that allows you to implement and administer promotions and discounts without installing apps. In the admin panel, you can configure four primary discount types:
Amount Off Products - Positive discount of a percent or fixed amount off of select products and collections.
Buy X Get Y - When a customer buys select items, they get a free or discount product.
Amount Off Order - A fixed amount or percentage off of the customer's total order amount.
Free Shipping - No shipping charge fulfills under certain criteria.
All of these options can be set up as discount codes (note, the customer enters the code in checkout) or automatic discounts (no code needed). The functionality is perfectly integrated with Shopify's checkout, and discounts are active immediately once enabled.
1. Amount Off Products
This discount type lets you reduce the price of specific products or entire collections by a set amount or percentage. Perfect for promoting certain items, clearing stock, or highlighting new arrivals.
Step 1: Open Dashboard > Discounts > Create Discounts
Step 2: Click on “Amount off products”
Step 3: Choose discount method how discount will be applied:
- Automatic discount: Discounts will be automatically applied
- Discount code: Users need to enter the discount code manually. You need to add a discount code in the input box or generate it using the admin.
Step 4: Set discount value percentage or fixed amount off.
Step 5: Additionally you can assign discounts to particular collections or products.
If you want to create a store wide discount keep it as it is.
Step 6: Eligibility of the discount.
When setting up a discount, choose who can use it:
- All Customers – Available to everyone across all channels.
- Specific Customer Segments – Target groups like VIPs, subscribers, or repeat buyers.
- Specific Customers – Apply to selected individuals only.
Step 7: Minimum purchase requirements
Set conditions customers must meet to use the discount:
- No Minimum Requirements - Discount applies to all orders.
- Minimum Purchase Amount - Only applies when the order reaches a set value.
- Minimum Quantity of Items - Requires buying a certain number of products.
Step 8: Maximum discount uses
Control how often a discount can be redeemed:
- Limit Total Uses – Set a cap on how many times the discount can be used storewide.
- Limit Per Customer – Restrict to one redemption per customer.
Step 9: Combinations
Decide if your discount can be used alongside other active discounts:
- Product Discounts – Stack with other product-level offers.
- Order Discounts – Combine with cart-wide promotions.
- Shipping Discounts – Pair with free or reduced shipping offers.
Step 10: Set Active dates & click “Save discount”
2. Buy X Get Y
This discount offers customers a free or discounted product when they purchase a set quantity of another product. It’s great for increasing average order value and moving inventory faster.
Step 1: Open Dashboard > Discounts > Create Discounts
Step 2: Click on “Buy X get Y”
Step 3: You can apply a Buy X Get Y discount in two ways:
- Automatic discount: Applied at checkout without the customer entering anything.
- Discount code: Customers must enter a code you create or generate in the Shopify admin.
Step 4: Customer buys rule creation.
- Choose Condition Type: Select whether the offer is based on a Minimum quantity of items (e.g., Buy 2 items) or a Minimum purchase amount (e.g., Spend $50).
- Enter Quantity or Amount: In the field provided, type the exact number of items or the amount customers must purchase to qualify for the offer.
- Select Product Scope: From the dropdown, choose if the rule applies to specific products or collections in your store.
- Browse & Add Products: Click the Browse button to select the main products that will trigger the BOGO offer. This is the qualifying purchase; when customers buy these items, the “Get Y” part of the deal will apply.
Step 5: Customer gets (Customers must add the quantity of items specified below to their cart.)
- Quantity: Enter the number of items the customer will receive as part of the BOGO deal.
- Any items from: Choose whether the offer applies to specific products or specific collections.
- Browse: Click this to select the exact products customers can get as the free or discounted item.
- Set how the discount applies: a percentage off, a fixed amount off each item, or completely free.
- Set a maximum number of uses per order: Limit how many times the offer can be applied in a single order (e.g., max 1 free item per order).
Step 6: Eligibility of the discount.
When setting up a discount, choose who can use it:
- All Customers – Available to everyone across all channels.
- Specific Customer Segments – Target groups like VIPs, subscribers, or repeat buyers.
- Specific Customers – Apply to selected individuals only.
Step 7: Maximum discount uses
Control how often a discount can be redeemed:
- Limit Total Uses – Set a cap on how many times the discount can be used storewide.
- Limit Per Customer – Restrict to one redemption per customer.
Step 9: Combinations
Decide if your discount can be used alongside other active discounts:
- Product Discounts – Stack with other product-level offers.
- Order Discounts – Combine with cart-wide promotions.
- Shipping Discounts – Pair with free or reduced shipping offers.
Step 10: Set Active dates & click “Save discount”
3. Amount Off Order
This discount type reduces the total order value by a fixed amount or percentage. It applies to the whole cart instead of specific products, making it ideal for storewide sales or minimum-spend promotions.
Step 1: Open Dashboard > Discounts > Create Discounts
Step 2: Click on “Amount off order”
Step 3: Creating discounts
Method – Choose how the discount will be applied:
- Discount Code: Customers must enter a code at checkout.
- Automatic Discount: Applied automatically when conditions are met.
Discount Value: Set the discount type (percentage or fixed amount) and enter the value to reduce from the total order.
Eligibility: When setting up a discount, choose who can use it:
- All Customers – Available to everyone across all channels.
- Specific Customer Segments – Target groups like VIPs, subscribers, or repeat buyers.
- Specific Customers – Apply to selected individuals only.
Step 4: Create rules
Minimum Purchase Requirements: Set conditions for discount eligibility: no minimum, a minimum spend amount, or a minimum quantity of items.
Maximum Discount Uses: Limit how many times the discount can be used overall or per customer.
Combinations: Allow the discount to be combined with other product, order, or shipping discounts.
Active Dates: Schedule when the discount starts and optionally ends, with specific dates and times.
Save Discount: Click to apply all settings and activate the discount.
4. Free Shipping
A discount type in Shopify that removes shipping costs for eligible orders. You can set conditions like minimum purchase amounts, specific regions, or customer groups to control availability.
Step 1: Open Dashboard > Discounts > Create Discounts
Step 2: Click on “Free shipping”
Step 3: Choose a discount method and how the discount will be applied.
Automatic discount: Discounts will be automatically applied
Discount code: Users need to enter the discount code manually. You need to add a discount code in the input box or generate it using the admin.
Step 4: Select the countries for the discount rule.
- All countries: Discount will be applied to all the countries.
- Selected countries: Select the countries where you want to offer free shipping.
Shipping rates: Exclude shipping rates over a certain amount, tick this and add the shipping amount for free shipping threshold.
Step 5: Eligibility of the discount.
When setting up a discount, choose who can use it:
- All Customers – Available to everyone across all channels.
- Specific Customer Segments – Target groups like VIPs, subscribers, or repeat buyers.
- Specific Customers – Apply to selected individuals only.
Step 6: Minimum purchase requirements
Set conditions customers must meet to use the discount:
- No Minimum Requirements - Discount applies to all orders.
- Minimum Purchase Amount - Only applies when the order reaches a set value.
- Minimum Quantity of Items - Requires buying a certain number of products.
Step 7: Maximum discount uses
Control how often a discount can be redeemed:
- Limit Total Uses: Set a cap on how many times the discount can be used storewide.
- Limit Per Customer: Restrict to one redemption per customer.
Step 8: Combinations
Decide if your discount can be used alongside other active discounts:
Product Discounts: Stack with other product-level offers.
Order Discounts: Combine with cart-wide promotions.
Step 9: Set Active dates & click “Save discount”
2. Creating Discounts with a Shopify Discount App
While Shopify has a native discount tool that is very useful for basic things such as percentage off, fixed amount off, free shipping, and Buy X Get Y promotions, third-party discount apps open the door to greater functionality for more advanced discount promotions. With third-party discount apps, shop owners can set up highly customized and flexible offers that go beyond what is possible with Shopify's native discount tool.
Using a discount app such as AIOD (All-in-One Discount), shop owners can set up layered, dynamic or conditional promotions to target the needs of different customer behaviors to help maximize conversions. These third-party apps not only integrate directly into your store, but often provide a greater number of rules, triggers, and promotional styles to align with unique marketing campaigns.
Capabilities You Can Typically Access through Discount Apps that Natives Shopify Discounts Don't Offer:
- Combine as many discounts as you want, on a single order without limitation.
- Create tiered discounts (e.g. buy 2 at 10% off, buy 4 at 20% off).
- Create volume-based pricing tables shown directly on product pages.
- Apply customer-based pricing, based on tags/segments.
- Combine multiple discount types (e.g. percentage + free gift).
- Schedule discounts to recur at certain times/days.
- Set different offers, regions or currencies.
By using a discount app, merchants can create flexible, marketing-driven promotions that adapt to store strategies and customer needs - without being limited by Shopify’s native discount framework.
Best Practices for High-Converting Discounts
- Identify a specific goal: Identify a specific goal for the discount, even if it is to stimulate sales, move slack inventory, attract new customers, or reward shoppers for being repeat customers.
- Create a sense of urgency: Create urgency with limited time offers and countdown timers.
- Provide Value but Consider the Margins: Make sure you are choosing a discount that brings in customers not returns.
- Be Targeted with Offers: Structure your offer to specific customer audiences – eg. New customers, repeat customers, or an assortment discount.
- Communicate Your Offer through Marketing Channels: Promote your discount (offer) on your website, across social media, email campaigns and ads.
Common Mistakes to Avoid
- Failing to check profit margin when setting discounts - Making discounts that will cut into your profit.
- Unintentionally stacking discounts - Not putting limits on use, and double or triple discounting.
- Not setting an expiration date - Allowing discounts to go on forever, and start destroying brand value.
- Using ambiguous discount codes - Using codes like "SALE" which will get out everywhere and be misused.
- Discounting accidentally on best sellers - Discounting products they already sell well without an offer.
- Not testing the discount flow before launching - Errors occurring at checkout.
- Ignoring mobile optimization - Discount banners or pop-ups don't work on mobile devices.
- Not paying attention to redemption data - Not knowing or understanding what discounts are driving actual sales.
- Using contradictory discount terminology - Customers that are unclear that "up to 50% off" does not mean a flat 50%.
- Not promoting the discount - Creating offers and barely mentioning them in any channels.
Conclusion
Discounts on Shopify in 2025 are now more flexible and intuitive, giving the store owners more options for acquiring and retaining customers. The discount process is faster, more customizable, and easier to manage, whether you are using Shopify’s built-in discount tools or advanced discount apps.
As with any other marketing strategy, the biggest takeaway is to know who you are selling to, choose the right type of discount, and judge its effectiveness. Done strategically, discounts can motivate customers to purchase more products, while also reinforcing customer loyalty - both important contributors to making your store successful in an ever-evolving competitive eCommerce market.
FAQs – How to Create Discounts on Shopify (2025)
- How do I set up a discount in Shopify?
To set up a discount in Shopify, navigate to Discounts in your Shopify Admin, click Create discount, then Discount code. Choose the type of discount (e.g., percentage or fixed value), set any conditions (eligibility, minimum purchase), choose dates for the discount, and then Save.
- Can I create automatic discounts in Shopify?
Yes, you can. Shopify allows you to create automatic discounts which apply once a customer reaches the checkout, without needing a discount code. However, Automatics discounts native to Shopify are very limited (for instance, only one automatic discount can be active at any one time). For automatic discount advanced features like stacking offers, volume discounts, and tiered prices, you can use a discount app that you can find in the Shopify App Store.
- Can I set discounts for specific products/collections?
Of course! When you set up a discount you can choose to restrict it to products, collections or to your entire store. This allows you to promote targeted offers related to end of season sales, overstock clearance, and new arrivals.
- How can I set up a discount for a first-time customer?
You can create a discount code specifically for new customers by applying customer conditions. For example, you create a discount code that is called “WELCOME10” and you set the condition to “Customer must have 0 previous orders.” Now only first-time customers can use the code.
- Can I schedule discounts in advance?
Yes. While you are creating the discount, there are start and end dates that you can set. This is handy if you want to plan a seasonal sale, flash sale, or holiday offer in advance.
- Can I combine discounts in Shopify?
Shopify allows customers to use one discount code and one automatic discount at a time. If you want to combine discounts, for example a volume discount + free shipping, then you would need a third-party discount app that allows discount stacking.
- What is the difference between discount codes and automatic discounts?
Discount Codes - Customers must manually input at checkout.
Automatic Discounts - will apply automatically when the customer meets your set conditions, no code is necessary.
>>> Learn More: How to create One discount for multiple savings in Shopify?
