Shopify Discount: A Completed Guide for Beginners (2024)

This blog post is your easy-to-follow guide on using Shopify discount features to attract and retain customers. I will explain basic and advanced discount types, how to create discounts on Shopify, and introduce helpful apps like BOGOS for free gifts and Bundler for bundle discounts. Plus, learn quick tips to promote discounts on your homepage, emails, and social media to maximize sales. Let’s go!

1. All types of Shopify Discount

Shopify offers a variety of discount options. These discounts fall into 2 main categories: basic discounts, which you can set up directly within Shopify’s built-in tools, and advanced discounts, which require additional apps for more complex promotions.

Basic Discounts

You can access Shopify’s built-in discount tool when you open a Shopify store. Think of it as your starter pack for creating simple discounts. You can access this feature in your Shopify admin under the “Discounts” section. Here are some basic discount types you can set up:

• Amount Off Order Discount

This is a popular Shopify discount. You can set either a fixed amount (like $10 off) or a percentage (20% off).  For example, you might offer “$15 off orders over $75” or “25% off your entire purchase.” This works great for seasonal sales or when you want to boost overall sales.

• Product Discount

Want to discount specific items? Product discounts let you mark down individual products or collections. You could offer “30% off all winter jackets” or “$5 off our best-selling coffee mugs.” This is perfect when you need to clear out certain inventory or promote specific product lines.

• Buy X Get Y

Buy X Get Y promotions encourage customers to buy more by offering a reward product. For example, “Buy any 2 t-shirts, get 1 free” or “Buy a shampoo, get a conditioner 50% off.” You can set how many items customers need to buy (X) and what they’ll get as a reward (Y).

• Free Shipping

Simple but powerful – offer free shipping when orders meet your conditions. You might set “Free shipping on orders over $100” or “Free shipping on all US orders.” This helps reduce cart abandonment, especially when customers see shipping costs at checkout.

Advanced Discounts

Sometimes, you need more complex discounts than what Shopify’s basic tools offer. This is where Shopify apps come in – they’re like add-ons you can install from the Shopify App Store. While they usually cost extra (typically $10-30 monthly), they give you more powerful discount options:

• Quantity Discounts

Quantity Discounts automatically adjust prices based on how much customers buy. For example: “Buy 1-4 items at $20 each, 5-9 items at $17 each, 10+ items at $15 each.” This works great for wholesale or bulk purchases and encourages customers to buy more to save more.

• Product Bundle

Create packaged deals that combine multiple products at a special price. For example, “Buy a complete skincare set (cleanser + toner + moisturizer) for $75 instead of $100.” Apps let you create more complex product bundles and automatically adjust prices when customers add all required items.

• Free Gift With Purchases

Automatically add free gifts to orders that meet certain conditions. For instance, “Get a free makeup bag with any $50 cosmetics purchase” or “Choose your free sample with orders over $75.” Apps make it easier to manage inventory and automatically add gifts to qualifying orders.

• Buy X Get Y Auto Add to Cart

This is like the basic Buy X Get Y, but smarter. The app automatically adds the free or discounted item to the cart when conditions are met. For example, if a customer adds two t-shirts, the third one automatically appears at the discounted price in their cart. This creates a smoother shopping experience since customers don’t need to manually add the reward product.

2. 2 Types of Shopify Discount Method

Shopify offers two primary methods for customer discounts: automatic discounts and discount codes. Let’s examine how they differ. 

Feature	Automatic Discount	Discount Code
Application	Applied automatically at checkout	Requires code entry by customer
Setup	Configured in Shopify admin with set conditions	Created in Shopify admin with custom parameters
Customer Action	No action is needed; it applies directly	Customer must enter the code at checkout
Ideal Use Cases	Site-wide sales, seasonal promotions	Exclusive deals, targeted offers, influencer partnerships
Limitations	Only one can be active at a time	Customers may miss out if they forget to enter the code

Both methods have their place in a strong promotional strategy. Your choice should align with your immediate business goals and target customer behavior. Consider using both types at different times to maximize your store’s promotional effectiveness.

3. How to create discounts on Shopify using Shopify native discount?

Create Shopify Discounts using Discount Code

Create Shopify Discounts using Automatic Discount

Step 1: Configure Automatic Discount

• Choose Automatic discount as the method.
• Enter a title for the discount, which customers will see at checkout (e.g., “Ride the Savings – Discount Applied at Checkout”).

Step 2: Set Discount Value and Criteria

• Define the discount type (e.g., Percentage or Fixed amount) and value.
• Select the specific products this discount applies to.
• Use the Browse button to pick specific products.

Step 3: Set Availability and Minimum Purchase Requirements

• Decide if this discount is available on all channels or only certain ones, like POS.
• Set any minimum purchase requirements (e.g., minimum quantity of items).

Limitations of Using Shopify’s Native Discounts

• Auto Add-to-Cart Feature

Shopify’s native discount system lacks an automatic add-to-cart feature. This means you can’t set up automatic product bundles where specific items are added to the cart at a discounted price. 

For example, if you want to create a “Buy shampoo, get conditioner at 50% off” deal, customers must manually add both items to their cart.

• Discount Combinations

Shopify allows for the combination of certain types of discounts. However, combining multiple order-level discounts or stacking various discount codes can be challenging and may not be fully supported.

• Limit of 25 Active Discounts

Shopify sets a firm limit of 25 active discounts at any time. This restriction can be particularly challenging during busy seasons when you need to run multiple promotions. This limit quickly becomes insufficient for larger stores with various product categories or those running different marketing campaigns. 

So, to solve these challenges, Shopify Discount Apps are your saver. These apps offer:

• Automatic bundle creation features
• Multiple discount combinations
• Unlimited active discounts
• Advanced promotion rules
• Better tracking and analytics

Next, I will introduce the best 3 Shopify discount apps that combat all set challenges.

4. Best 3 Most-Used Shopify Discount Apps 

If you’re wondering how to create discounts on Shopify beyond the basics, BOGOS, Bundler, and AIOD are among the best apps. Here’s a closer look, with some personal insight on what makes these apps effective. From my experience, BOGOS is still the best. I swear!

Free Gift, Bundle, Automatic Discount: BOGOS

BOGOS is designed to make “Buy One, Get One” offers, free gifts with purchases, and various bundle discounts easy to set up. This app enables merchants to automatically add products to a cart as part of a promotion, creating a smooth shopping experience. It’s ideal for increasing average order value with volume and bundle discounts.

• Key Features:
  • Supports BOGO, Free Gift With Purchase, Product Bundles, Volume Discount, and Quantity Break. 
  • Customizable rules for discounts based on specific criteria (e.g., URL, customer tags).
  • Auto add-to-cart for gifts, making the promotion visible instantly in the cart.
  • Real-time analytics to track the performance of your promotions.
• Pricing Plans:
  • Basic: $29.99/month
  • Professional: $49.99/month
  • Unlimited: $69.99/month
  • Plus: $99.99/month
• Reviews & Ratings:
  • Rated 4.9/5 from over 2,200 reviews.
  • Merchants praise its ease of use and the flexibility of BOGO and gift promotions.

Compared to Bundler and AIOD, BOGOS is highly focused on BOGO and free gift promotions, making it a strong choice if you frequently run these types of campaigns.

Bundle Builder: Bundler

Bundler is a great app for stores looking to create and manage product bundles easily. It allows you to set up discounts for multiple items purchased together, increasing the average order value. With its Mix & Match bundles and quantity breaks, Bundler offers a simple way to promote bundles and tiered discounts.

• Key Features:
  • Allows Mix & Match and classic bundle offers.
  • Supports quantity breaks and tiered discounts for bulk purchases.
  • Compatible with subscription products, offering flexibility for repeat customers.
  • Option to create custom landing pages to promote bundles effectively.
• Pricing Plans:
  • Free Forever: $0
  • Premium: $6.99/month
  • Executive: $9.99/month
• Reviews & Ratings:
  • Rated 4.9/5 from 1,800+ reviews.
  • Users highlight its user-friendly interface and versatility for bundle promotions.

Compared to BOGOS and AIOD, Bundler specializes in managing bundles and volume discounts, making it perfect for stores that rely on bundle-based offers.

Product Discount: AIOD (All-in-One Discount)

AIOD is a versatile app that offers various discounts, including tiered pricing, BOGO, and volume discounts. It allows you to stack multiple discounts and automatically add items to the cart, providing a seamless experience for both the merchant and the customer. This app is particularly useful for stores that want a wide range of discount options in one tool.

• Key Features:
  • Supports stackable discounts like tiered pricing, BOGO, and bulk discounts.
  • Auto add-to-cart for free gifts or BOGO products.
  • Progress messages to encourage customers to reach discount thresholds.
  • Flexible setup options with customizable rules for complex discounts.
• Pricing Plans:
  • Development Store: Free
  • Basic: $9.99/month
  • Shopify: $14.99/month
  • Advanced Shopify: $24.99/month
• Reviews & Ratings:
  • Rated 4.8/5 with 390+ reviews.
  • Users find it powerful for complex discount needs, with helpful support for setup.

Compared to the two above apps, AIOD offers the most diverse range of discount options, making it ideal for stores needing flexibility in discount structures.

5. How to create discounts for specific customer groups on Shopify?

By segmenting your customers and offering targeted promotions, you can enhance the shopping experience and encourage repeat business.

Basic Customer Groups on Shopify

• First-time customers (who haven’t purchased)
• Repeat customers (purchased more than once)
• Cart abandoners (last 30 days)
• Email subscribers
• One-time buyers (purchased at least once)
• VIP customers (can be created based on spending)
• Specific location-based groups
• Tagged customer groups

A Quick Guide to Creating Customer-Specific Discounts

To set up targeted Shopify discounts, let’s create your desired discount as usual (you can follow the steps above). Then, select “Specific customer segments” under Customer eligibility when creating a new discount. 

You’ll see a search bar with a “Browse” button that reveals different customer segment options. Here, you can choose from pre-set groups. Each segment helps you target specific customer behaviors and purchase patterns.

Note: You can create a new segment from the Segments Page.

6. Promoting Discounts on Shopify

Getting the word out about your discounts is just as important as creating them. Here’s how you can effectively promote your Shopify discounts through different channels.

Homepage, Banners, and Popups

Your store’s homepage is where most customers land first, making it perfect for discount promotions. Place a simple announcement bar at the top of your page with your current offer – this keeps customers informed without being pushy. 

When designing popups, timing is everything. Instead of showing them right away, wait until visitors have browsed for at least 10 seconds or when they’re about to leave. This gives them time to see your products first. 

Make your discount message clear and direct, such as “Save 20% on your first order” rather than complex terms. For seasonal sales, update your homepage banner with themed designs that match the occasion, like autumn colors for fall sales or snow effects for winter promotions.

Case Study: MVMT Watches showed how effective well-timed popups can be. They displayed their 30% discount popup only when visitors were about to leave the site, leading to an 85% increase in email signups. Their success came from simple, clean designs that matched their brand style.

Email Marketing

Email helps you reach customers who already know your store. Start by sending a welcome email series to new subscribers, with each email offering different discounts. For example, send a 10% discount in the first email, then offer free shipping in the second one a few days later. 

For existing customers, look at what they buy and send discounts for similar items. If someone bought winter boots last year, send them early access to this year’s winter collection with a special discount. Also, don’t forget about customers who left items in their cart – send them a gentle reminder with a small discount to complete their purchase.

Case Study: Fashion Nova has mastered email marketing, generating 20% of its total sales through personalized discount codes based on customer browsing behavior. With an average open rate of 37% and a stellar spam score of -10.9, their campaigns effectively capture attention and avoid spam filters. 

By creating exclusive, customer-centric offers, they’ve turned emails into a key driver of revenue and engagement.

Social Media

Social media isn’t just for posting product pictures – it’s great for spreading the word about discounts. Share your discounts as engaging stories, not just plain announcements. Create posts showing how much customers can save with real examples: “This winter coat was $100, now $70!” 

Use your phone to record quick videos showing products with discount tags. Share customer photos of what they bought during your sales – this builds trust and shows real people enjoying your discounts.

Case Study: Gymshark transformed their Black Friday campaign into a social media event by collaborating with 1,353 influencers who shared 3,390 posts, reaching 16.5 million people. Through countdown videos, sneak peeks, and interactive polls, they built excitement and engagement. This strategy led to $3.6 million in sales during the campaign.

Referral Program

Turn your happy customers into promoters by rewarding them for sharing. Create a simple referral system where both the referrer and their friend get a discount. Make it easy to share – add clear “Share with friends” buttons to your thank you pages and order confirmation emails. 

Keep the rules simple: “Give $10, get $10” is easier to understand than complicated point systems. Send thank you emails to customers when their friends make a purchase – this encourages them to share more.

Case Study: Rothy’s referral program gave $20 to both existing customers and their referred friends. They kept their message simple and focused on sharing with friends rather than complex rewards. This straightforward approach helped double their business through word-of-mouth.

Cart Features

Make your checkout process work harder to increase sales. Show customers how close they are to earning free shipping with a simple progress bar: “Spend $20 more for free shipping!” When someone adds items to their cart, show them how much they’re saving with their discount. 

Use countdown timers wisely – place them on special sale items to create urgency without pressure. Update cart messages in real-time to show exactly how much more customers need to spend to reach discount thresholds.

Case Study: Edible Arrangements, a retailer specializing in fresh fruit bouquets, implemented a countdown timer on their website to highlight the cutoff time for same-day delivery orders. This strategic addition created a sense of urgency among customers, leading to an 8% increase in same-day sales.

7. Conclusion

I hope this post helps you understand Shopify discount features and how to create discounts on Shopify easily. Using these tools, you can offer great deals to attract more customers and increase sales whether it’s basic discounts or advanced apps like BOGOS, the right strategy can make a big difference for your store.

8. FAQs