How to Create Shopify Discount Codes

Understanding Discounts

Shopify offers two main ways to offer discounts: discount codes that customers enter at checkout, and automatic discounts that apply when conditions are met. Each has different use cases and advantages.

Used strategically, discounts can increase average order value, drive urgency, and convert hesitant shoppers. However, overuse can train customers to wait for sales and erode your margins.

Discount Types

Shopify supports several types of discounts, each suited to different promotional goals. Understanding these helps you choose the right type for your campaign.

Creating Discount Codes

Let us walk through creating a discount code step by step. We will create a 10% off code as an example.

1. 1
   Navigate to Discounts

   In your Shopify admin, go to Discounts in the left sidebar. Click Create discount.

2. 2
   Choose Discount Type

   Select the discount type. For our example, choose Amount off productsor Amount off order depending on what you want to discount.

3. 3
   Enter the Code

   Enter your discount code. Keep it memorable and relevant. Example: SAVE10, WELCOME15, SUMMER20. Click "Generate random code" if you want a unique code.

4. 4
   Set the Discount Value

   Choose percentage or fixed amount. Enter the value (e.g., 10 for 10% or £10). Select whether it applies to all products or specific collections.

5. 5
   Set Minimum Requirements

   Choose whether a minimum purchase is required. Options: No minimum, minimum purchase amount (e.g., £50), or minimum quantity of items.

6. 6
   Configure Eligibility

   Set who can use the discount: all customers, specific customer segments, or specific customers. Use segments for VIP-only codes.

7. 7
   Set Usage Limits

   Limit total uses (e.g., first 100 customers) and uses per customer (e.g., one use per customer). Important for controlling costs.

8. 8
   Set Active Dates

   Choose start and end dates. Leave end date empty for ongoing codes, or set a deadline to create urgency.

9. 9
   Save the Discount

   Click Save discount. Your code is now active and ready to share with customers.

Automatic Discounts

Automatic discounts apply without customers entering a code. They are ideal for site-wide sales, tiered pricing, and BOGO offers where you want everyone to benefit.

Creating an Automatic Discount

1. 1.Go to Discounts and click Create discount
2. 2.Select your discount type (Amount off, Free shipping, or Buy X get Y)
3. 3.Under "Method", select Automatic discount
4. 4.Enter a title that customers will see (e.g., "Summer Sale: 20% Off")
5. 5.Configure the discount value and conditions
6. 6.Set active dates and save

Discount Strategies

Different promotional goals call for different discount approaches. Here are proven strategies for common ecommerce objectives.

Usage Limits and Conditions

Proper limits prevent discount abuse and help you control promotional costs. Always consider how customers might try to game your discounts.

Available Limits

• •Total number of uses: Limit how many times the code can be used in total (e.g., first 100 customers)
• •One use per customer: Prevents customers from using the code multiple times
• •Minimum purchase: Requires a minimum spend before discount applies
• •Minimum quantity: Requires a minimum number of items in cart
• •Customer eligibility: Restrict to specific customer segments or individuals
• •Product/collection scope: Apply only to certain products or collections

Combining Conditions

Tracking Performance

Measuring discount performance helps you understand what works and optimise future promotions.

Viewing Discount Analytics

1. 1.Go to Discounts in your Shopify admin
2. 2.Click on any discount to see its performance
3. 3.View total uses, total discount amount, and when it was used

Key Metrics to Track

Common Mistakes