What types of discounts can I create in Shopify?

Shopify offers four discount types: percentage discounts (e.g., 20% off), fixed amount discounts (e.g., $10 off), Buy X Get Y (BOGO) deals, and free shipping. Each can be applied as a discount code or automatic discount.

Can I limit how many times a Shopify discount is used?

Yes. You can set limits on total uses, uses per customer, and date ranges. You can also restrict discounts to specific products, collections, or customer groups.

How do I create a Buy One Get One Free discount?

Go to Discounts in Shopify admin, click Create discount, select 'Buy X Get Y'. Set the purchase requirement (Buy X), then set what customers get (Get Y) and the discount amount (free or percentage off).

Shopify Discounts: Types and How to Create Them

Q: What's the difference between discount codes and automatic discounts?

Discount codes require customers to enter a code at checkout. Automatic discounts apply automatically when conditions are met—no code needed. Automatic discounts have higher redemption rates but less tracking flexibility.

Shopify discounts are promotional tools that reduce prices for customers based on conditions you set. Used strategically, discounts can increase average order value, clear inventory, acquire new customers, and reward loyalty. This guide covers the different discount types and how to create them effectively.

Types of Shopify Discounts

Percentage Discounts

Take a percentage off the purchase price. Common examples:

20% off entire order
15% off specific collection
10% off for first-time customers

Fixed Amount Discounts

Subtract a specific dollar amount from the purchase:

$10 off orders over $50
$25 off specific products
$5 off for newsletter subscribers

Buy X Get Y (BOGO)

Customers buy certain items and receive others free or discounted:

Buy 2, Get 1 Free
Buy 1, Get 1 50% Off
Buy any 3 items, Get cheapest free

Free Shipping

Remove shipping costs based on conditions:

Free shipping on all orders
Free shipping on orders over $75
Free shipping to specific regions

Discount Codes vs. Automatic Discounts

Discount Codes

Customers enter a code at checkout to apply the discount.

Pros: Trackable, shareable, creates exclusivity
Cons: Some customers forget or can't find codes
Best for: Email campaigns, influencer partnerships, loyalty rewards

Automatic Discounts

Applied automatically when conditions are met—no code needed.

Pros: Higher redemption rates, no extra steps for customers
Cons: Less tracking granularity, harder to attribute to campaigns
Best for: Site-wide sales, threshold-based promotions

Creating Discounts: Step-by-Step

Creating a Percentage Discount

Go to Discounts in your Shopify admin
Click Create discount
Select Discount code or Automatic discount
Choose Percentage as the discount type
Enter the discount value (e.g., 20)
Set which items it applies to (all products, specific collections, or specific products)
Add conditions (minimum purchase, customer eligibility)
Set active dates
Save the discount

Creating a Buy X Get Y Discount

Go to Discounts and click Create discount
Select Buy X Get Y
Set the "Customer buys" requirement (quantity and products)
Set the "Customer gets" reward (quantity, products, and discount)
Choose whether customers can use this multiple times per order
Set active dates and save

Creating a Free Shipping Discount

Go to Discounts and click Create discount
Select Free shipping
Set minimum purchase requirements (optional)
Choose which countries it applies to
Exclude shipping rates over a certain amount (optional)
Set active dates and save

Discount Strategy Best Practices

Set Clear Objectives

Define what you want to achieve:

Acquire customers: First-purchase discounts
Increase AOV: Threshold-based discounts ($10 off $75+)
Clear inventory: Deep discounts on specific products
Reward loyalty: VIP-only discount codes

Protect Your Margins

Calculate the impact on profit before running discounts
Set minimum purchase requirements to maintain order value
Limit discount usage per customer
Exclude already-discounted items if needed

Create Urgency

Use limited-time offers with clear end dates
Limit total uses for exclusive promotions
Communicate scarcity in marketing messages

Combining Discounts with Collections

Discounts work well with Shopify collections:

Apply discounts to specific collections (e.g., "Summer Sale" collection)
Create a "Sale" collection with automated rules to show discounted items
Use tags to manage which products are eligible for promotions

Organize Sale Collections Automatically: AWSM Collections can automatically group discounted products into sale collections, keeping your promotions organized without manual work.

Tracking Discount Performance

Monitor discount effectiveness in Shopify Analytics:

Sales by discount: See revenue attributed to each discount
Usage count: How many times a discount was used
Average order value: Compare discounted vs. non-discounted orders
Conversion rate: Track if discounts improve checkout completion

Common Discount Mistakes

Too many discounts: Trains customers to wait for sales
No minimum requirements: Can hurt average order value
Unclear terms: Creates customer confusion and support tickets
Not tracking results: Can't optimize what you don't measure
Forgetting expiration: Old discounts can be shared and abused

Conclusion

Shopify discounts are powerful tools when used strategically. Choose the right discount type for your objective, set appropriate limits to protect margins, and track performance to optimize future promotions. Remember: the goal isn't just to discount—it's to drive profitable customer behavior.