In the competitive world of online shopping, pricing can be the deciding factor between a visitor leaving your store with nothing and becoming 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 pricing offers on your digital store to increase conversions and improve customer loyalty.
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 annual and automatic discounts in your store
- 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.
14 Types of Discounts You Can Offer on your Shopify store
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 promotion types. Simply subtract a fixed percentage off 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.
1. Percentage Discount
A percentage discount is one of the most common and straightforward promotion types. Simply subtract a fixed percentage off 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.
1. Percentage Discount
A percentage discount is one of the most common and straightforward promotion types. Simply subtract a fixed percentage off 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.
How to set up automatic discounts
Automatic discounts let you apply price rules without needing codes. They are great for sitewide offers, holiday promos, and cart-threshold incentives. Start by defining the trigger (cart value, item quantity, customer tag) then choose the reward (percentage, fixed amount, buy X get Y).
Recommended setups
- Cart value tiers: 10% off above $100, 15% off above $200.
- BOGO for low-cost accessories to boost AOV.
- Free gift with purchase during peak sales weeks.
Always pair auto-discounts with clear messaging in the cart, mini-cart, and announcement bar so shoppers understand how to qualify.
Advanced discount playbook
Layer discounts with audience segmentation to avoid over-discounting. Use unique codes for influencers, loyalty tiers, and remarketing emails. For paid ads, generate single-use codes to track creative and channel performance separately.
Combine discounts with apps
- Bundle builders: increase cart size while protecting margin.
- Subscription incentives: first-month percent off, then full price thereafter.
- Geo-specific offers: align price sensitivity with region or currency.
Common mistakes to avoid
1. Overlapping rules
Stacked discounts can erode margin fast. Audit your rules to ensure exclusions and priority ordering are set. Keep employee/test codes separate from live promos.
2. Poor onsite visibility
If customers cannot see how to qualify, the discount will not convert. Use banners, cart messages, and checkout hints. Show progress bars for thresholds to nudge higher AOV.
3. No guardrails
Cap redemptions or set end dates to prevent runaway promos. Validate discount testing in a staging environment before going live.
Measuring success & iteration
Track lift in conversion rate, average order value, and payback period. Split-test discount depth to find the minimal viable incentive. Tie codes to campaigns so you know which creative and channels drive profitable redemptions.
Combine platform analytics with server-side tracking to capture full-funnel performance and avoid data loss from browser restrictions.
Conclusions
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.