Shopify Discount Codes: How to Create Promotions That Drive Sales

Discounts drive sales. Every type explained. Step by step.

Discount Types

• Percentage: 10% off, 25% off
• Fixed amount: $10 off, $50 off
• Free shipping: Remove shipping cost
• Buy X get Y: Buy 2 get 1 free

Codes vs Automatic

Codes

Customer enters code. Track by campaign. Feels exclusive.

Automatic

Applied automatically. No code needed. Best for site-wide sales.

Create Percentage Discount

1. Discounts > Create discount
2. Select Discount code
3. Choose Percentage
4. Enter code (SAVE20)
5. Set percentage
6. Choose products or collections

Requirements

• No minimum
• Minimum spend ($50)
• Minimum quantity (3 items)

Limits

• Total uses
• One per customer
• Active dates

Create Fixed Amount

1. Discounts > Create discount
2. Choose Fixed amount
3. Enter code and dollar amount
4. Set requirements and limits

Create Free Shipping

1. Discounts > Create discount
2. Choose Free shipping
3. Enter code
4. Select countries
5. Set requirements

Shipping costs kill conversions. Free shipping recovers them.

Create Buy X Get Y

1. Discounts > Create discount
2. Choose Buy X get Y
3. Set buy condition
4. Set reward (free, % off, $ off)

Examples

• Buy 2 get 1 free
• Buy shirt, get socks 50% off
• Spend $100, get free gift

Best Practices

Naming

• Simple: SAVE20, FREESHIP, WELCOME10
• Trackable: INSTA20, EMAIL15
• No confusing characters (0 vs O)

Strategy

• Welcome: 10-15% for signups
• Abandoned cart: 10% or free shipping
• Loyalty: Exclusive for repeat buyers
• Seasonal: Holiday promotions
• Influencer: Unique codes per person

Protect Margins

• Set minimums
• Exclude low-margin items
• Limit total uses
• Test small first

Managing Discounts

• View active and scheduled
• Check usage stats
• Deactivate early
• Duplicate winners

Combining Discounts

• Product + shipping: Can stack
• Multiple codes: One per order

Troubleshooting

Code Invalid

• Check spelling
• Check dates
• Check minimums
• Check usage limits

Not Applying

• Products not eligible
• Conflicting discounts
• Wrong location

The Bottom Line

Percentage for sales. Fixed for promos. Free shipping for carts. Track and protect margins.

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