Boost Sales with Discount Codes on Your Shopify Store

Boost Sales with Discount Codes on Your Shopify Store

Table of Contents

  1. Introduction
  2. Why use discount codes on Shopify
  3. Types of discount codes on Shopify 3.1. Amount of product discount 3.2. Amount of order discount 3.3. XY Gateway discount 3.4. Free shipping discount
  4. How to create discount codes on Shopify 4.1. Choosing the method for the discount 4.2. Customizing the discount code 4.3. Setting the discount value and conditions 4.4. Customizing customer eligibility 4.5. Setting maximum discount usage 4.6. Combining discounts 4.7. Setting active dates
  5. Conclusion


How to Set Up and Create Discounts on Your Shopify Store

Discounts are a powerful tool for driving sales and boosting customer engagement on your Shopify store. By offering discounts, you can entice customers to make a purchase, increase your conversion rates, and even capitalize on special events or holidays. In this step-by-step tutorial, we will explore the various types of discount codes available on Shopify, when and how to use each one, and guide you through the process of setting up and using these discounts effectively.


Welcome to this tutorial on how to set up and create discounts on your Shopify store. Whether you're a new Shopify store owner or looking to optimize your existing discounts strategy, this guide will provide you with valuable insights and practical tips to maximize the impact of your discounts.

Why use discount codes on Shopify

Discount codes offer several benefits for your Shopify store:

  1. Increased sales: Discounts can persuade hesitant customers to make a purchase, especially if they have the added motivation of saving money.

  2. Higher conversion rates: By leveraging discounts effectively, you can improve your conversion rates and turn visitors into loyal customers.

  3. Capitalize on special events: Events like Black Friday or seasonal holidays provide great opportunities to create specific discount codes and promote them to the right audience, boosting sales and customer engagement.

Types of discount codes on Shopify

Shopify offers different types of discount codes to suit various marketing strategies and objectives. Here are the four main types of discount codes:

1. Amount of product discount

This type of discount code applies a discount to a particular product or group of products. You can choose between a fixed price reduction or a percentage discount. This is ideal for offering targeted discounts on specific items to drive sales and increase product visibility.

2. Amount of order discount

With an amount of order discount code, the discount is applied to the entire order, regardless of the number of items. You can specify a fixed amount or a percentage reduction. This type of discount is useful for incentivizing customers to spend more by offering them a specific dollar amount or percentage deduction from their total order value.

3. XY Gateway discount

The XY Gateway discount allows you to offer bundled discounts or buy-one-get-one deals. Customers can purchase a combination of products and receive a discount on one or both items. This is an effective strategy for promoting related products and encouraging customers to buy more.

4. Free shipping discount

A free shipping discount eliminates shipping costs for customers who make a qualifying purchase. This can be a powerful incentive, as many customers are motivated by free shipping when making buying decisions. Incorporating this discount type into your marketing strategy can result in increased conversion rates and customer satisfaction.

How to create discount codes on Shopify

Now that we have explored the different types of discount codes, let's dive into the process of creating the codes and setting them up correctly on your Shopify store.

1. Choosing the method for the discount

When creating a discount code, you have two options: automatic discounts or discount codes. Automatic discounts do not require customers to enter a code at checkout, making them ideal for influencer marketing campaigns or specific customer segments. Discount codes, on the other hand, require customers to enter a code during the checkout process, which is suitable for self-promotion or targeted ad campaigns.

2. Customizing the discount code

Start by deciding on a name for your discount code. You can use your Shopify store's name, brand name, or create a customized name. Keeping it branded helps establish a cohesive image for your store. You can also generate a random discount code, although it is recommended to keep it branded for better recognition and consistency.

3. Setting the discount value and conditions

Choose whether the discount should be a fixed amount or a percentage reduction. Percentage discounts are generally preferred as they allow for flexibility across different order values. Specify the minimum purchase requirement and the minimum quantity of items for the discount code to be valid. It's crucial to strike a balance between enticing customers to spend more and protecting your profit margins.

4. Customizing customer eligibility

You can apply the discount code to all customers or specific customer segments. Shopify offers segments like abandoned checkouts, email subscribers, or customers who have made multiple purchases. It's important to reward loyal customers while also considering new subscribers to your email newsletter.

5. Setting maximum discount usage

Consider setting a limit on the total number of times the discount code can be used across all customers. This prevents potential abuse and protects your business from incurring significant losses. Additionally, you can choose to limit the discount code to one use per customer, which ensures fairness and prevents customers from taking advantage of the code multiple times.

6. Combining discounts

If you offer other types of discounts, such as free shipping, you can choose to combine them with the discount code. This allows customers to benefit from multiple discounts simultaneously, increasing their incentive to make a purchase.

7. Setting active dates

Specify the start and end dates for your discount code. This helps create a sense of urgency and ensures that the discount is only available for a limited period. Setting an expiry date also encourages customers to take action and make a purchase before the offer expires.


Discount codes are a valuable tool for boosting sales and customer engagement on your Shopify store. By utilizing the different types of discount codes and customizing them to fit your marketing strategies, you can effectively drive conversions and improve overall customer satisfaction. Start creating compelling discount codes today and watch your sales soar.


  • Increased sales and conversion rates
  • Promotes customer loyalty and engagement
  • Capitalizes on special events and holidays
  • Improves product visibility and customer satisfaction
  • Allows for targeted marketing strategies


  • Potential revenue loss if discounts are not carefully planned and executed
  • Overuse of discounts may devalue your products or brand

By carefully considering your goals, target audience, and overall marketing strategy, you can leverage the power of discount codes on Shopify to boost your store's success.


  • Learn how to set up and create discounts on your Shopify store
  • Explore the different types of discount codes available on Shopify
  • Understand when and how to use each type of discount code effectively
  • Step-by-step tutorial on creating discount codes
  • Tips for customizing discount codes and setting up customer eligibility
  • Strategies for maximizing the impact of your discount codes
  • Pros and cons of using discount codes on Shopify


Q: Can I use discount codes for specific products? A: Yes, Shopify allows you to create discount codes that apply to specific products or groups of products. You can offer fixed price or percentage discounts on these items.

Q: How can discount codes help me increase sales? A: Discount codes can persuade hesitant customers to make a purchase by offering them a special deal or saving them money. They can also attract new customers and incentivize repeat purchases.

Q: Can I combine multiple discount codes? A: It depends on the settings you choose. Shopify allows you to combine certain types of discounts, such as product discounts and free shipping discounts. This can provide additional incentives for customers to make a purchase.

Q: How long should I make my discount codes valid for? A: The validity period of your discount codes depends on your marketing strategy and the urgency you want to create. Setting an expiry date can encourage customers to make a purchase sooner rather than later.

Q: Are there any downsides to using discount codes? A: While discount codes can be effective in driving sales, they should be used strategically. Overuse of discounts can devalue your products or brand and potentially lead to revenue loss if not carefully planned and executed.

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