Shopify how-to

How to Create Discount Codes on Shopify

Discounts are one of the easiest ways to win first orders and recover abandoned carts. Here is how to create every type of Shopify discount, and how to avoid discounting away your profit.

Part of our guide: How to set up a Shopify store

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Key takeaways

  • Create discounts in Discounts → Create discount.
  • Four types: amount off products, amount off order, buy X get Y, free shipping.
  • Set usage limits and end dates to protect margins.

The 4 Shopify discount types

TypeExampleBest for
Amount off products20% off all hoodiesClearing specific stock
Amount off order$10 off orders over $75Raising order value
Buy X get YBuy 2, get 1 freeBundles, moving inventory
Free shippingFree shipping over $50Reducing cart abandonment

How to create a discount code

  1. Go to Discounts

    Click Create discount and choose a type.

  2. Choose code or automatic

    Enter a code (e.g. WELCOME10) or select Automatic discount.

  3. Set the value and what it applies to

    Percentage or fixed amount; specific products, collections or the whole order.

  4. Add requirements

    Minimum purchase amount or quantity.

  5. Set eligibility and limits

    All customers or specific segments; total uses; one use per customer.

  6. Choose combinations and dates

    Decide what it can stack with, and set start and end dates. Then Save.

Discount ideas that protect your margin

  • Welcome offer for email sign-ups (10% is typical)
  • Abandoned cart code in your second reminder email. See abandoned cart emails.
  • Free shipping threshold set just above your average order value
  • Bundles instead of straight percentage cuts

Frequently asked questions

What is the difference between a discount code and an automatic discount?

Customers enter a discount code at checkout. An automatic discount applies itself when the cart meets the conditions, with no code needed.

Can customers use more than one discount on Shopify?

Yes, if you allow it. Each discount has combination settings that control whether it can stack with product, order or shipping discounts.

How do I limit a discount to one use per customer?

In the discount's Maximum discount uses section, tick "Limit to one use per customer".

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About the author: The BOSP Editorial Team

We build and run test stores on each platform we cover, track pricing changes, and write up what we find in plain English. No platform pays for placement in our rankings.

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