Shopify: How-To Create Discount Codes

So you’ve created a Shopify Store and want to start running discounts, but don’t know how to get started. Fear not! This article will explain everything you’ll want to know about creating, managing and running discounts on your new store.

To start, you should know that discount codes are available as standard in Shopify, but you can get additional features like one-click bulk discounts, sales badges, and automated discounts from our app, the Bulk Discount Manager, you can try it for free and explore all features here.

Here are all the steps you’ll need to take to create your first discount:


The easiest way to create and schedule discounts on Shopify

Looking for a better way to create and schedule discounts in shopify?
Try the Bulk Discount Manager by amai


Creating Discount Codes

Step 1) Access your Shopify Dashboard and ‘Create a Discount’

The first step is to open the ‘Discount’s dashboard, this can be accessed via the sidebar menu in your Shopify Dashboard. Once on the Discounts page, click the ‘Create Discount’ button on the top right of the page.

Step 2) Select ‘Discount Code’

By default, Shopify gives you the option to create either a ‘Discount Code’ or ‘Automatic Discount‘. While both options have the exact same discount options, each are best used in specific scenarios.

Discount codes:
These are codes or coupons manually entered by customers at checkout, and are best used if you only want to provide discounts for specific customers or sales.

Automatic Discounts:
These discounts will be automatically applied at checkout when sale items are in the cart.

Step 3) Create your Discount Code

Next you’ll create your discount code, this is the text that customers will use when adding the coupon at checkout. Be sure this exactly matches any marketing collateral you’ve created for the discount to avoid any poor customer experiences.

Generally, the shorter the code the better. For example, if you’re running a 50% off – Cyber Monday sale try using a code like “CYBER50″ instead of the entire name “CYBERMONDAY50%”.

While both option’s work, a shorter code looks better in advertising and is easier for the customer to remember. Shopify also has a ‘Generate Code’ button if you’re just looking for any random text to act as the coupon.

Step 4) Configure your Discount

In either discount options (code or automatic), you’ll also need to setup your Discount: Type, Value, Requirements, Eligibility, Limits, and Active dates. This is the final step in creating your discount and is where you’ll set whether your discounts will apply to individual products, specific variants, or store-wide.

While this may be a little overwhelming for new users, each option is quite straight forward. When you’re ready, also be sure to read the summary card and make sure each bullet-point exactly matches your intentions for the discount code.


Different Types of Discounts

1. Percentage
Simple and effective, percentage discounts are best utilized for store-wide or catalogue sales.

2. Fixed Amount
Depending on your average product value, fixed amount discounts can be best used as coupons. For example, you can offer $5 off a customers next purchase for signing up to your email list.
Tip: If you run a multi-currency store, Shopify will automatically convert the $ discount to the customers currency

3. Free Shipping
A great incentive for any store with physical products, free shipping is almost a norm in today’s climate. When offering free shipping, be sure to know the exact rates you’ll be paying to cover the costs or, if you’re running a drop-shipping store try get products that come with free shipping as standard.

4. Buy X Get Y
This type of discount is a great way to increase your average order value. For example if a customer buys a T-Shirt, you can offer them $10 off their next purchase. You should consider your profit margins per sale when setting up a Buy X Get Y sale and provide a good balance between your profit from the sale and the customers discount value.


Managing your Discounts

Once your Discount Code has been created you can manage them via the Discounts Dashboard. Here you’ll also be able to track how many times the coupon was used, and make any changes to the discount.

Unfortunately, Shopify’s default discount creator does have some limitations. Don’t expect to be able to price round your discounts or apply tags to your sale products for example, if a customer types Cyber Monday Sales in to your search bar they won’t see the specific products that are on sale. If you need this functionality and more from your discounts try the Bulk Discount Manager, it’s free to use.


Shopify Expert at amai Digital 

Josh has been working in the eCommerce field for 3+ years, assisting clients in creating and growing online stores on both Shopify and WordPress.

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