How do I create discount codes and automatic discounts in Shopify?

Shopify allows you to create two types of discounts: discount codes (customers enter a code at checkout) and automatic discounts (applied automatically when conditions are met). Both options are managed from your Shopify Admin and can be customized based on products, collections, customers, and purchase requirements.

Understanding the Two Discount Methods

1. Discount Codes

Discount codes require customers to manually enter a code during checkout. These are ideal for:

• Email marketing campaigns
• Influencer or affiliate promotions
• Limited-time offers
• Targeted customer segments

2. Automatic Discounts

Automatic discounts are applied instantly when eligibility conditions are met (for example, minimum purchase amount or specific products added to cart). These are best for:

• Site-wide sales
• Collection-based promotions
• Bulk purchase incentives
• Seasonal campaigns

Important: Shopify allows a maximum of 25 active automatic discounts at one time. Automatic discounts cannot be stacked with other automatic discounts.

How to Create a Discount Code in Shopify

Follow these steps to create a discount code for amount-off products or orders:

1. Log in to your Shopify Admin.
2. Go to Discounts.
3. Click Create discount.
4. Select a discount type:
   • Amount off products
   • Amount off orders
   • Free shipping
   • Buy X get Y
5. Under Method, choose Discount code.
6. Enter a custom discount code (e.g., 15OFFNECKLACES) or click Generate code.
7. Set the Value:
   • Percentage (e.g., 15%)
   • Fixed amount (e.g., $10 off)
8. Configure optional settings:
   • Applies to: All products, specific products, or collections
   • Minimum requirements: Minimum purchase amount or quantity
   • Customer eligibility: Everyone, specific customers, or customer segments
   • Usage limits: Limit total uses or one per customer
   • Purchase type: One-time purchase, subscription, or both (if subscriptions are enabled)
9. Set Active dates (start date and optional end date).
10. Review the summary and click Save.

Your discount code is now ready to share via email, social media, banners, or paid ads.

How to Create an Automatic Discount in Shopify

Automatic discounts follow a similar process but do not require customers to enter a code.

1. Go to Shopify Admin → Discounts.
2. Click Create discount.
3. Select the discount type:
   • Amount off products
   • Amount off orders
   • Free shipping
   • Buy X get Y
4. Under Method, select Automatic discount.
5. Enter a discount title/message (customers see this in cart and checkout).
6. Set the discount value (percentage or fixed amount).
7. Configure conditions:
   • Specific products or collections (optional)
   • Minimum purchase amount or quantity
   • Subscription or one-time purchase options (if applicable)
8. Set the active start date and optional end date.
9. Click Save.

The discount will automatically apply once the customer adds eligible items to their cart.

Key Differences Between Discount Codes and Automatic Discounts

Important Notes About Shopify Discounts

• Discounts are displayed in the cart and checkout with strikethrough pricing.
• Automatic discounts do not apply to post-purchase upsell pages by default.
• To show discount badges or pricing directly on product pages, you may need custom Liquid code or a third-party app.
• You can control whether discount codes can be combined with other discounts in the discount settings.
• All major discount types (Amount off, Free shipping, Buy X Get Y) support both methods.

Pro Tips for Better Conversions

• Use automatic discounts for seasonal sales to reduce friction at checkout.
• Use discount codes for email subscribers to create exclusivity.
• Add countdown timers for limited-time discount codes.
• Test minimum purchase thresholds to increase average order value (AOV).