Step-by-Step Guide: Creating Shopify Discount Codes in 2023

Content

In this article, you’ll find 

  1. The Power of Shopify Discount Codes
  2. How to Go About Creating a Robust Discount Strategy?
  3. Creating Discount Codes using Shopify’s built-in feature
  4. Creating Shopify Discount Codes via Third-party Apps like ADG
  5. A Detailed Comparison of the Shopify Built-In Functionality and ADG
  6. Promoting Your Shopify Discount Codes
  7. Conclusion
  8. Frequently Asked Questions about Shopify Discount Codes

The Power of Shopify Discount Codes

If even one person doesn’t love discounts, then this article mustn’t exist. But we’re sure this article is here to stay because customers love discounts, and when strategically planned, discounts can bring in some good fortune for businesses as well. In this article, we will talk about the power of discount codes and how to create a Shopify discount code. 

Are discounts such a big deal?

Discounts are a great way to get your customers to engage with your business, and depending on your strategy, they can turn into paying customers. Retailers can even take advantage of discounts to get their customers to buy more products. What’s better is that a thought-through, ongoing discount strategy can even promise customer loyalty. According to Statista 2023, 88 percent of survey respondents in the United States stated they had used coupons for shopping. So yes, discounts are a big deal!

Shopify discount codes usage stats in the US

How to Go About Creating a Robust Discount Strategy?

A robust discount considers the product and brand value to come up with a feasible reduction in the pricing of a product. 

  • Product – When it comes to products, you will have to look at your inventory to understand which of your products are best sellers, what is the shelf life of your products, are there products in your inventory that need to be cleared, is there a seasonal product inventory that you need to push out, etc. to decide on the products that you should be offering a discount on. 
  • Brand – On the other hand, it is also important for business owners to be aware of their perceived brand value while reducing prices. Not doing so could lead to serious devaluation. Imagine what would happen if Apple put out a 50% sale? Sure, it would be a dream come true for a few, but it would also devalue the brand in a way that would cause it to lose out on its high-paying customer base. Reasons could include a drop in perceived brand value, loss of the premium feeling attributed to Apple products, delayed buying in anticipation of the next sale, and so on. 

Considering the above, you can offer discounts that best suit you. It could be reduced price, free shipping, loyalty discount, bulk order discounts, flash sales, or last SKU discounts. 

How to Create Shopify Discount Codes?

With everything you’ve read, if you’re thinking about engaging your customers via deals and discounts in order to get more sales on your Shopify store, you’re in luck because all Shopify plans have discount codes as an enabled feature. 

Like any other discount code, Shopify discount codes are codes that customers can use to get a reduced price on their product bills. They are frequently distributed as e-vouchers, coupons, loyalty cards, or other rewards.

You can choose from various types when creating Shopify discount codes. By this, we mean you can choose from fixed value or percentage, BOGO, free shipping, set your discounts on specific products, select collections, minimum order amount, validity dates, etc. Once you have clarity on how you want to offer discounts, there are 2 ways to create your Shopify discount codes:

How to create Shopify Discount Codes

Using Shopify’s Built-In Discount Functionality

Shopify’s native discount functionality provides a range of options for creating discounts. You can create automatic discounts to offer a free product with a specific product purchased or have an automatic discount to offer an amount off. On the other hand, you can also offer free shipping. Your discounts can be applied to specific products, collections, or the entire order. You can also set up discount codes to only work over a certain order value or during a specific date range. 

Steps to create a fixed percentage, value Shopify discount code

  1. From the Shopify Dashboard, go to Discounts
  2. Click Create Discount
  3. Enter a name for the new discount code 
  4. To generate a random discount code, click Generate Code
  5. In the Types section, select the discount type you want to create. This can be a monetary or percentage value
  6. In the Applies to section, select what the discount will apply to. It can be an entire order, collections, or products
  7. Use the search field or Browse button for specific collections or products to add them to the discount
  8. In the Customer Eligibility field, select who the discount applies to. It can be everyone, specific groups, or individual customers.
  9. To limit usage, check one of the available options in the Usage Limits section.
  10. Use the calendar in the Active Dates section to set the start and end date for the discount. If you don’t choose an end date, the discount will remain active until you do.
  11. Click Save Discount, and the process is complete.

Steps to create a free shipping discount code on Shopify

  1. From the Shopify Dashboard, go to Discounts.
  2. Click Create Discount
  3. Enter a name for the new discount code 
  4. To generate a random discount code, click Generate Code
  5. In the Options section, select the Free Shipping discount type.
  6. In the Countries section, leave All Countries selected or limit the free shipping to certain countries.
  7. In the Customer Eligibility field, select who the discount applies to. It can be everyone, specific groups, or individual customers.
  8. To limit usage, check one of the available options in the Usage Limits section.
  9. Use the calendar in the Active Dates section to set the start and end date for the discount. If you don’t choose an end date, the discount will remain active until you do.
  10. Click Save Discount, and the process is complete.

Steps to create a Shopify discount code to offer a buy X, get Y discount:

  1. From the Shopify Dashboard, go to Discounts.
  2. Click Create Discount
  3. Enter a name for the new discount code 
  4. To generate a random discount code, click Generate Code
  5. Select the Buy X Get Y discount type in the Options section.
  6. Configure the following settings in the Customer Buys section:
    1. Choose the minimum quantity of items or minimum purchase amount
    2. Set the number of items or amount the customer must spend to be eligible
    3. In the Any Items From section, choose whether to include products or collections in the qualifying items.
    4. Use the search field or browse button to add products to the promotion.
  7. Configure the following settings in the Customer Gets section:
    1. Set the number of items in the cart that trigger the discount
    2. In the Any Items From section, choose whether to include products or collections as discounted items. If the product or collection is the same as the one set in the Customer Buys section, the lower-priced item will be the item discounted
    3. Use the search field or browse button to add products or collections.
  8. In the At a Discounted Value section, choose the discounted value customers receive when they buy a set number of items. If you want to offer a percentage discount, select a percentage and enter a rate. If you want to offer items for free, select Free.
  9. In the Customer Eligibility field, select who the discount applies to. It can be everyone, specific groups, or individual customers.
  10. To limit usage, check one of the available options in the Usage Limits section.
  11. Use the calendar in the Active Dates section to set the start and end date for the discount. If you don’t choose an end date, the discount will remain active until you do.
  12. Click Save Discount, and the process is complete.

While it’s simple to create a Shopify discount code using the built-in functionality, the discount codes you create on Shopify can’t be stacked, and customers can only use one discount code per order, which can limit their effectiveness. There are also a few other considerations that you need to bear in mind –

  1. A discount code can apply to up to 100 specific customers, products, and variants.
  2. There’s a limit of 20,000,000 unique discount codes for each store.
  3. To ensure that discount code names are added correctly to your store’s checkout URL, avoid using special characters in the name of the discount code.
  4. Collections can’t contain individual variants. If you add a product variant to a discounted collection, the discount applies to every product version.
  5. If you create a discount with a start and end time, the time is based on the time zone you selected in your Shopify admin. For example, if your store’s time zone is Eastern Standard Time (EST) and you select a start date of November 26, your discount starts at 12:00 a.m. EST on November 26.

These may be valid reasons for considering a third-party app to create and run your Shopify discount code and strategy, respectively.

Using Third-Party Shopify Discount Code Apps

Consider a Shopify app like Automatic Discounts & Gifts to add flexibility and robustness to your discount strategy. It allows you to set up advanced discount rules and automate them based on various conditions.

They are third-party Shopify discount code applications that can be integrated into your Shopify store and offer additional features beyond what is available natively in the Shopify platform.

Apps like ADG enable merchants to create targeted campaigns with various discounts, such as automatic discounts, bulk discounts, loyalty rewards, bundled products, and more. They also have the option to set up discount codes at checkout or automatically apply when customers add items to their cart. Also, they come with advanced features like setting up tiers of discounts based on customer spending behavior, allowing customers to earn points and redeem them at a later point, etc.  

In addition to making it a more dynamic and customized discount strategy, it can be fully automated, thus making it easier for customers without the need to manually enter your Shopify discount code.

Steps to create Shopify discount codes on a third-party app (in this case, ADG) 

  1. Log into Your Shopify Admin dashboard. This is your control panel for everything to do with your Shopify store, so it’s where you’ll create the discount codes
  2. Navigate to the Discount Code section on the left-hand side of your dashboard
  3. Click Create Discount, then Discount Code. Here, you’ll enter the code you want your customers to use. It’s good practice to have a Shopify discount code that is memorable and related to your discount
  4. Next, you’ll define what the discount code will do. Here are a few ways you can offer discounts via the Automatic Discounts & Gifts app and links to the step-by-step guides on how to go about creating a specific type of Shopify discount code:
Types of Shopify Discount Codes
  1. Once you’re happy with the settings, click Save
  2. Lastly, it’s best always to test the Shopify discount code to ensure it’s working as expected
Test Shopify Discount Codes

A Detailed Comparison of the Shopify Built-In Functionality and ADG

Flexibility – While Shopify’s built-in discount code feature provides basic discount functionality, ADG gives you more flexibility. It allows for tiered discounts, automatic application of discounts, and other advanced features that can make your discount strategy more engaging and effective.

Functionality – Shopify’s built-in discounts are straightforward and easy to use, making them a good choice for simple discount strategies. However, if you need more advanced discount functionality, such as automated discounts based on cart summaries or complex BOGO deals, ADG provides the additional features you need.

Promote your Shopify Discount Codes

Whatever method you choose, remember to promote your Shopify discount codes

Creating the code is just the first part of the process. The next and most important part is the promotions. After all, people can use discount codes only if they know one exists. The good news is that many people actively look for discount codes, too, so for such people, it’s a matter of being easily accessible. Here are a few ways to promote your Shopify discount codes for those who don’t.

  • Social media: Promoting your discount codes on social media can be highly effective. Consider creating posts or ads that highlight the discount. Carousels with unique discount codes for each card can effectively capture the attention of different target groups.
  • Email Marketing: Utilize your email subscriber list and send targeted emails for the different Shopify discount codes you create. Ensure the subject speaks about the incentive, and the body of the email has code to test for the effectiveness of the channel.
  • Collaborate with influencers: Micro-influencers can get you more traction than what your post could bring in organically. Identify influencers with relevant audiences and collaborate with them via unique codes to test the effectiveness of each collaboration. They are likely to agree because, through this collaboration, they can also provide value to their audiences.
  • Pop-ups and banners on your Shopify store: Create a prominent banner or pop-up on your website that highlights the discount code. This ensures that visitors to your site know about the ongoing promotion.

Conclusion

Discount codes can be a powerful tool when strategized right. It is important to keep your strategies balanced to avoid undermining your regular pricing. Equally important is analyzing the results of each discount code to understand what works best for your audience. Now that you know how to create them, the next step is to incorporate them into your marketing strategy and watch your e-commerce business thrive.

Frequently Asked Questions on Shopify Discount Codes

  • How many discount codes can I create in Shopify?
    Shopify allows you to create an unlimited number of unique discount codes.
  • Can I set an expiration date for my Shopify discount codes?
    You can set a specific end date when creating your discount code.
  • Can customers use multiple discount codes on a single order?
    No, Shopify’s default setup allows customers to use only one discount code per order.
  • How can I prevent my Shopify discount codes from being overused?
    You can set a usage limit for each discount code, limiting it to a specific number of uses or setting it to expire on a certain date.
  • Can I track the performance of my Shopify discount codes?
    Yes, Shopify analyzes discount codes used in your admin dashboard’s ‘Discounts’ section.

Boost your sales with ADG! Create irresistible gifts, upsells, and custom deals in minutes.

4.6 star with 200+ shopify reviews

Share this article

Don’t leave dollars on the table—ADG helps you add thousands in sales every day
4.6 star with 200+ shopify reviews
Don’t leave dollars on the table—ADG helps you add thousands in sales every day
4.6 star with 200+ shopify reviews