ECOMMERCE TIPS

Shopify Automatic Discount: Expert Guidelines, Tips, & FAQs (2024)

Shopify automatic discount
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Picture this: a customer is happily browsing your store, adds items to their cart, and heads to checkout. But wait - where’s that coupon code they saw? Panic sets in, and before you know it, the sale vanishes.


For Shopify merchants, this pain point is all too familiar - watching potential sales slip away due to a less-than-smooth shopping experience. Thankfully, Shopify automatic discount can change that. It ensures discounts are applied seamlessly, without shoppers needing to lift a finger, creating a more satisfying shopping journey and boosting your store’s conversion rate. 


Moreover, manually managing discounts can be a real headache. You've probably experienced time-consuming tasks, human error, and a lack of visibility into the impact of your discounts.


To address these challenges, in this guide, we'll explore the following:

  • Understand different types of Shopify discounts and their benefits
  • Utilize Shopify's built-in features to create Shopify automatic discounts
  • Learn how to effectively combine and manage discounts
  • Optimize your Shopify automatic discount strategies for maximum impact
  • Avoid common mistakes and maximize your results

Ready to see how Shopify automatic discounts can take your store to a new height? Let’s check it out!

1. Understanding Shopify automatic discount: Types, application rules, benefits

1.1. Shopify automatic discount vs. manual discount: Which drives better results?

When it comes to implementing discount strategies, businesses have two primary options: automatic and manual discounts. 

Each approach offers distinct advantages and disadvantages, and the optimal choice depends on specific business needs and goals.

Shopify discounts

Shoppers love discounts! Don't miss this effective sales tactics to encourage more purchases.

Shopify automatic discount is applied to orders automatically based on predefined rules and conditions. This eliminates the need for manual intervention, saving time and reducing the risk of human error.


In the meantime, manual discounts require manual intervention by a store owner or staff member. They are typically applied at the point of sale or through the administrative panel.


Here are some crucial aspects to consider when comparing automatic and manual discounts:


Automatic discount

Manual discount

Application method

Automatically applied based on rules and conditions

Requires manual intervention at the time of purchase

Management complexity

Relatively low complexity, as rules can be automated

Higher complexity, as discounts need to be applied manually for each order

Tracking capabilities

Detailed tracking of discount usage, revenue generated, and customer behavior

Limited tracking capabilities, often requiring manual data entry

Targeting options

Highly targeted discounts based on customer segments, product categories, purchase history, and other factors

Less targeted, as discounts are typically applied on a case-by-case basis

Flexibility

Less flexible, as changes to discount rules require technical adjustments

More flexible, allowing for ad-hoc adjustments and personalized offers

By understanding the key differences between automatic and manual discounts, Shopify merchants can make informed decisions to optimize their discounting strategies. While automatic discounts offer efficiency and accuracy when Shopify automatically apply discount code, manual discounts provide flexibility and personalization. A hybrid approach, combining both methods, can often yield the best results.


In this article, we will delve deeper into the realm of Shopify automatic discounts. The following sections will explore common types of automatic discounts and how to effectively implement them in your Shopify store.


1.2. Seven most effective Shopify automatic discounts: application rule & strategies

Here are some common types of Shopify automatic discounts that can be implemented in your online store:

Types


Application rule

Strategy

1. Amount-off discounts

Percentage discounts

Set a specific percentage (e.g., 10%, 20%) to be deducted from the price.

Use percentage discounts to offer consistent savings across a range of products or to incentivize larger purchases.

2. Buy X get Y discounts

Quantity-based discounts

Customers receive a discount or a free product when they purchase a certain quantity of a product.

Use quantity-based discounts to encourage bulk purchases and increase average order value.

Purchase amount-based discounts

Customers receive a discount or a free product when they spend a certain amount.

Use purchase amount-based discounts to incentivize customers to spend more.

Customers receive a free product with their purchase, often as a bonus item or a gift with purchase.

Use free product promotions to attract new customers, encourage repeat purchases, or promote specific products.

3. Cart-level discounts

Order total discounts

A discount is applied to the entire order total, based on a certain threshold or percentage. For example, "Spend $100, Save 10%."

Use order total discounts to encourage larger purchases and increase average order value.

Shipping discounts

A discount is applied to the shipping cost, either as a fixed amount or a percentage.

Use shipping discounts to incentivize larger orders and improve customer satisfaction.

4. Product-specific discounts

Product discounts

A discount is applied to specific products or product categories.

Use product discounts to target specific products or categories, and to stimulate demand.

A discount is applied to a bundle of products purchased together.

Use bundle discounts to increase average order value and promote complementary products.

5. Customer segmentation discounts

Tiered discounts / volume discounts

Customers are divided into tiers based on their spending history or loyalty level, and each tier receives a specific discount.

Use tiered discounts to reward loyal customers and encourage repeat purchases.

First-time buyer discounts

Set a specific discount for first-time customers, often in the form of an automatic discount.

Use first-time buyer discounts to acquire new customers and encourage initial purchases.

Returning customer discounts

A discount is offered to returning customers to incentivize repeat purchases.

Use returning customer discounts to foster loyalty and encourage repeat business.

Geographic-specific discounts

Discounts are offered to customers in specific regions or countries.

Use geographic-specific discounts to target specific markets or to comply with local regulations.

6. Time-based discounts

Flash sales

Set a specific start and end time for the sale, and the corresponding discount.

Use flash sales to generate excitement and drive immediate sales.

Seasonal discounts

Discounts offered during specific seasons or holidays, such as Shopify Black Friday Cyber Monday, or Christmas.

Use seasonal discounts to capitalize on peak shopping seasons and increase sales.

Referral discounts

Referral program discounts

Set specific referral codes and the corresponding discounts for both the referrer and the referred customer.

Use referral programs to leverage customer advocacy and expand your customer base.

Ready to take your Shopify store to the next level? Let's explore how to set up and leverage these discount strategies to boost sales and customer satisfaction.

2. How to set up Shopify automatic discount campaigns?

Shopify's built-in discount engine provides a flexible way to create and manage various types of automatic discounts. You can create various types of automatic discounts, including amount-off products, free shipping, or buy X get Y discounts.


Now, we'll guide you through a step-by-step process on how to create each type of discount, providing practical tips and important considerations along the way.

2.1. Create the amount-off automatic discounts in Shopify

To establish an amount off Shopify automatic discount, please follow these outlined steps:

  • From your Shopify admin, go to Discounts.
  • Click Create discount.
  • From the Select discount type menu, choose either Amount off products or Amount off orders.

Shopify automatic discounts in store admins

  • Under Method, select Automatic discount.
  • In the Title section, enter a name for the automatic discount (e.g., 15offnecklaces).
  • In the Discount value section, enter the monetary or percentage value for the discount.

Create Shopify automatic discounts

  • (Optional) If you want to apply the discount to specific products or collections, select Specific products or Specific collections in the Applies to section and add your selections.
  • Set any minimum requirements for the discount, such as a minimum purchase amount or quantity of items.
  • Use the Active dates section to set the start and end dates for the discount. If you don't set an end date, the discount will not expire.

Shopify automatic discounts settings

  • Click Save discount to finalize your automatic discount setup.

2.2. Create free shipping automatic discounts

If you want to set up an automatic free shipping discount in Shopify, here’s how to do it:

  • From your Shopify admin, go to Discounts.
  • Click Create discount.
  • From the Select discount type menu, click Free shipping.

Shopify automatic free shipping discount

  • In the Method section, select Automatic discount.
  • In the Title field, enter a name for the discount. 
  • In the Countries section, you can leave All countries selected or choose Selected countries to specify where the discount applies.

Shopify automatic discounts

  • If you want to exclude free shipping for shipping rates over a certain amount, check the box for Exclude shipping rates over a certain amount and enter the amount.

conditions for Shopify automatic discounts

  • In the Minimum purchase requirements section, you can set a minimum purchase amount or minimum quantity of items required to qualify for the discount.
  • Optionally, in the Combinations section, you can allow this discount to be combined with other discount codes.
  • Use the Active dates section to set the start and end dates for the discount. If you don't set an end date, the discount will not expire.
  • Review the details in the Summary section and click Save discount to finalize your automatic free shipping discount setup.

2.3. Create BOGO & buy X get Y automatic discounts in Shopify

To create an automatic Shopify Buy X get Y discount, you can follow these steps:

  • From your Shopify admin, go to Discounts.
  • Click Create discount.
  • From the Select discount type menu, click Buy X get Y.

Shopify Buy X Get Y automatic discounts

  • Under Method, select Automatic discount.
  • In the Title section, enter a name for the automatic discount (e.g., buyonegetonefree).
  • In the Customer buys section, configure the following settings:

- Choose either Minimum quantity of items or Minimum purchase amount.
- Set the number of items that the customer must buy or the amount of money that the customer must spend to be eligible for the discount.
- In the Any items from section, choose whether you want to include products or collections as the qualifying items.

Settings for Shopify Buy X Get Y discounts

  • In the Customer gets section, configure the following settings:

- Set the quantity of items that a customer must add to their cart to get the discount.

- In the Any items from section, choose whether you want to include products or collections as discounted items.
- Select the discounted value that customers receive when they buy the set number of items (e.g., percentage off, amount off each, or free).
Shopify automatic discount conditions

  • Optionally, set a maximum number of uses per order if desired.
  • Click Save discount to finalize your automatic Buy X get Y discount setup 1.

2.4. 6 critical factors for successful Shopify automatic discount setup

When creating a Shopify automatic discount, here are some important considerations to keep in mind:

  1. POS pro subscription: Automatic discounts only apply to retail locations with a POS Pro subscription. If you have locations with a POS Lite subscription, the automatic discounts won't be available at their checkout.
  2. Collection limitations: If you apply the discount to a collection, note that collections can't hold individual product variants. The discount will apply to every version of the product if a product variant is added to a discounted collection.
  3. Minimum requirements: If the discount applies to specific products or collections, only those items will contribute to the minimum purchase or quantity amounts required for the discount.
  4. Maximum active discounts: You can have a maximum of 25 Shopify automatic discounts active on your store at one time for the same order. 
  5. Combining discounts: Customers can use a maximum of 5 product or order discount codes and 1 shipping discount code on the same order. Ensure that your discounts are set up to allow combinations if you want them to work together.
  6. Inventory for free products: If you are offering free products as part of the discount, ensure you have adequate inventory. If the inventory of free products drops to zero, customers won't be able to take advantage of the discount.

By effectively implementing these strategies, you can optimize your Shopify store's discount campaigns and boost sales.


To further enhance your discount strategy, let's explore how to manage and combine Shopify automatic discounts effectively.
  • Pro Tips:

    Moreover, when setting up your promotion strategy, also consider how your price rules will interact with:

    • Existing discounts
    • Seasonal promotions 
    • Customer-specific offers.

3. How to manage and combine automatic discounts on Shopify effectively?

To optimize your promotional strategy and discount automation, consider how different price rules work together. It means to understand how to effectively manage and combine all your Shopify automatic discounts is highly crucial. By implementing a strategic approach, you can boost sales, increase customer loyalty, and drive revenue growth. In this section, we'll delve into the strategies and best practices for optimizing your discount campaigns on Shopify.

3.1. Managing Shopify automatic discount

Shopify's built-in system enables you to manage discounts by allowing you to:
  • Edit discounts: Click on the discount you want to manage. You can edit its settings, including the discount type, value, and eligibility criteria. After making changes, click Save to apply them.
  • Deactivate discounts: You can temporarily deactivate a discount if you want to stop it from being applied. To do this, select the discount and choose the deactivate option.
  • Delete discounts: If you want to remove a discount permanently, select it and click on the delete option.
  • Filter discounts: Use the search and filter options to find specific discounts based on their status, type, or other criteria.
  • Combine discounts: You can allow customers to combine this discount with other discount codes by checking the appropriate options in the Combinations section when creating or editing a discount.

manage Shopify automatic discounts

3.2. Combining Shopify automatic discount

To maximize the effectiveness of your discount strategies, you should consider these steps:
  • Access Discounts: From your Shopify admin, go to Discounts.
  • Edit Discount Combinations: Click on the discount you want to make combinable. In the Combinations section, select the discount classes that you want the discount to be combinable with. Click Save to apply the changes.

combine Shopify automatic discounts
  • Test your combinations: To ensure that your discounts are functioning correctly, create an order, add eligible products, and enter the associated discount codes. You can also place a test order to check the customer experience.
  • Understand discount limits: You can have a maximum of 25 automatic discounts active on your store at one time. Customers can use a maximum of 5 product or order discount codes and 1 shipping discount code on the same order.
  • Types of combinations: You can combine various types of discounts, such as:

- Order discounts with free shipping discounts
- Product discounts with free shipping discounts
- Product discounts with other product discounts
- Order discounts with other order discounts (if eligible)
Managing and combining Shopify automatic discount campaigns effectively in Shopify can make a big difference in your promotional success. However, while Shopify's built-in features provide a solid foundation for managing automatic discounts, third-party apps can offer additional functionality and flexibility. Let's explore some of the top Shopify apps that can supercharge your discount strategies.

4. Top Shopify apps for automatic discounts (compared & reviewed)

Although the native Shopify automatic discount features are useful, they do come with some limitations, especially when it comes to more complex discount structures and scaling. 


For instance, Shopify only allows you to have up to 25 active automatic discounts at a time, and the ability to combine discounts is somewhat limited. Additionally, native features don’t allow for advanced conditions like targeting specific customer groups or time-limited offers beyond basic setups, which can restrict the flexibility needed for large-scale promotions.

To address these gaps and unlock more advanced discounting capabilities, here are some recommended apps that can help you create and manage more dynamic Shopify automatic discounts:

Apps

Review

Pricing

Key features

4.9/5 (1,016 reviews)

FREE - $24.99/mo

  • BOGO, Buy X Get Y, product bundles
  • Free gifts and discounts
  • Targeted discounts
  • Real-time analytics

4.9/5 (335 reviews)

FREE - $39.90/mo

  • Diverse discount types
  • Flexible pricing management
  • Advanced automation
  • Customizable discount rules

5.0/5  (1,015 reviews)

Free

  • Versatile bundling
  • Diverse discounts
  • Bulk editing & automation
  • Customizable offers

5.0/5 (2,683 reviews)

FREE - $39.99/mo

  • Various bundle types
  • Different discount types
  • Segment customers, tag products, and analyze performance

Whether you're using Shopify's built-in tools or an automatic discount app Shopify to create automatic discounts, following best practices is crucial to maximize their impact. In the next section, we'll delve into key considerations for creating and optimizing discounts effectively.

5. Shopify automatic discount strategy: Expert tips & common pitfalls to avoid

Effectively managing automatic discounts in Shopify requires thoughtful planning and awareness of potential challenges. Here are the best practices and common pitfalls to keep in mind when setting up and maintaining your automatic discounts.

5.1. Discount priority management in Shopify

  • Seasonal adjustments: Plan your Shopify automatic discounts to coincide with high-traffic shopping periods such as holidays and seasonal sales. 
  • Customer segmentation priorities: Use Shopify’s apps to target automatic discounts based on customer segments (e.g., first-time buyers or loyal customers) to tailor promotions that resonate with different audiences.
  • Override rules: Understand how Shopify handles discount stacking and prioritize which discounts should apply when Shopify multiple automatic discounts are eligible to ensure that your most strategic discounts take precedence.
Shopify discount popup

5.2. Conflict prevention

  • Seasonal adjustments: Plan your Shopify automatic discounts to coincide with high-traffic shopping periods such as holidays and seasonal sales. 
  • Customer segmentation priorities: Use Shopify’s apps to target automatic discounts based on customer segments (e.g., first-time buyers or loyal customers) to tailor promotions that resonate with different audiences.
  • Override rules: Understand how Shopify handles discount stacking and prioritize which discounts should apply when Shopify multiple automatic discounts are eligible to ensure that your most strategic discounts take precedence.

5.3. Enhancing customer engagement with automatic discounts

  • Display strategies: Let Shopify show automatic discounts on product page, in the cart, and at checkout effectively to highlight these promotions, ensuring customers are aware of the savings before they complete their purchase.
  • Mobile optimization: Many shoppers use mobile devices, so ensure that automatic discounts are seamlessly integrated and easy to spot in the mobile shopping experience. 
  • Message optimization: Communicate Shopify automatic discount campaigns effectively by using banner messages, pop-ups, or product labels that emphasize the benefits, such as “Shopify auto-apply discount code”.
  • Promotional campaigns: Create themed promotions around your automatic discounts, such as “Buy More, Save More” or “Automatic Free Shipping on Orders Over $50” to enhance customer interest.
Shopify discounts by product bundles

5.4. Leveraging customer data for targeted discounts

  • Shopping history insights: Analyze customer shopping history in Shopify to identify products that are frequently viewed or added to carts but not purchased and create Shopify automatic discounts for customer groups tailored to encourage conversion.
  • High-Interest Product Discounts: Focus Shopify automatic discounts on popular items that often get attention but don’t always lead to sales. 

5.5. Pricing strategy mistakes to avoid in Shopify

  • Over-discounting: Be cautious with the size and frequency of automatic discounts. Excessively high discounts can hurt profit margins and set unrealistic customer expectations, leading to decreased full-price sales. 
  • Relying too heavily on discounts: Avoid conditioning customers to wait for discounts by running promotions too frequently. Use automatic discounts as part of a balanced pricing strategy to maintain revenue and customer trust.

5.6. Integrating Shopify automatic discount with loyalty programs

  • Retention and loyalty: Combine automatic discounts with loyalty programs to offer exclusive Shopify automatic discounts for specific customers like loyalty program members, creating an incentive to join and stay engaged.
  • Enhanced value: Utilize automatic discounts to reward points redemption, providing a seamless experience where members automatically receive discounts during their purchases.
Shopify discounts with loyalty program

5.7. Measuring the effectiveness of automatic discounts

  • Tracking performance in Shopify: To measure how automatic discounts impact your store, use Shopify’s analytics and reports to track key metrics (conversion rates, average order value, and total sales generated from specific discount campaigns, etc.)
  • Evaluating discount types: Assess which Shopify automatic discount types—such as percentage off, fixed amount, or free shipping—yield the best results for your store.
  • Continuous Optimization: Adjust discount values, eligibility criteria, and timing to optimize your campaigns and drive revenue growth.
By following these best practices and avoiding common pitfalls, you can effectively manage Shopify automatic discounts to boost your store’s performance while enhancing the shopping experience for your customers.

6. Troubleshooting and FAQs for Shopify automatic discount

Managing automatic discounts on Shopify can sometimes present challenges, whether it's technical issues or customer inquiries. Here, we address common problems and answer frequently asked questions to help you effectively manage and troubleshoot your discount setup.

6.1. Common issues

Below, we address some of the most frequent issues store owners face when working with Shopify automatic discount campaigns. Understanding these common problems and how to resolve them will ensure a smooth shopping experience for your customers.
  • Technical problems
If automatic discounts aren’t applied correctly or appear inconsistent during checkout, it could be due to conflicts with other active promotions or incorrectly configured discount conditions. Always double-check the discount settings for overlap or missing criteria. Additionally, ensure your Shopify automatic discount campaigns are valid and haven't expired.
  • Customer complaints
Customers may express confusion about how discounts are applied, especially when multiple automatic discounts Shopify are involved. Clear communication is key - use banners, pop-ups, or messages to notify customers when discounts are applied, and ensure the checkout page clearly displays the discount details.
Shopify automatic discounts in cart page
  • Discounts not combining as expected
Shopify's native automatic discounts can sometimes conflict with each other, especially when combined with manual discount codes. Make sure that your settings allow discount stacking, and review the combination rules to ensure compatibility between promotions.

By addressing these common technical issues and understanding how to troubleshoot them, you can provide a smoother, more reliable discount experience for your customers. The next section will answer some frequently asked questions (FAQs) about Shopify automatic discounts, offering more in-depth guidance and clarifications to help you manage your discount strategy effectively.

6.2. FAQs

1. How many automatic discounts can you have on Shopify?

You can have a maximum of 25 automatic discounts active on your Shopify store at one time. This means that a maximum of 25 automatic discount codes can be applied to the same order. Additionally, customers can use a maximum of 5 product or order discount codes and 1 shipping discount code on the same order.

2. How do I override my automatic discount on Shopify?

To override a Shopify automatic discount, you can create a discount code that customers can apply at checkout. Here’s how to do it:

  • From your Shopify admin, go to Discounts.
  • Click Create discount.
  • Select the type of discount you want to create (e.g., Amount off products, Amount off orders, or Buy X get Y).
  • Under Method, select Discount code instead of Automatic discount.
  • Set the details for your discount code, including the discount value and any applicable conditions.
  • Click Save discount.

By using a discount code, customers can apply it at checkout, which will take precedence over any automatic discounts that may be active.

3. How do I add a discount timer on Shopify?

To add a discount timer on Shopify, you can set active dates for your discount codes. Here’s how:

  • From your Shopify admin, go to Discounts.
  • Click Create discount or select an existing discount to edit.
  • In the Active dates section, set the Start date and Start time for the discount.
  • If you want to set an end date, check the Set end date option and choose the date from the calendar.
  • If you want the discount to be valid for only one day, select the same calendar day for both the start and end dates.
  • Click Save discount to apply your changes.

This way, customers will see the discount timer based on the active dates you set.

4. How to add a discount pop-up on Shopify?

To add a discount pop-up on Shopify, you can use a third-party app from the Shopify App Store that specializes in creating pop-ups. You can go to Shopify App Store and look for apps that offer pop-up features, such as discount pop-ups or promotional pop-ups. 


*Check this comprehensive guide on Shopify discount pop-ups for more details!

5. How do I remove auto discount from Shopify?

To remove a Shopify automatic discount, follow these steps:

  • From your Shopify admin, go to Discounts.
  • Locate the automatic discount you want to remove.
  • Click on the discount to open its details.
  • Click Delete discount to remove it.
  • Confirm the deletion when prompted.

This will permanently remove the automatic discount from your store.

7. Maximizing your Shopify automatic discount ROI: Action plan & next steps

By effectively implementing Shopify automatic discount campaigns, you can significantly enhance your Shopify store's sales and customer experience. Remember to:

  • Master Shopify's tools: Utilize Shopify's built-in features to create and manage Shopify automatic discounts efficiently.
  • Test and optimize: Experiment with different discount strategies to find the most effective approach.
  • Track and analyze: Monitor the performance of your automatic discounts to measure their impact on sales and customer behavior.
  • Combine discounts strategically: Combine different discount types to create powerful promotions.
  • Leverage Shopify apps: Utilize third-party apps to extend the capabilities of Shopify's built-in automatic discount features.

By following these best practices and staying updated on the latest trends in e-commerce, you can optimize your Shopify automatic discount strategy and drive sustainable growth for your Shopify store.


Ready to supercharge your Shopify store's sales? Dive into the world of automatic discounts and unleash the power of apps like Qikify's Discount Buy X Get Y BOGO Gift. Start your journey today!

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  • ABOUT THE AUTHOR

  • Hannah

    eCommerce Specialist

    With over 5 years of experience under her belt, Hannah is an eCommerce writer who crafts content specifically for a website that deals with online sales. She simplifies technical details to assist entrepreneurs in utilizing the platform and launching their online ventures.