Discount Codes are an important part of getting customers. Knowing the types of discounts and when to use them can be the difference between an abandoned cart and a sale.
Amount off products
The amount off discount is to get customers to buy a specific product or collection. Stores can use this discount to highlight specific products or collections.
Creating an amount off code
The first step is naming the code. DO NOT generate a random code. The name needs to be memorable. Customers will not be able to remember your code if it is “Z279A0987654321”
Make the code something like, “BFCM2025”
Discount Value
Next, choose whether you want the discount as a percentage or fixed dollar amount. Use a percentage of the sale price. Or a specific dollar amount as the discount.
The discount should reflect whichever number is larger. If the discount is 10% and that is equal to $15, use the fixed number. If the discount code is $10 and that is 15%, use the percentage.
After, there is “Applies to” in this section. You will choose the specific products or collections the discount will apply to. For specific holidays, create a holiday collection. This lets customers see the exact products the discount applies to. The holiday collection is good for SEO, too.
Eligibility
The options are All Customers, Specific customer segments, and specific customers.
All customers means everyone has access to the discount code.
Specific customer segments refers to the lists of customers under the Customers tab. The default segments that everyone has are: Customers who have purchased at least once, Email subscribers, Abandoned checkouts in the last 30 days, Customers who have purchased more than once, and Customers who haven't purchased. You have the ability to make a discount code for these specific customers.
Minimum purchase requirements
This is where you can add a minimum to each purchase. The amount of money that needs to get spent to achieve the discount. Or the number of items that need to get purchased for the discount.
Maximum discount uses
Here is where you can put restrictions on the use of the code. You can limit the amount of times a discount can get used for the store. “First 100 customers get 20% off.” Or limit if a customer can use the discount code again
Combinations
Customers have the ability to combine discounts. Customers can combine a free shipping discount with an amount off discount.
In this section, Shopify Merchants can disable the ability to combine discounts.
Active dates
This section is for choosing when the discount starts and ends. The start date does not make a difference. A merchant can create the code on October 21st. But if they don’t promote the code until November 1st, no one will randomly use the code before. By having the code active from the day you create it, you avoid issues of the code not working during the promotion.
Set the end date to 3 or 4 days after the end of the official event to allow late buyers to use the code.
Buy X get Y
There is minimal difference between the different discount codes. For the Buy X, Get Y discount, the difference is the “Customer” sections.
A Shopify store would use this discount type for a giveaway. A Shopify Merchant can test demand for a new product. They could offer the new product at a discount to customers that have a high AOV. The new product would get into the hands of your most valuable customers and get reviews
Shopify stores might use Buy X, and Get Y to get rid of old products. An example is a clothing store. They might sell summer clothes with this discount to make room for their next season’s clothing. “Buy $50 worth of fall clothes, get 25% off summer clothes”
Customer Buy
You have the option to choose if the discount is by “Minimum quantity of items” or “Minimum purchase amount”
Minimum quantity of items
After choosing “Minimum Quantity,” pick the number of items you want a customer to buy to get the discount. Then, choose the items, the specific products or collections for the discount.
For “Minimum purchase amount,” pick the dollar amount required for a customer to get a discount.
Customer Gets
In the “At a discounted value” section choose if you want a discount to be based on a percentage or dollar amount.
Amount Off Order
What is the difference between amount off product and amount off order? Amount off product is a discount on specific products. Amount off order is a discount on the entire order, no matter the products.
Why do amount off order discount? Customers will buy more products if they get a discount.
The discount value section is where a merchant would choose how big a discount to offer
Free Shipping
Why offer free shipping? People will abandon their cart if they think shipping costs too much. Add the cost of shipping into your product prices and offer free shipping
Countries
A merchant can choose to restrict this discount in certain countries. Some countries may have complicated shipping. A merchant might not want to ship to those countries
Shipping rates
If you would like to exclude this discount from orders over a certain dollar amount, you can set the limit here.
Conclusion
Discounts are a big part of the holiday season. Hopefully, this information helps you sell more products during this time of year
Originally published at https://convertifyapps.com
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