Shopify's discount feature offers two distinct methods: "automatic discounts" and "discount codes." Each has different characteristics, advantages, and disadvantages, so it's important to choose the right one depending on your purpose and use case.
In this article, we'll explain the differences between automatic discounts and discount codes in detail, and introduce how to make the most of each.
The blog article below explains Shopify's discount feature in more detail. Please use it as a reference.
What Are Automatic Discounts?
Shopify's automatic discounts are a feature that automatically applies a discount as soon as the specified conditions are met.
The advantage of automatic discounts is that customers can receive the discount without doing anything special, which prevents them from forgetting to use it.
What Are Discount Codes?
Shopify's discount codes are a feature where, once the conditions are met, the discount is applied by directly entering the code into the discount code entry field on the checkout page.
The advantage of discount codes is that you can limit the discount to only those who know the code. On the other hand, the disadvantage is that customers have to take the extra step of entering the code to apply the discount.
Differences Between Automatic Discounts and Discount Codes
Below is a table summarizing the differences between automatic discounts and discount codes.
Details of each comparison are explained later, so please use this as a reference.
| Comparison item | Automatic Discount | Discount Code |
|---|---|---|
| Timing of discount application | Discount applied automatically once conditions are met | Discount applied when a discount code is entered at checkout and conditions are met |
| How to create | Created via the discount feature | Created via the discount feature |
| Available conditions | - Country (📍) - Purchase type - Purchase amount - Purchase quantity - Customer segment - Specific customers |
- Country (📍) - Purchase type - Purchase amount - Purchase quantity - Customer segment - Specific customers |
| Usage limits | None | - Total number of uses - Number of uses per customer |
| Validity period | - Start date/time - End date/time |
- Start date/time - End date/time |
| Number that can be applied simultaneously to a single order | 25 | 5 |
| Issuance limit | Up to 25 can be active at once | Up to 20 million can be issued |
(📍) The country condition can only be used with the "free shipping" discount type.
Differences in Discount Application Timing
With automatic discounts, the discount is applied automatically once the conditions are met.
With discount codes, the discount is applied when the code is entered on the checkout page and the conditions are met.
Differences in How to Create Them
Both automatic discounts and discount codes can be created using the discount feature.
Simply select the option you want under "Method" on the discount creation screen to create it.
Differences in Available Conditions
There is no particular difference in the conditions.
With the update on August 6, 2025, automatic discounts also became able to use "customer segment" and
"specific customers" as conditions, eliminating any difference in conditions.
Differences in Usage Limits
Automatic discounts cannot have a limit set on the number of times they can be used.
Discount codes let you set a maximum number of uses and a number of uses per customer.
For example, if you only want to allow each customer to use the discount once, or want to make the discount available only to the first 100 customers, you'll need to use a discount code.
Differences in Validity Period
Both automatic discounts and discount codes let you set a validity period.
Differences in the Number That Can Be Used Simultaneously on a Single Order
Automatic discounts allow up to 25.
Discount codes allow up to 5.
Differences in Issuance Limits
Automatic discounts can have up to 25 active at once.
Discount codes have an issuance limit of up to 20 million per store.
Conclusion
Shopify's "automatic discounts" and "discount codes" are both useful discount features, each with different characteristics and uses. Automatic discounts are well suited to reducing the effort required of customers and applying discounts under simple conditions, while discount codes can be used for more detailed condition settings and campaigns targeting specific customer segments. Which feature you choose should depend on your store's operating policy and the purpose of your campaign.
Use what we've introduced in this article to offer discounts that are attractive to your customers, helping to boost sales and improve customer satisfaction. By making use of appropriate discount settings, you can achieve more effective marketing measures.
Finally, the blog article below introduces representative discount strategies you can implement on Shopify. Find the strategy that best fits your store and use it as a springboard to boost sales.
