One of the measures essential to growing sales on an e-commerce site is making use of coupons and discounts. If you run a Shopify store, you've probably thought about wanting to use coupons more effectively, acquire new customers, or raise your repeat purchase rate.
Shopify comes with a powerful discount feature built in as standard, letting you easily run a variety of measures such as product discounts, order discounts, free shipping, and Buy X Get Y. That said, you probably have a lot of questions when setting it up, such as "which type should I choose?", "what's the difference between a coupon code and an automatic discount?", and "what are the restrictions on combining discounts?"
In this article, we give a practical explanation covering everything from the big picture of Shopify's discount feature, to the 5 steps for issuing a coupon code, how to choose between the 4 types, the benefits of using them, and things to watch out for in practice. We also introduce the reporting feature you can use to measure results, along with recommended apps, so you can put this to use in your store right away.
What is Shopify's discount feature?
Shopify's discount feature lets you apply a discount, such as off a product price, off the order total, or free shipping, to an order that meets specific conditions. You can choose to apply the discount either by having the customer enter a coupon code directly, or via an automatic discount.
By using the discount feature, you can boost your store's sales through new customer acquisition, a higher average order value, and more repeat purchases.
Types of discounts you can issue on Shopify
There are 4 types of discounts:
- A flat discount on a product (product discount)
- A flat discount on an order (order discount)
- Free shipping (shipping discount)
- Buy X Get Y (product discount)
Let's go over each in detail.
A flat discount on a product (product discount)
A discount coupon that's applied by entering a coupon code when purchasing a specific product or a specific collection.
You can choose whether the discount amount is a flat amount or a percentage.
For example, you can use this for cases like:
- You want to take 10% or ¥100 off product X
- You want to take 10% or ¥100 off every product in collection Y
- You want to take 10% or ¥100 off the first time a customer buys product X
- And so on
The article below introduces how to use a flat product discount to run a volume discount on a specific product. Please use it as a reference.
A flat discount on an order (order discount)
A discount coupon that can be used by entering a coupon code when a specific condition is met at the time of ordering.
The only difference from a product discount coupon is that you can't select a specific product or collection. Otherwise it's nearly identical to a product discount coupon.
For example, you can use this for cases like:
- You want to take 10% or ¥100 off every order, regardless of product
- 10% or ¥100 off only on a customer's first order
- You want to take 10% or ¥100 off when 2 or more items are purchased
- You want to take 10% or ¥100 off when ¥5,000 or more is purchased
- And so on
The article below introduces how to use a flat order discount to issue a birthday coupon or an employee discount coupon. Please use it as a reference.
Free shipping (shipping discount)
A discount coupon that waives the shipping fee on an order by entering a coupon code when a specific condition is met at the time of ordering.
For example, you can use this for cases like:
- You want free shipping only on a customer's first order
- You want free shipping only for a specific period
- You want free shipping only when a certain amount is purchased
- You want free shipping only to specific countries
- And so on
The article below explains how to set up "automatic free shipping when 3 or more items are purchased" using free shipping, and how to issue "a coupon code that gives newly registered members free shipping on their first order only." Please use it as a reference.
Buy X Get Y (product discount)
A coupon that lets a customer get specific product Y, or a product Y within a specific collection, at a discounted price or for free, when they enter a coupon code while purchasing specific product X, or a product X within a specific collection.
For example, you can use this for cases like:
- You want to give away related product Y as a gift when X is purchased
- You want to give away Y as a gift when X is purchased during a specific period
- You want to give away Y when 3 or more of X are purchased
- You want to discount Y when 3 or more of X are purchased
- And so on
The article below introduces how to use "Buy X Get Y" to offer a free gift on purchase of a specific product, and how to run BOGO (Buy One Get One). Please use it as a reference.
Benefits of using Shopify's discount feature
Expect to acquire new customers
By issuing a coupon usable from a customer's very first purchase — such as a ○% off first-order coupon or free shipping — you can encourage customers who have never purchased before to make a purchase.
Expect more repeat purchases
By distributing a "thank you" coupon usable next time, or a coupon usable after a customer's Nth purchase, you can encourage existing customers to make repeat purchases.
Expect a higher average order value
By attaching conditions to a coupon — such as "X% off when you buy ○ or more" or "¥◇ off when you spend ¥△ or more" — you can encourage customers to add more to their order to meet that condition, raising the average order value.
Reduce inventory of specific products
By issuing a coupon tied to the purchase of a specific product — such as "○% off product X" or "get product Y free when you buy product X" — you can also reduce inventory of specific products.
Generate excitement around your store
By using coupons, you can hold the kind of regular events that e-commerce malls like Rakuten Ichiba and Yahoo! Shopping often run, generating excitement around your store itself.
For example, you can hold regular coupon events by issuing "a 5% off coupon usable only on days containing the number 5 each month," or "a free-shipping coupon usable only on Sundays."
Helps prevent cart abandonment
By using a cart-abandonment-prevention app to automatically issue a limited-time flash-sale coupon at the moment a customer tries to leave the cart page, you can give the customer a reason to buy now, helping prevent cart abandonment.
The article below introduces measures you can take on Shopify to prevent cart abandonment, so please use it as a reference.
Measure the effectiveness of your discount strategy with the reporting feature
A major benefit of using Shopify's discount feature is that you can measure the effectiveness of your discount strategy in detail. Shopify comes with a reporting feature for analyzing sales and customer behavior, letting you check the performance of your discount strategy with concrete data.
By going to "Analytics > Reports > Sales by discount," you can check the effectiveness of your discount strategy.
How to issue a coupon code on Shopify
This section introduces the simple steps to issue a coupon code using Shopify's discount feature.
Here's how to issue a coupon on Shopify:
- Step 1: In the admin, click "Create discount"
- Step 2: Choose the discount type
- Step 3: Decide on the coupon code
- Step 4: Set the discount amount
- Step 5: Configure conditions and other details
Let's go over each in detail.
Step 1: In the admin, click "Create discount"
Go to the discounts page in the Shopify admin and click "Create discount."
Step 2: Choose the discount type
Choose the one that suits you from the 4 discount types.
- A flat discount on a product (product discount)
- A flat discount on an order (order discount)
- Free shipping (shipping discount)
- Buy X Get Y (product discount)
Each is explained in detail in the previous section, so please refer back to it.
Step 3: Decide on the coupon code
Next, decide on the coupon code.
You can set your own custom code, or click "Generate random code" to have one generated automatically.
If you set your own custom coupon code, be mindful to use a long, complex code that customers can't easily guess.
Step 4: Set the discount amount
For a "product discount" or "order discount," you can set the discount amount as either a flat amount or a percentage.
A "free shipping coupon" is limited to free shipping only.
A "Buy X Get Y coupon" requires you to set product Y, and whether product Y is given away free or discounted, along with the discount or discount rate.
Step 5: Configure conditions and other details
Set the necessary conditions from the items below. Note that the conditions you can set differ depending on the discount type.
Purchase type
You can choose from the following 3 options:
- One-time purchase (usable on regular orders)
- Subscription (usable on subscription orders)
- Both (usable on both regular and subscription orders)
Minimum purchase requirements
The minimum purchase requirement is the condition that must be met for the coupon to be usable.
There are 3 minimum purchase requirements you can set:
- No minimum requirement (always usable)
- Minimum purchase amount (usable once ¥○○ or more is purchased)
- Minimum quantity of items (usable once X or more items are purchased)
Eligibility
Customer eligibility is set when you want to limit who can use the coupon to specific customers.
You can set the following:
- All customers (anyone can use it)
- Specific customer segments (only customers belonging to a specific customer segment can use it)
- Specific customers (only the specific customers selected here can use it)
※ Customer segments can be created from the customer management screen.
Maximum discount uses
"Maximum discount uses" is an item for limiting how many times a coupon can be used.
You can set the following:
- Limit the total number of times this discount can be used
- Limit to one use per customer
Combinations
Combinations are set when you want coupons to be usable together.
Note, however, that depending on the coupon type, some coupons can't be combined.
Active dates
Active dates let you set the period during which the coupon can be used.
You can set a precise start date/time through an end date/time.
3 ways to automatically apply a coupon code on Shopify
If you issue a coupon code (rather than an automatic discount) with the discount feature, customers need to enter the coupon code themselves. This section introduces 3 ways to reduce the hassle of customers having to enter a coupon code.
Issue a shareable link
A coupon code issued using Shopify's native discount feature can have a shareable link issued for it. By using this link, a customer can access your store with the coupon code already applied.
The article below explains how to issue a shareable link. Please use it as a reference.
Use the cart permalink feature
A shareable link can have a coupon code applied, but it can't automatically add the target product to the cart.
By using Shopify's "cart permalink feature," you can share a link with customers that both adds a specific product to the cart in advance and automatically applies a coupon code.
For example, when a customer clicks a link created with the cart permalink feature, a specific product can be automatically added to the cart and a 10% discount coupon automatically applied, taking them straight to the checkout page.
The article below explains Shopify's cart permalink feature in detail. Please use it as a reference.
Use a Shopify app
By using the Shopify app "RuffRuff Order Bonus," you can automatically apply a discount whenever the configured conditions are met, without having to issue a dedicated link or share it with customers. Using this app can significantly reduce the effort for both the store operator and the customer.
RuffRuff Order Bonus
RuffRuff Order Bonus lets you run a variety of discount strategies under any condition.
For example, it can run discounts such as:
- Free shipping for VIP members only
- Discounts by membership rank
- Volume discounts
- Discounts when a specific product is included
- A discount when past purchase count is 10 or more
- First-come-first-served discounts (20% off for the first 10 customers)
and more.
Many more discount strategies are possible. For details, check the service page via the button below.
Things to watch out for with the discount feature
There are restrictions on combining discounts
On Shopify, only the following discount combinations are possible:
- An order discount and a free-shipping discount
- A product discount and a free-shipping discount
- A product discount and another product discount
- A product discount and an order discount (📍)
- An order discount and another order discount (📍)
(📍) These cannot be combined if you're using checkout.liquid customizations or the Licensify app.
The article below introduces discount combinations in detail. Please use it as a reference.
Up to 5 coupon codes can be used per order
Individual coupon codes can be combined and used together. However, a maximum of 5 coupon codes can be used per order.
Up to 25 automatic discounts can be active
Up to 25 automatic discounts can be enabled at a time. This limit also includes automatic discounts created by Shopify apps.
Up to 25 automatic discounts can apply to a single order
Since the maximum number of automatic discounts that can be active at once is 25, the maximum number of automatic discounts that can apply to the same order is also 25.
Be careful how you distribute coupons that only specific users can use
When issuing a coupon usable only by specific users, make sure to properly distribute it so it reaches the users eligible to use it. Even if you issue a great coupon, it won't lead to results if you don't let the eligible users know about it and they never use it.
Also be careful not to distribute it to ineligible users.
If customers keep receiving coupons they can't use, they may stop seeing the benefit, which can lead to newsletter unsubscribes, account deletion, or other forms of customer churn.
On Shopify, you can send email to a narrowed-down set of target users. You can also easily distribute coupons to target users by using an email marketing app such as Klaviyo or Omnisend.
The article below explains the pricing and initial setup for Klaviyo and Omnisend. Please use it as a reference.
Be careful how you present it
If you set complex conditions on a coupon, make sure to clearly state them so customers can understand. There's no point issuing a coupon if it doesn't get used.
Also, depending on how a coupon is presented, it may become subject to regulation under Japan's Premiums and Representations Act, so please be careful. Below is an excerpt of information from Japan's Consumer Affairs Agency. Please check the Consumer Affairs Agency's website for details.
Q. I'm considering combining product A and product B, which are each sold individually, and selling them as "A and B as a set for ○○ yen." Would this kind of sales method be subject to premium regulation?
A. If it's clear that you are selling a combination of two or more products that are each sold individually, this does not count as an "offer incidental to a transaction" and is not subject to premium regulation.
However, if product B is offered to a purchaser of product A through a prize drawing, or if you make an announcement that could be understood as offering product B on condition of purchasing product A in a way that is perceived as a premium (e.g., "Buy A and get B as a gift," "Buy A and B comes with it," or "B is free"), this counts as an offer incidental to a transaction and is subject to premium regulation.
Watch how often you issue coupons
If you issue coupons too frequently, your store can end up with a "discount store" image, making it hard to sell at full price. Rather than issuing coupons blindly, set a clear goal, carefully consider the timing and target audience, and adjust how often you issue coupons.
Discounted prices round up when there's a fraction of a currency unit
When using Shopify's native discount feature, if the discounted price results in a fraction of a currency unit, it's rounded up. For example, if the discounted price comes to ¥999.63, it's adjusted to ¥1,000.
If you instead want fractions rounded down on the discounted price, you'll need to use a Shopify app with a rounding-adjustment feature, such as RuffRuff Order Bonus.
Recommended Shopify apps for discounts
RuffRuff 予約販売
RuffRuff 予約販売 not only lets you run pre-orders on your Shopify store, but its discount feature also lets you sell only specific products at a discount under specific conditions.
For example, you can run limited-time discounts, member-only discounts, VIP-member-only discounts, or a discount every Wednesday. It can also do something that's difficult to achieve with Shopify's native discount feature: displaying the discounted price directly on the product page and selling at that discounted price as-is.
Below are demo pages of discounted products using "RuffRuff 予約販売." Please use them as a reference.
RuffRuff Order Bonus
RuffRuff Order Bonus is a Shopify app that lets you run a variety of discount strategies under any condition.
For example, it can run discounts such as:
- Free shipping for VIP members only
- Discounts by membership rank
- Volume discounts
- Discounts when a specific product is included
- A discount when past purchase count is 10 or more
- First-come-first-served discounts (20% off for the first 10 customers)
and more.
Many more discount strategies are possible. For details, check the service page via the button below.
Frequently asked questions about the discount feature
What's the difference between a coupon code and an automatic discount?
With a coupon code, the discount is applied when the customer enters the code at purchase, whereas with an automatic discount, the discount is applied automatically whenever the conditions are met.
The article below thoroughly explains the differences between coupon codes and automatic discounts, covering not just when the discount is applied, but also differences in the conditions you can set and how many can be issued. Please use it as a reference.
What's the difference between a coupon code and a gift card?
Coupons and gift cards are alike in that both can be used to pay for a purchase, but there are some important differences, as follows.
Differences in purpose and nature
- Coupon code: a discount voucher aimed at reducing the price of a product
- Gift card: functions as a voucher with monetary value
Sale and issuance
- Coupon code: cannot be sold, and is issued by the store
- Gift card: can be sold as a regular product, and can also be used as a gift
Configuration flexibility
Coupon code:
- Can limit number of uses
- Can specify target products/collections
- Can set a minimum order quantity/amount
- Can set an expiration date
Gift card:
- No detailed settings beyond basic usage conditions
- Can be freely used up to its balance
Combining with other discounts
- Coupon code: combination restrictions depend on type
- Gift card: can be combined with most coupons
Understanding these characteristics lets you choose the method best suited to your promotional activities and customer service.
The article below explains Shopify gift cards in detail. Please use it as a reference.
The coupon code entry field isn't showing up
There are several possible reasons the coupon code entry field might not be showing up. The article below explains this in detail, so please use it as a reference.
Is there a limit on how many coupon codes I can issue?
Yes, there is.
Each store has a limit of up to 20 million coupon codes it can issue.
Can discounts be applied at the variant level?
Yes, they can.
Shopify's discount feature lets you set which products a discount applies to at the variant level.
Can I issue a coupon code in QR code format?
Yes, you can.
With the April 2026 feature update, the shareable link feature can now output a QR code format.
See here for details on the shareable link feature.
Is there a way to run discounts besides the discount feature?
Yes, there is.
By using a Shopify app, you can automatically issue coupons or directly discount a product's price.
The article below introduces Shopify apps that make possible a variety of discounts, such as VIP-member-only discounts, volume discounts, first-order discounts, and shipping discounts. Please use it as a reference.
Can I attach tags to discounts?
Yes, you can.
With the April 2026 feature update, Shopify's native discount feature now lets you attach tags to individual discounts.
Using the attached tags makes it easier to group, search, and filter discounts.
Can I attach a tag based on the coupon code that was used?
Yes, you can. This can be achieved using Shopify Flow.
The article below introduces how to use Shopify Flow to attach a customer tag or order tag based on the coupon code that was used. Please use it as a reference.
In Conclusion
Shopify's discount feature is a powerful tool that can solve a wide range of e-commerce challenges — from acquiring new customers and nurturing repeat customers, to raising average order value and managing inventory.
Here's a summary of the key points from this article:
- 4 discount types: use product discounts, order discounts, free shipping, and Buy X Get Y depending on your purpose
- Issuing takes 5 steps: easy to set up from the admin
- 6 benefits: new customer acquisition, encouraging repeat purchases, raising average order value, inventory management, running events, and preventing cart abandonment
- Important limits: a maximum of 5 per order, with restrictions on combinations
- Points to watch out for: adjusting issue frequency, and being mindful of the Premiums and Representations Act
Issuing coupons too frequently causes an image of a "discount store" to take hold, making it hard to sell at full price. Set a clear goal, and strategically plan your target audience and timing.
For more advanced strategies, also consider using apps such as RuffRuff Order Bonus, which supports discounts by membership rank and VIP-only discounts, and RuffRuff 予約販売, which supports limited-time sales.
Start with basic coupon issuance, and keep improving while measuring results with the reporting feature (Analytics > Reports > Sales by discount). A strategic approach to discounts will accelerate the growth of your Shopify store.
Finally, the article below introduces representative discount strategies achievable on Shopify. Find the strategy that's the perfect fit for your store, and use it as a springboard to boost sales.
