Discount Codes & Automatic Discounts

A discount code is a coupon customers manually type at checkout, like 'WELCOME10' for 10% off, that you create under Discounts in the Admin.

Discount codes

A discount code is a coupon customers manually type at checkout, like 'WELCOME10' for 10% off, that you create under Discounts in the Admin.

Codes can be percentage-based, a fixed amount off, free shipping, or a 'buy X get Y' offer, with rules like minimum purchase amount or specific products/collections.

Real-life example: A discount code is a coupon clipped from a newspaper — the customer has to actively bring it (type it in) to get the deal.

Percentage off — e.g. 15% off entire order
Fixed amount off — e.g. ₹200 off
Free shipping — waives shipping cost
Buy X get Y — e.g. buy 2 get 1 free

Automatic discounts

An automatic discount applies itself at checkout when conditions are met — no code needed — like automatically taking 10% off orders over ₹2000.

Automatic discounts and code-based discounts can conflict; Shopify only applies one discount of each type unless you carefully plan combinations settings.

Real-life example: An automatic discount is a shop's 'buy 2 get 10% off' sign at the till — the cashier applies it automatically, the customer doesn't need to say a magic word.

Example discount setup

Discount code: WELCOME10
  Type: Percentage — 10% off
  Minimum purchase: none
  Usage limit: 1 per customer

Automatic discount: Big Cart Bonus
  Type: Percentage — 10% off
  Condition: Order subtotal >= ₹2000
  No code needed at checkout

Combining discounts and best practices

Shopify supports discount 'combinations' settings, letting you decide if a product discount can stack with an order discount or a shipping discount.

Always set start and end dates for promotional discounts, and track usage limits so a code does not get shared endlessly online and eat into your margins.

Real-life example: Discount combination rules are like a store deciding if a student discount can be used together with a festival sale — some combos are allowed, some are not, and it must be decided in advance.

Set clear start/end dates for time-limited promotions
Use usage limits to prevent codes from being shared endlessly
Test discount combinations before a big sale launch

Tip: Always test a discount code yourself in a private/incognito browser before announcing it publicly — misconfigured discounts are hard to notice from the Admin alone.