As one of the leading online e-commerce platforms, Shopify can help your business grow and thrive, especially with the use of discount codes. You might not know how to create a discount code in Shopify, but many businesses want customers to be able to enter discount codes at checkout. These are used to redeem specific offers, including a percentage off, a certain dollar amount off, free shipping, etc. Offering discount codes to existing and potential customers can drive sales, increasing your profit. Now, let’s see how to create a discount code in Shopify.
Why Use Discount Codes?
Offering discounts can entice new customers to visit your store, and the lower price may help them purchase. Offering discounts to existing customers increases brand loyalty and repeat purchasing.
Benefits of Discount Codes
The benefits of discount codes apply to both businesses and consumers. Here are some of the benefits of offering discounts in your Shopify store.
Benefits for Businesses
Besides helping businesses attract new customers and retain existing ones, discount codes offer other benefits:
- Build brand loyalty: Discount codes encourage repeat customers.
- Increase sales and revenue: Offering discounts can provoke sales and increase revenue.
- Assist in clearing inventory: Use discount codes to move excess or outdated products.
- Aid in product launches: Offering discounts can generate interest and persuade new product sales.
Discount codes offer many more benefits to businesses because they are marketed to a specific audience and help facilitate partnerships and collaboration.
Benefits for Consumers
The benefits for consumers include special savings, a sense of exclusivity and savvy, and it gives them a reason to return for future purchases. Discount codes also give customers a reason to try new products and brands. Offering discount codes for special savings can entice customers to buy a product when they usually cannot.
Types of Discount Codes
Some common discount codes include percentage discounts, fixed-amount discounts, free shipping, and BOGO. Percentage discounts offer a specific percentage off the purchase at checkout, while fixed-amount discounts provide a particular dollar amount off the purchase price. Free shipping discounts are usually offered when a customer purchases over a specific amount. Buy-one-get-one discounts offer the customer either a discounted product or a free product with the purchase of a full-price product.
How Do I Add a Custom Discount on Shopify?
To add a custom discount on Shopify, log in to your Shopify Admin Dashboard and click “Discounts” in the left-hand menu. You will see a screen with all of the discounts. In the upper right corner, click the “Create Discount” button. A window will open on your screen, and you must pick the discount you want to offer. After you select the type of discount, you will be taken to a new screen where you can enter all the discount code details.
How Do I Add a Discount Code Box on Shopify?
It can be a straightforward or more complicated process to ensure the discount code box appears in the checkout menu. Here are some ways to ensure it is visible to your customers at checkout.
- Check your theme checkout setting to see if you can make the discount code box visible.
- If you use Shopify Plus, you can customize the checkout screen to include a discount code box.
- If you use a third-party app for discounts or checkout, review the settings in the app to ensure it doesn’t hide the discount code box.
- You can also edit your theme’s HTML code to add a discount code box.
If the discount code box does not appear on the checkout screen, you can contact the Shopify Help Center for assistance. However, with many themes, it should appear automatically.
Best Practices for Using Discount Codes
Utilizing discount codes, whether promotional or coupon, can significantly affect your business’s sales, customer acquisition, and brand loyalty. Here are some tips on effectively using discount codes on Shopify.
Define the Terms of the Discount
The terms of the discount will depend on what kind of discount you use. Percentage or dollar-based discounts take a certain percentage or dollar amount off at checkout. For example, 20% off your entire purchase or $5 off your purchase over $20.
A buy-one-get-one deal gives customers the option to purchase an item at a discounted or free rate. Free shipping discounts activate when a customer’s purchases reach a certain spend amount. For example, free shipping on orders of $25 or more.
Offer Discounts That Line up With Your Revenue Needs
You do not want to offer discounts that could hurt your business. You should consider all your costs to ensure that discounts do not cut into your profit.
Set Clear Limitations
You want to set clear limitations regarding how many times each customer can use a discount code. For example, a customer can only use a discount code once or twice before it deactivates. You could also limit discount codes to specific products or brands that you carry to drive sales.
Use Expiration Dates
Adding expiration dates to discount codes will create urgency in your customers. If a discount code has expired and the customer questions you about it, you can direct them to your new sales and discounts.
Make Redemption Easy
Making it easy to redeem discount codes creates a great customer experience and satisfaction. For example, when a customer enters a discount code in the discount code field, the discount should automatically apply to the order.
Track and Analyze Discount Code Performance
By utilizing Shopify Analytics, you can see which discount codes are performing well so you can use them in future campaigns. You can also see discount code usage, customer behavior, and return on investment (ROI) reports.
Learn How to Create a Discount Code in Shopify With Website on Demand
Learning how to add a discount code on Shopify is the easy part. However, creating a discount code in Shopify is a bit more tricky. You have to decide what kind of discount you want to use, what the terms of the discount will be, and more. Once you understand the process, you can easily and quickly give customers product discounts to improve customer loyalty and increase sales.
At Website on Demand, we pride ourselves on helping sellers achieve positive outcomes in their Shopify selling journey. Our Bulk Discount Now app integrates seamlessly with your existing Shopify store and will help you provide discounts to your customers.
