Manually applying discounts on your Shopify store can be a real-time hassle and lead to errors that cost you money. That’s why I’m going to show you exactly how to set up Shopify automatic discounts, which is a total game-changer for your store. By the end of this article, you’ll have a streamlined system that saves you time, reduces errors, and boosts sales, all on autopilot!

In this step-by-step tutorial, we’ll show you exactly how to set up, manage, and optimize automatic discounts in Shopify—so you can start driving more revenue with less effort.

What is Shopify Automatic Discount? 

A Shopify automatic discount is a built-in feature that allows store owners to automatically apply discounts to customers at checkout.

Instead of asking customers to manually enter a discount code, you can set rules in Shopify that automatically apply discounts based on certain conditions—like product combinations, order totals, or purchase quantities.

Key Features of Shopify Automatic Discounts

• No code needed – the discount applies instantly in the cart or checkout.
• Set specific conditions – such as “Buy 2, get 1 free” or “10% off orders over $100.”
• Time-based control – schedule start and end dates for limited-time promotions.
• Applies to entire cart, specific products, or collections.
• Works seamlessly on desktop and mobile checkout.

Advantages of applying automatic discounts in Shopify

Using automatic discounts in Shopify is a game-changer for any online store owner, and it makes running promotions so much easier. Let’s get into the advantages of using these discounts and how they can help boost your sales.

Types of Shopify Automatic Discounts Merchants Should Know

Here is a quick table comparison of types of Shopify automatic discounts:

Discount Type	Description	Why It’s Useful
Product-Specific Discounts	Discounts applied to specific products or categories (e.g., “10% off on all T-shirts”).	Encourages sales of targeted items, ideal for promoting slow-moving or seasonal products.
Order Value Discounts	Discounts based on cart total or number of items (e.g., “Spend $100 and get 20% off”).	Boosts average order value (AOV) by incentivizing customers to spend more.
Buy X, Get Y Discounts	Offers a free or discounted product when a specific product is purchased (e.g., “Buy 1, Get 1 at 50%”).	Promotes upselling and cross-selling, increasing overall revenue per transaction.
Free Shipping Discounts	Free shipping applied when conditions are met (e.g., “Free shipping on orders over $50”).	Reduces cart abandonment by addressing shipping cost concerns.
Volume Discounts	Discounts for bulk purchases (e.g., “Buy 3 and get 15% off”).	Encourages customers to buy in larger quantities, increasing sales volume.
Bundle Discounts	Discounts for purchasing complementary items together (e.g., “Buy a laptop and case, save 20%”).	Promotes cross-selling and enhances perceived value for customers.
Tiered Discounts	Increasing discounts based on spending thresholds (e.g., “10% off over $50, 15% off over $100”).	Motivates customers to spend more to unlock higher discounts.
Time-Based Discounts	Limited-time offers or flash sales (e.g., “24-hour sale: 30% off sitewide”).	Creates urgency and drives impulse purchases.
Customer-Specific Discounts	Personalized discounts for specific groups (e.g., “10% off for new customers” or “Birthday discounts”).

So, let’s break down these detailed discount types to create a robust promotional strategy that appeals to a wide range of customers and enhances your overall business performance.

Product-Specific Discounts

These discounts are applied to specific products or categories (e.g., “10% off on all T-shirts”).

Why It’s Useful: This type of discount encourages sales of targeted items, making it ideal for promoting slow-moving or seasonal products. By focusing on specific products, you can clear inventory and make room for new stock, which helps maintain a fresh and appealing product lineup.

Order Value Discounts

Discounts are based on the total cart value or the number of items purchased (e.g., “Spend $100 and get 20% off”).

Why It’s Useful: This strategy boosts the average order value (AOV) by incentivizing customers to spend more. Higher AOVs can lead to increased revenue and profitability, as customers are more likely to add complementary items to their purchases.

Buy X, Get Y Discounts

Offers a free or discounted product when a specific product is purchased (e.g., “Buy 1, Get 1 at 50%”).

Why It’s Useful: This type of discount promotes upselling and cross-selling, increasing the overall revenue per transaction. By bundling products together, you can enhance customers’ perceived value and encourage them to explore more of your offerings.

Free Shipping Discounts

Free shipping is used when certain conditions are met (e.g., “Free shipping on orders over $50”).

Why It’s Useful: This discount reduces cart abandonment by addressing shipping cost concerns. High shipping costs are a common reason for cart abandonment, so offering free shipping can significantly improve conversion rates and customer satisfaction.

Volume Discounts

Discounts are offered for bulk purchases (e.g., “Buy 3 and get 15% off”).

Why It’s Useful: This strategy encourages customers to buy in larger quantities, increasing sales volume. Volume discounts are particularly effective for businesses selling products that are often purchased in bulk, such as office supplies or wholesale goods.

Bundle Discounts

Discounts are applied when complementary items are purchased together (e.g., “Buy a laptop and case, save 20%”).

Why It’s Useful: This type of discount promotes cross-selling and enhances the perceived value for customers. By bundling related products, you can create a more comprehensive solution that meets multiple customer needs at once.

Tiered Discounts

Increasing discounts based on spending thresholds (e.g., “10% off over $50, 15% off over $100”).

Why It’s Useful: This strategy motivates customers to spend more to unlock higher discounts. Tiered discounts create a sense of progression and reward, encouraging customers to increase their purchase amount to reach the next discount level.

Time-Based Discounts

Limited-time offers or flash sales (e.g., “24-hour sale: 30% off sitewide”).

Why It’s Useful: This type of discount creates urgency and drives impulse purchases. Time-based discounts are effective for clearing inventory quickly, generating buzz around new products, or capitalizing on seasonal demand.

Customer-Specific Discounts

Personalized discounts for specific customer groups (e.g., “10% off for new customers” or “Birthday discounts”).

Why It’s Useful: This strategy builds loyalty and strengthens customer relationships through tailored offers. By recognizing and rewarding specific customer segments, you can foster a sense of appreciation and belonging, leading to repeat business and positive word-of-mouth.

How to Set Up Shopify Automatic Discounts: A Step-By-Step Guide

In my opinion, automatic discounts are one of the easiest ways to attract more customers while saving time on manual adjustments. I’ll walk you through the process step-by-step so you can get it done quickly and start seeing results.

Step 1: Log in to your Shopify admin

Begin by logging into your Shopify store. From the left-hand menu, click on “Discounts” to access your discount settings. 

Step 2: Click “Create Discount”

Once you’re on the Discounts page, click “Create Discount” and select one of the four available discount types. For this example, select “Free shipping”.

Step 3: Choose “Automatic Discount”

In the Method section, choose “Automatic discount” and enter a name for your promotion—this will be visible to customers.
Next, configure your offer:

• Shipping region: Apply free shipping to all countries or only to selected regions.
• Purchase type: Choose whether this discount applies to one-time purchases, subscriptions, or both.
• Shipping rates: Optionally, you can exclude specific shipping rates if the order meets a certain value.

Step 4: Set Requirements and Recurrence Options

By default, the discount will apply across all eligible sales channels, including Shopify POS.

Define the minimum purchase requirements:

• Minimum value (e.g., $75), or
• Minimum item quantity (e.g., 3 items).

If offering free shipping for subscriptions, choose when it applies:

• Only to the first payment
• To specific recurring payments, or
• To all future recurring payments

Step 5: Combine with Other Discounts & Set Schedule

To combine this promotion with other product or order discounts, ensure those discounts are already set up in your store. Shopify only allows combinations under certain conditions.

Finally, set the start and end date by clicking “Set end date” for your promotion. 

Step 6: Click “Save discount” to apply your settings.

Automatic discounts will apply automatically at checkout and on cart, and you can have a maximum of 25 active automatic discounts.

How To Create A Gift With Purchase Automatic Discounts on Shopify

Step 1: Access the Discounts Section

Go to your Shopify admin panel. Navigate to Discounts and click on “Create Discount.”

Step 2: Choose Discount Type

Select the “Automatic Discount” option and choose the “Buy X, Get Y” discount type.

Step 3: Set Gifting Rules

In the Customer Buys section:

• To offer a free gift for purchasing specific products, select “Minimum quantity of items,” set it to 1 (or more), and choose the qualifying product(s).

• To offer a free gift for spending a certain amount, select “Minimum purchase amount,” set the desired threshold (e.g., $100), and choose a collection (e.g., “All Products”) or specific products.

Step 4: Define the Free Gift

In the Customer Gets section, select the product you want to offer as a free gift and set its discount value to Free.

Step 5: Additional Settings

• Optionally, limit the maximum uses per order (e.g., restrict customers to one free gift per purchase).

Name the discount (e.g., “Free Gift Over $100”). This name will appear during checkout.

Step 6: Save and Activate

Click on “Save Discount” to activate it.

Best Practices to Use Shopify Automatic Discount Code Effectively 

• Use Clear and Enticing Discount Names:  Make your discount name customer-facing and easy to understand. Instead of technical names like “FreeShip75”, use something catchy like “Free Shipping on Orders Over $75” to grab attention at checkout.
• Set Targeted Conditions to Maximize ROI:  Use minimum spend or item quantity thresholds to protect margins. For example Free shipping on orders over $100, or 10% off when customers buy 3 or more items
• Leverage Discounts to Promote Subscriptions: Apply automatic discounts to subscription products to increase long-term value. You can offer a discount on the first subscription payment; Apply it for the first few months, or Continue the discount indefinitely for loyal subscribers.
• Test One Automatic Discount at a Time per Product: Since Shopify doesn’t support stacking multiple automatic discounts, ensure you run one effective discount per product. Test various offers and monitor which performs best in terms of conversion and revenue impact.
• Create Urgency with Time-Limited Offers: Set start and end dates to create a sense of urgency. Combine with website banners or countdown timers to boost conversions during short promotional windows.
• Promote Discounts Across All Sales Channels: Shopify automatic discounts apply to online stores, POS, Buy Button, and more. Leverage this by running consistent promotions across all customer touchpoints to increase exposure.
• Combine Discounts Strategically: Shopify allows limited stacking (e.g., product discount + free shipping). Plan your promotions so that discounts complement each other, not overlap. Use apps or Shopify Plus Scripts for more complex combinations.

Bonus Tip: Use Apps for Advanced Discount Rules
For more complex conditions (like tiered pricing or customer segmentation), consider apps such as:

• Automatic Discounts & Gifts
• Discounted Upsells
• Shopify Plus Scripts (for advanced customizations)

Bottom Line

We’ve discussed the process of setting up Shopify automatic discounts, highlighting its benefits for improving sales and customer satisfaction. For best results, take time to plan your discount strategies carefully to attract customers while maintaining profitability.

FAQs