How to Create Discount Codes in Shopify

shopify discount codes

When you’re running your ecommerce business you’ll be driven by sales. They’re the cornerstone of any successful ecommerce business, and without them you won’t be able to generate any revenue. Marketing is the driving force which entrepreneurs use to generate traffic to their online stores, and ultimately increase their sales. There are a wide variety of marketing techniques which are employed by ecommerce entrepreneurs, like Facebook Advertising, or Google Adwords campaigns, but a technique which is often undervalued is the use of discount codes.

Discount codes can be used to grow your ecommerce business, and help you to convert more customers. We’ve created this article to show you how you can create discount codes on Shopify which will help your store grow. At the end of this article you’ll be able to create your own discount codes and start generating more revenue.

Let’s go.

What is a Discount Code?

shopify discount codes

A discount code is a powerful marketing strategy that can be utilized by ecommerce entrepreneurs to grow their online stores, not just as a way to get rid of excess inventory. Discount codes can be used to provide customers with a variety of different benefits, including:

  • Percentage Discount Codes – You can offer new customers a percentage discount on their first order. This will help to convert impulse buyers, or those customers who were undecided about buying a product so far.
  • Fixed Cash Discount Codes – You can offer customers who have an order value over a specific value a $5 discount code. This will help you to increase your average order value, as customers will be incentivized to purchase more products from your store.
  • Free Shipping Discount Codes – You can provide customers who have signed up to your email newsletter with a free shipping code on their next order. As you’ll be running an international business, shipping fees may vary, but customers are more inclined to purchase online if they aren’t hit with charges for shipping.

You can set specific dates for when your discount codes are valid. This is a great tactic if there is a seasonal shopping event coming up, like Black Friday, or Cyber Monday. You can create discount codes on Shopify that will run for the days which you set, and they’ll then expire. This will help to convert impulsive buyers with a time sensitive offer.

You also have the option to set a limit to the number of times that a discount is used globally. If you’ve created a $5 off voucher, for example, then you may want to limit this to 1000 orders storewide. This will help maintain the exclusivity of your store’s discount codes, which will ensure that your discount codes don’t become stale to potential customers.

It’s critical that you’re aware that your customers won’t be able to use multiple discount codes in one order. Shopify have systems in place to ensure that this happens, so you’ll never need to worry about customers taking advantage of your discount codes.

Why Should I Use Discount Codes?

As an ecommerce entrepreneur, there are a wide range of benefits that you can gain from creating discount codes for your online store. Ecommerce is undoubtedly a competitive field to be involved in, so taking advantage of marketing tactics which set you out from the crowd is a great idea.

We’ve put together a list of ways which you can use discount codes to benefit your Shopify store below:

  • Inspire Action – One of the biggest challenges that ecommerce entrepreneurs face is securing the first sale with a customer. Discount codes will inspire undecided customers to take action and go ahead with their purchase — people love a good deal! Once you’ve made a sale with a customer and they’re impressed with your products and service, they’ll be much more likely to make a repeat purchase, and refer your store to their friends.
  • Retargeting / Abandoned Cart Strategies – Discount codes can play a vital role in your retargeting and abandoned cart strategies. Customers who have abandoned cart are clearly interested in either your product or your store, so with a little persuasion you’ll be able to secure the sale. Try offering customers who have recently abandoned cart a discount code — this will help to secure more sales.
  • Reward Loyal Customers – It could be a good idea for you to reward those customers who are loyal to your store with discount codes. Not only will this grow your brand affinity with customers, it’ll also ensure that others engage with your brand. Discount codes will show to your customers that you value them, and this personal feel to shopping is great for earning repeat customers.

How to Create a Discount Code on Shopify

Now that we’ve covered some of the benefits which entrepreneurs can gain from using discount codes, it’s time to explain how you can create one for your Shopify store.

First, you’ll need to access your Shopify admin page. From here, you’ll need to select the ‘Discounts’ tab on the left sidebar.

shopify discount codes

Once you’ve landed on this page you’ll need to click the ‘Create discount’ button in the top right corner of the page. After you’ve clicked this you’ll be greeted with the following page:

shopify discount codes

Here you’ll need to give your new discount code a name — try to pick something which is relevant to the benefit that your customers will be receiving, or the occasion for the discount code being created. For example, you could enter ‘XMAS10’ if you’d like to offer a 10% discount around the Christmas holidays. Be creative here, as your customers will be entering the discount code at your checkout.

shopify discount codes

You’ll also be able to set the type of discount code — you can choose from using a percentage discount, a fixed amount, or free shipping discount codes. Once you’ve set this you’ll be able to configure which customers the discount code applies to, and which products / collections they’ll be able to use the code for.

shopify discount codes

Finally, you’ll be able to set the usage limits of your discount code. This refers to the amount of times that the code can be used, either on a global limit, or a per customer basis. You’ll then need to set the active dates for your discount code, and the date and time that you’d like the discount code to expire.

Once you’ve completed these final steps and clicked on ‘Save Discount’, your Shopify discount code is ready — congratulations!

Using Discount Codes for Your Dropshipping Business

One of the simplest ways to run your ecommerce business is with a dropshipping business model. If you run your business with this model you’ll never need to worry about managing your inventory, or holding stock. Whenever you receive an order for a product you’ll get contact your suppliers directly, who will then ship said product directly to your customer’s door. It’s a low-risk way to run your business that is easy to set up. Simply install Oberlo and you can set up your own dropshipping business today.

You can still create Shopify discount codes when you’re running a dropshipping business, as Oberlo is available on Shopify’s app store. Simply create discount codes using the instructions above and you’ll be able to take advantage of this great marketing tactic.

Start Creating Discount Codes Today

That’s it, now you know everything about discount codes, and you’re ready to start using them for your own Shopify store. Be sure to test out a variety of different discount code types, so you can garner an understanding of which types work best with your customers. We know you’ll do great!

Want to learn more?

If you’ve got any further questions about Shopify discount codes, or ecommerce in general, let us know in the comments section — we’re happy to help you on your entrepreneurial journey.

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