E-commerce Glossary · 4 min read
What is Discount Stacking?
Understanding Discount Stacking in E-commerce
Quick Definition
Discount stacking is when a shopper gets two or more discounts on the same order, such as a sale price plus a coupon code. It's also called combinable discounts, and Shopify calls it discount combinations. Stacking can be planned, like free shipping with a product discount, or accidental, and each extra layer eats into your margin.
How Discounts Stack on Shopify
Shopify sorts discounts into three kinds: product, order and shipping discounts. Every discount has a Combinations section where you pick which of those kinds it can be used with.
Two discounts only stack if both of them allow it. Say a product discount is set to combine with order discounts. The order discount also has to be set to combine with product discounts. If either one says no, they won't both apply.
Stacking isn't always a mistake, either. Free shipping plus 10% off one product is a simple planned stack. After each sale, the order page lists every discount that was used, so you can see which orders got more than one.
A $60 Serum With Two Discounts on It
Example: a weekend sale meets a welcome code
A skincare store sells a serum for $60. Each bottle costs the store $24, so a full-price sale leaves $36 of gross profit.
For a weekend sale, the owner drops the price to $48 (20% off), which leaves $24 per sale. Then a new shopper comes along with a 15% welcome code. It works on the $48 price, not the $60 one, so it takes off $7.20 and the serum sells for $40.80.
In total the shopper saved $19.20. That's 32% off, not the 35% you'd get by adding 20 and 15. The store's profit, though, fell from $36 to $16.80. More than half of it is gone. To earn what 100 full-price sales bring in ($3,600), the store now needs about 215 orders.
So two discounts that each look fine on their own can take a much bigger bite out of profit together. Decide the most you're willing to give away before you allow any stacks. Our guide to choosing a discount percentage can help you pick that number.
When Stacking Works Against You
Stacking hurts most when nobody planned it. A store runs a sitewide sale, and an old influencer code still works. Or a code leaks to a coupon site and lands on top of every sale price. Each layer looks small, but together they can wipe out the profit on low-margin products.
It can also teach shoppers to wait. If codes always work on top of sales, some people may hold off until both are live. That's one road to discount fatigue.
Planned stacks are a different story. With free shipping on top of a product discount, you can work out the cost ahead of time. If you want to know how to set combinations up and which mistakes to avoid, see our guide to stacking and combining Shopify discounts.
The Myth: Turning Off Combinations Stops All Stacking
It's easy to assume that if no discount is set to combine, nothing can stack. But when you run a sale by lowering the price and showing the old one crossed out, Shopify doesn't count that as a discount. The crossed-out number is called the compare-at price, and the lower one is just the price. So a code that doesn't combine with anything can still land on top of it, same as in the serum example.
If you want to keep a code off sale items, one way is to limit which products or collections it applies to. In Growth Suite, our app, you can leave products out of its offers by vendor, product title or sale status. You can also set a maximum discount amount. Its volume discounts can work together with its other discounts, too.
Related Terms
Growth Suite for Shopify
Put Discount Stacking into practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective discount stacking strategies.
Explore more
Resources
Shopify Upselling & Cross-Selling
Most Shopify stores leave 10-30% of revenue on the table because they do not upsell or cross-sell effectively. This...
Shopify Conversion Rate: The Complete Resource Hub
Your conversion rate is the most important number in your Shopify store. Learn how to measure it, diagnose problems,...
Shopify Holiday & Seasonal Campaign Strategies
Every holiday has its own shopping psychology. Plan year-round campaigns with the right discount, right timing, and...
Shopify Countdown Timer
Adding a timer takes 5 minutes. Making it convert without destroying trust? That's strategy. The complete guide to...
Shopify Cart Abandonment
70% of Shopify carts are abandoned. Learn why customers leave, how to prevent abandonment in real-time, and recover...
Shopify Discount
Master Shopify discounts without sacrificing your profit margins. Learn strategic discount techniques, timing...