How do I set a minimum purchase amount for discounts?
Muhammed Tüfekyapan
Founder & CEO
TL;DR - Quick Answer
Complete Expert Analysis
Setting Minimum Purchase Amounts for Discounts
Minimum purchase thresholds are the single most effective tool for preventing margin erosion on discount campaigns. They ensure every discount you give is given on an order large enough to justify the cost.
How to Calculate Your Minimum
| Calculation Method | Formula | Goal |
|---|---|---|
| Break-even minimum | COGS / (1 - discount%) - COGS | Zero margin loss |
| AOV uplift minimum | Current AOV x 1.2-1.3 | Drive cart growth |
| Profitable minimum | Target margin / (1 - discount%) | Ensure profit after discount |
Practical Examples
- Store AOV $65, target 20% uplift: Set minimum at $78 (rounds to $75 or $80)
- High-margin products: Lower threshold acceptable (more room for discount)
- Low-margin products: Higher threshold required (protect thin margins)
- Test: Higher threshold + higher discount vs. lower threshold + lower discount
Growth Suite: All discount types in Growth Suite support minimum purchase thresholds. Advanced Cart Drawer displays real-time progress toward the minimum, automatically suggesting products to help customers unlock the discount while increasing AOV.
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With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.
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