How to Add Percentage Discount in Shopify: Step-by-Step Guide
Boost sales with percentage discounts! Learn the step-by-step setup in Shopify, plus expert strategies to protect your profit margins and target the right customers.
By Muhammed Tüfekyapan
Key Takeaways
- Percentage discounts create a psychological 'opportunity' feeling that fixed amounts often miss
- Amount off order is the simplest starting point for store-wide sales
- Automatic discounts reduce friction but can bleed profit by discounting customers who would pay full price
- Unique, single-use codes (like those from Growth Suite) prevent coupon leaks and protect margins
- Always calculate your break-even point before setting a percentage—50% off a product with 50% margin creates $0 profit
Running an online store is all about momentum. You get visitors, you show them great products, but sometimes they just need a little push to buy.
That push is often a percentage discount.
Think about it. "20% Off Everything" sounds way more exciting than "Save $5". It feels like a big deal. In this guide, we'll show you exactly how to set up percentage discounts in Shopify.
But we won't just tell you which buttons to click. We'll also share some expert tips on how to use these discounts without hurting your profits.
What you'll learn:
- Step-by-step process to create percentage discounts
- The difference between "Automatic" and "Discount Codes"
- How to target the right customers (so you don't give money away for nothing)
- How to combine discounts safely
1. Getting to the Discount Section in Shopify
First, let's get you to the right place.
- Log in to your Shopify Admin panel.
- Look at the left sidebar.
- Click on Discounts. You'll find it between "Marketing" and "Products".
You'll see the Discounts dashboard. If you've created discounts before, they'll show up here.
Now click the black "Create discount" button in the top right corner.
2. Picking the Discount Type: Amount Off Order
When you click "Create discount", Shopify gives you four options:
- Amount off products: Discount specific items only
- Amount off order: Discount the entire cart total
- Buy X get Y: Buy one, get one free (or discounted)
- Free shipping: Removes shipping costs
Which one should you pick?
For a store-wide sale (like "10% Off Your First Order"), go with Amount off order.
Why? It's simple for customers. They don't have to wonder if the discount works on the shirt but not the pants. It works on everything in their cart.
Click on "Amount off order" to continue.
3. Choosing the Discount Method
Now comes a big decision. How will customers use this discount?
Method 1: Discount Code
The customer types a code (like SUMMER20) at checkout.
Best for: Email campaigns, influencer deals, or "Welcome" offers.
Tip: Keep custom names easy to spell. Don't use codes where "O" (letter) looks like "0" (number). That confuses people.
Method 2: Automatic Discount
The discount shows up in the cart automatically. No code needed.
Best for: Big sales like Black Friday where you want zero friction.
Pros: Super easy for customers. High conversion.
Cons: You lose control. Every single visitor gets the discount—even the ones who were happy to pay full price.
💡 Expert Tip:
Automatic discounts can hurt your profits. They're a "one size fits all" approach. Smart brands use tools like Growth Suite to show a unique code only when a customer looks like they're about to leave. This protects your margin while still saving the sale.
4. Setting the Discount Value
This is the fun part—deciding how much to give away.
- Find the "Discount value" section.
- Select Percentage (it should already be selected).
- Enter the value.
Common examples:
- 10%: Good for "Welcome" offers. Low risk.
- 20%: Stronger push. Good for abandoned cart recovery.
- 50%: Big motivation. Best for clearance items only.
⚠️ Warning: Always check your profit margin first. If a product costs you $50 and you sell it for $100, a 50% discount means you make $0 profit on that sale.
5. Setting the Purchase Type
Shopify lets you choose when the discount applies:
- One-time purchase: The standard option. Discount works only on this order.
- Subscription: If you sell subscription products, the discount can apply to the first payment or every payment.
- Both: Works for both types.
Simple advice: If you're a normal e-commerce store selling clothes, electronics, or home goods, just pick "One-time purchase".
6. Setting Customer Eligibility
Who gets to use this discount?
- All customers: Simple. Anyone who visits your site.
- Specific customer segments: You can create groups in Shopify (like "Customers who haven't bought in 30 days") and limit the discount to them.
- Specific customers: You hand-pick individual people.
When to use what?
- Use All customers for big public sales (like Black Friday).
- Use Segments for email campaigns (like "VIP Only Sale").
7. Minimum Purchase Requirements
Do you want customers to spend a certain amount before they can use the discount?
- No minimum requirements: The discount works even on a $5 item.
- Minimum purchase amount ($): Example: "20% Off orders over $100".
- Minimum quantity of items: Example: "15% Off when you buy 2 items".
💡 Strategy Tip: Setting a minimum is great for increasing your Average Order Value. If your average order is $70, set the discount threshold at $100. This pushes people to add one more item to their cart.
8. Usage Limits
This section helps you control how many times the discount can be used.
Limit total uses
Check this if you want a "Flash Sale" feeling. Example: "First 100 people get 50% off!"
Limit to one use per customer
Highly recommended. You don't want the same person using your "Welcome" code five times. Check this box.
💡 Pro Tip:
Generic codes like WELCOME10 often end up on coupon sites (like Honey). Suddenly, everyone gets 10% off without giving you their email. The fix? Use apps that create unique, one-time codes for each visitor. This keeps the discount secure and personal.
9. Discount Combinations
Can a customer use this discount AND a "Free Shipping" code at the same time?
- Product discounts: Can they combine it with a sale on a specific product?
- Order discounts: Can they combine it with another percentage-off code? (Usually "No".)
- Shipping discounts: Can they combine it with free shipping?
⚠️ Be careful here. If you allow "Order Discounts" + "Shipping Discounts", a customer might use a 20% code AND get free shipping. That could wipe out your profit. Safe bet: Leave these unchecked unless you've done the math.
10. Setting Active Dates
When does this sale start and end?
- Start date: Default is "Right Now". You can schedule it for later (like next Monday).
- Start time: Pick the exact hour.
- Set end date (Optional): If you leave this empty, the discount runs forever.
✓ Recommendation: Deadlines create urgency. "Ends Friday at Midnight" works way better than "Sale Ongoing". Give your discount an end date.
11. Sales Channel Access
Where does this discount work?
- Online Store: Your website.
- Point of Sale (POS): Your physical shop (if you have one).
- Google / Facebook: If you sell directly on these platforms.
Usually, you want to leave "All sales channels" selected. Only change this if you're doing a platform-specific offer.
12. Review the Summary
Before you finish, look at the Summary panel on the right side of the screen.
It reads like a sentence:
"Code SUMMER20, 20% off entire order, Minimum purchase of $50, Active from today."
Read this carefully. Does it sound right? Did you accidentally type 50% instead of 5%? (It happens!)
13. Save and Activate
- Click the "Save" button at the top or bottom of the page.
- You'll see a success message: "Discount created successfully".
- Click "Discounts" in the sidebar to see your new code in the list.
14. Test Your Discount
Never assume it works. Always test!
- Open your store in a new "Incognito" or "Private" browser window.
- Add items to your cart (meet the minimum if you set one).
- Go to checkout.
- Enter your code (like
SUMMER20) and click Apply. - Check the math. If the total was $100 and you set 20% off, the new total should be $80.
- Make sure shipping rules work too.
15. Managing Your Discounts
Need to change the date or stop the sale?
- Go back to Discounts.
- Click on the discount name.
- Change any setting (like extending the end date).
- Click Save.
To Delete: Click "Deactivate" first, then "Delete discount".
To Share: Click "Promote" → "Get shareable link" or copy the settings for a new campaign.
Conclusion
Adding a percentage discount in Shopify is a basic skill every merchant needs. It's a powerful tool when you need more sales.
Key Takeaways:
- Start simple: "Amount off order" is the easiest way to begin.
- Watch your margins: Don't discount so much that you lose money.
- Use limits: "One use per customer" is your friend.
- Test everything: Always try the code yourself before you promote it.
Discounts are great tools. But remember: the best discount is one that brings you a profitable customer.
Want smarter discounts that protect your profits?
Growth Suite shows offers only to hesitant visitors—not to people who were going to buy anyway. It creates unique codes that can't be shared and truly expire when time runs out.
Try Growth Suite Free →FAQ
What's the difference between percentage and fixed amount discounts?
A percentage discount reduces the price by a ratio (like 20% off). The more they buy, the more they save. A fixed amount discount removes a specific dollar value (like $10 off) no matter how much they spend. Percentage works better for high-value orders. Fixed amount is great for clearing specific products.
Can I set a maximum discount amount for percentage discounts?
Yes! And you should. In native Shopify, this feature is limited. That's why many merchants use apps like Growth Suite to say "20% off, up to $50 max". This protects you from huge discounts on big orders.
How do I create a percentage discount for specific products only?
In Step 2, choose "Amount off products" instead of "Amount off order". Then you can search for and pick the specific collections or products you want to include.
Can customers combine multiple discount codes?
By default, no. Shopify only allows one discount code per order unless you turn on "Combinations" (see Section 9). Be careful with stacking—it can hurt your profit!
Why isn't my discount code working at checkout?
Common reasons:
- Typo: The customer spelled it wrong.
- Minimum not met: They haven't reached the minimum spend amount.
- Wrong customer: They're not in the selected customer segment.
- Already discounted: An automatic discount is already applied.
How do I track which discount codes work best?
Go to Analytics → Reports → Sales by discount. Shopify tracks exactly how many times each code was used and how much revenue it generated.
Can I create percentage discounts for subscription products?
Yes. During setup (Step 5), select "Subscription" as the purchase type. You can even make it apply only to the first payment to attract new subscribers without discounting their whole subscription.
Frequently Asked Questions
What is the difference between percentage and fixed amount discounts?
Can I set a maximum discount amount for percentage discounts?
How do I create a percentage discount for specific products only?
Can customers combine multiple discount codes in Shopify?
Why isn't my discount code working at checkout?
References & Sources
- [1] Cart Abandonment Rate Statistics - Baymard Institute (2024) View Source →
- [2] Shopify Ecommerce Market Share & Statistics - Shopify & Statista (2024) View Source →
- [3] The Psychology of Discounts - Psychology Today (2023) View Source →
Ready to Implement These Strategies?
Put this knowledge into action with Growth Suite. Start converting more visitors into customers with smart, AI-powered campaigns.
Muhammed Tüfekyapan
Founder of Growth Suite
Muhammed Tüfekyapan is a growth marketing expert and the founder of Growth Suite, an AI-powered Shopify app trusted by over 300 stores across 40+ countries. With a career in data-driven e-commerce optimization that began in 2012, he has established himself as a leading authority in the field.
In 2015, Muhammed authored the influential book, "Introduction to Growth Hacking," distilling his early insights into actionable strategies for business growth. His hands-on experience includes consulting for over 100 companies across more than 10 sectors, where he consistently helped brands achieve significant improvements in conversion rates and revenue. This deep understanding of the challenges facing Shopify merchants inspired him to found Growth Suite, a solution dedicated to converting hesitant browsers into buyers through personalized, smart offers.