How to Create a Discount Code in Shopify (2026 Step-by-Step Guide)

Discount codes are the simplest lever in your store. A code like WELCOME10 can recover an abandoned cart, reward an email subscriber, or kick off a sale — and Shopify lets you create one in about two minutes.

This guide walks through every discount type, the settings that actually matter (usage limits, combinations, scheduling), and the one decision most merchants get wrong: when to use a code versus an automatic discount.

Quick Answer#

To create a discount code: Shopify admin → Discounts → Create discount → pick a type → choose Discount code → set the value, conditions, and dates → Save. The customer enters the code at checkout.

Use a code when the discount should be earned or targeted (email subscribers, influencers, cart recovery). Use an automatic discount when you want every eligible shopper to get it without typing anything — which converts better for things like quantity breaks.

The 4 Shopify Discount Types#

When you click Create discount, Shopify offers four types. Pick based on what you're trying to do:

How to Create a Discount Code (Step by Step)#

Step 1: Open Discounts#

From your Shopify admin, go to Discounts in the left sidebar, then click Create discount (top right).

Step 2: Choose a discount type#

Pick one of the four types above. We'll use Amount off order as the example (a classic WELCOME10).

Step 3: Select "Discount code"#

At the top of the page, choose Discount code (not Automatic). Then either:

• Type a custom code like WELCOME10 (easier for customers to remember), or
• Click Generate for a random code (better for one-time/influencer codes)

Tip: Custom codes that spell out the offer (SAVE15, FREESHIP) convert better than random strings because shoppers trust and remember them.

Step 4: Set the discount value#

• Choose Percentage (e.g. 10%) or Fixed amount (e.g. ₹200 / $5 off)
• If you chose "Amount off products," select which products or collections it applies to

Step 5: Add a minimum requirement (optional)#

Protect your margin with a threshold:

• Minimum purchase amount — e.g. code only works over ₹1,000
• Minimum quantity of items — e.g. only when buying 2+

Step 6: Set eligibility#

Choose who can use it:

• All customers (public promo)
• Specific customer segments (e.g. email subscribers, VIPs)

Step 7: Set usage limits#

This is where merchants lose money if they skip it:

• Limit number of times this code can be used in total — caps a viral code
• Limit to one use per customer — stops repeat abuse of a welcome code

Step 8: Set combinations#

Decide whether this code can stack with:

• Other product discounts
• Order discounts
• Shipping discounts

Be deliberate here — accidental stacking can give away more than you intend.

Step 9: Schedule it#

• Set a start date/time
• Set an end date for sales (Black Friday, festival offers) so the code expires automatically

Step 10: Save and test#

Click Save, then add a product to your cart in an incognito window, enter the code at checkout, and confirm the discount and any limits behave correctly.

Code vs Automatic Discount: The Decision That Matters#

Shopify lets the same discount be a code the customer types, or an automatic discount that applies for every eligible cart. The right choice depends on intent:

Use a discount code when:

• The discount should be earned (newsletter signup, first order)
• You're targeting a specific group (influencer, wholesale, win-back email)
• You want to track redemptions of a specific campaign

Use an automatic discount when:

• You want every qualifying shopper to get it with zero friction
• The offer should influence the buying decision on the page — like quantity breaks ("buy 3, save 10%")

That second point is key for AOV. If your "buy more save more" deal is hidden behind a code, most shoppers never see it. Automatic, on-page volume discounts convert far better because the shopper sees the reward before deciding how many to buy. (More on that in our volume & quantity discounts guide.)

Common Mistakes to Avoid#

Mistake 1: No usage limit#

A code with no total cap or per-customer limit can get shared on coupon sites and drain margin overnight. Always set limits on public codes.

Mistake 2: No expiry date#

Sale codes without an end date keep working long after the sale — and show up in coupon-site searches forever. Schedule an end date.

Mistake 3: Unintended stacking#

Leaving all "combinations" on can let a shopper stack three discounts. Decide combinations deliberately.

Mistake 4: Hiding always-on offers behind codes#

If you want a discount that grows the order (quantity breaks, free gift), don't bury it behind a code — make it automatic and visible.

Mistake 5: Forgetting to test the minimum#

Set a minimum spend? Test a cart just below and just above it. Misconfigured minimums are the most common discount support ticket.

Next Steps#

1. Decide: should this discount be earned (code) or given to everyone (automatic)?
2. Create it with the right value, minimum, usage limits, and dates
3. Always test in incognito before launching
4. For AOV-growing offers (buy more, save more), make them automatic and visible on the product page

If your goal is to grow order value rather than just give a one-time coupon, automatic quantity discounts are the better tool — and Xperts Volume Discount sets them up free in minutes, with the tiers shown right on the product page.

For deeper reading:

• How to Set Up Volume & Quantity Discounts
• How to Add a Free Gift With Purchase
• Market-Specific Discounts on Shopify

This guide was last updated June 2026 to reflect Shopify's current Discounts interface.