By the Dropship Stair team. Last reviewed: November 2026.
Key takeaways
- A Shopify discount code is a code a customer types at checkout to get a set saving, such as a percentage off, a fixed amount off, a buy X get Y deal, or free shipping.
- Shopify offers four discount types, and the right choice depends on whether you want to lift order value, clear stock, win back a cart, or reward a loyal buyer.
- Set the value, dates, usage limit, minimum order amount, and eligible products before you save the code, because a loose code can cost more than it earns.
- Share the code with a direct discount link when you can, then track it in the Sales by discount report and change what does not work.
To add a discount code to Shopify, open Discounts in your admin, choose Create discount, pick one of four discount types, choose Discount code as the method, name the code, set the value and limits, then save it and share it with customers.
Step 1: Open Discounts in your admin
Start in your Shopify admin, where discount codes are created and managed. Go to Discounts in the left menu, then choose Create discount. This is the same place you return to when you need to edit a code, turn it off, or check how it is performing.
Before you create anything, decide what the code is for. A code for new buyers is not the same as a code for clearing slow stock or winning back an abandoned cart.
Step 2: Pick your discount type
Shopify offers four discount types. Amount off products cuts the price of chosen products, collections, or variants. Amount off order cuts the total of the whole order. Buy X get Y gives a free or discounted item when a customer buys a set item. Free shipping removes the shipping charge.
Pick the type that matches your goal. Use Amount off products for a slow product, Amount off order with a minimum amount for a bigger basket, Buy X get Y to clear a related item, and Free shipping when shipping cost is the reason people leave.
Step 3: Choose Discount code as the method
Under Method, Shopify gives you two choices: Discount code and Automatic discount. Choose Discount code when you want the customer to type in a code at checkout. Choose Automatic discount only when you want the saving to apply on its own, with no code needed.
A code is the better choice when you want control over who uses the offer. You can share it with email subscribers or post it on social media. An automatic discount is better for a storewide sale where every shopper gets the same deal.
Step 4: Name the code
Give the code a short name that a customer can read, remember, and type without mistakes. You can type your own name or click Generate code and let Shopify create one for you. Either way, keep it simple and tied to the offer, so a buyer who sees it once can still use it at checkout.
Avoid special characters in code names. They are easy to mistype, hard to read on a phone, and can cause a code to fail when a customer copies it from an email or a social post. Stick to letters and numbers, use capitals for readability, and test the code yourself before you share it with anyone.
Step 5: Set the value and what it applies to
Next, set the value. Choose Percentage or Fixed amount. A percentage works well across a wide price range, because the saving grows with the order. A fixed amount works well for a clear, simple offer, such as 10 dollars off.
Then choose what the discount applies to. You can limit it to specific products, collections, or variants, or apply it to a whole order. A discount code can apply to up to 100 specific customers, products, and variants.
Step 6: Set limits, dates, and combinations
Now set the limits that keep the offer under control. Set valid dates, the number of times a code can be used, and a minimum order amount, so the discount only applies when the basket is big enough to protect your margin.
You can also limit the code to up to 100 specific customers, which is useful for a private offer or a thank you to loyal buyers. By default, only one code can be used per order, but Combinations settings can allow stacking with shipping or other order discounts. Stacking can erode profit, so test the math first.
Step 7: Save, share, and track it
Save the discount, then test it before you tell anyone about it. Add a product to your cart, enter the code at checkout, and confirm the saving applies the way you planned.
Share the code where your buyers already are. You can also share a direct link in this format: yourstore.com/discount/YOURCODE. Replace yourstore.com with your own domain and YOURCODE with the code you created. Codes also work in Shopify POS, so an in person sale can use the same offer as an online sale.
When should you use each discount type?
Use Amount off products to move a specific item, Amount off order with a minimum amount for a bigger basket, Buy X get Y to clear a related item, and Free shipping when shipping cost is the main reason people leave without buying.
Think about the customer too. A first order offer works well as a small percentage off, because it lowers the risk of trying a new store. A win back offer works well as a time limited code, because the deadline gives the buyer a reason to act now. Our guide to abandoned cart recovery on Shopify shows how a code fits into that follow up.
| Type | Best for | Watch out for |
|---|---|---|
| Amount off products | Moving a specific product, collection, or variant | A wide product list can cut margin on full price sellers |
| Amount off order | Lifting basket size with a minimum order amount | A low minimum can pay for orders that needed no push |
| Buy X get Y | Clearing a related item and adding items per order | The free item can cost more than the extra sale earns |
| Free shipping | Removing the shipping cost that stops a purchase | Heavy or low value orders can make shipping very costly |
What mistakes do store owners make with discount codes?
The most common mistake is a discount that is too deep or too wide. A large percentage off your whole store, with no end date and no minimum order amount, can bring in orders that lose money. Start small, limit the products or the buyers, and set an end date.
Another common mistake is leaving old codes live. A code from a sale months ago can still be used if it has no end date, and it can show up in a search or a coupon site long after you forgot about it. Check your Discounts page often and turn off codes you no longer need.
A third mistake is stacking discounts without checking the math. Two discounts on one order can feel generous to the buyer and painful to the store, so test combinations on a typical order before you allow them. Our guide to Shopify discount strategy explains how to plan offers that protect margin while still giving buyers a reason to order.
How do you measure whether a discount code worked?
Start with the Sales by discount report, which shows how many orders used each code and how much those orders were worth. Compare that with the cost of the discount itself. A code that brings in many orders at a small cost is doing its job.
Look beyond the first order too. A code that brings in a new buyer is worth more than one that only discounts a repeat buyer, because the new buyer may order again at full price. Pair the offer with follow up in our guide to email marketing for Shopify stores.
Also check what the code did to your average order value. If you set a minimum order amount, did buyers add items to reach it, or did they just buy the same basket at a lower price? If the average order value rose enough to cover the discount, the offer worked.
Frequently asked questions
How many discount codes can I create on Shopify?
Shopify allows up to 20,000,000 unique discount codes per store, so most stores will never reach the limit. Each code can apply to up to 100 specific customers, products, and variants. That room lets you run separate codes for sales, email, social media, and partners without reusing one code everywhere.
Can customers use more than one discount code at checkout?
By default, a customer can use only one discount code per order at checkout. You can change this in Combinations settings, which can allow a code to stack with shipping or other order discounts. Stacking can lift conversion, but it cuts margin fast, so test it on an offer first.
Why is my Shopify discount code not working?
Check the dates first, because an expired code or one that starts later will not apply. Then check the minimum order amount, the products it covers, and the usage limit. A code with special characters can also fail, so keep names simple and test it before you share it.
Can I create a discount code for specific customers only?
Yes, you can limit a code to up to 100 customers in Shopify. That makes it useful for loyal buyers, a sale, or a thank you after a problem. Pick the customers when you set up the code and use a clear name so you remember who it was for.
How do I share a Shopify discount code?
You can share a code by email, text, social media, or on your site, and customers type it in at checkout. You can also share a direct link in this format: yourstore.com/discount/YOURCODE. A link removes typing errors, so use it in emails and social posts where a click is easy.
Adding a discount code to Shopify takes only a few minutes, but the choices you make in those minutes decide whether the offer helps your store or hurts it. Pick one type, set a clear value, limit the products and the dates, test the code, and track the result. For ideas on pairing a discount with a bigger basket, read our guide to Shopify upsells and bundles.
Sources: Shopify Help Center discount codes page, checked November 2026; the Dropship Stair guides linked in this article.