On your Shopify store, you’re able to create discount codes to give your customers special offers.
But what are the parameters of these discount codes, and how do they apply to the total cost of your customers’ order?
Do Shopify Discounts Apply to Shipping?
Shopify discounts on the item are calculated before shipping costs, so the cost of shipping remains the same. However, you can create discount codes that specifically give the customer free shipping in order to try and bypass this.
In this article, we will more deeply explore the topic of Shopify and their discounts!
Is Shipping Calculated After Discounts on Shopify?
Like most online stores, shipping is calculated after your discounts.
Most transactions follow a particular formula:
First, the discount percentage is applied, reducing the price.
Then, taxes are calculated based on the applicable percentage of the new price.
Finally, the appropriate shipping cost is added onto that new total, giving the final amount as the total the customer pays (assuming there are no extra fees like customization costs).
What Are the Options for Discount Codes and Shipping on Shopify?
At this time, there’s no option to make a discount code that takes a percentage off of shipping.
You can do four types of discount code:
- Dollar Value Discounts: You can make a discount code that gives your customer a certain dollar amount off of specific items or collections, or off of specified minimum orders.
- Percentage of Discounts: You can offer your customers a percentage off of the cost of specific items or collections.
- Free Shipping Discounts: You can waive your customer’s shipping fees, without altering the total cost of the item.
- Buy X, Get Y Discounts: This type of discount code promises a specified free item when your customer purchases a particular item or category of item.
Is it Possible to Combine Free Shipping with Discount Codes?
If your shop is already offering free shipping, you can also create a discount code the same as any other Shopify shop.
However, you cannot combine a free shipping discount code with any other type of discount code.
Shopify will only allow customers to use one discount code per order.
Is it Possible to Use More Than One Discount Code on Shopify?
Shopify doesn’t allow its discount codes to stack.
This means that only one discount code may be used per customer order—even if the discount codes are different types, such as Free Shipping and Percentage Discount.
What are the Best Ways To Get Discounts on Shopify Stores?
Offering discounts to your Shopify customers are an excellent way to increase customer acquisition, boost customer loyalty, and increase conversions.
However, when offering discounts, you also risk shrinking your profit margins.
You may have some customers who aren’t going to return; they’re just looking for a bargain. Or if you don’t plan your discounts in a way that benefits your shop, you may end up with a loss.
Here are a few tips for strategic discount codes:
Reward Your High Ticket Customers:
Have a few buyers who have spent more than $100 on your shop in the past month?
Offer all of these buyers an exclusive discount code. You can choose whether to give them free shipping, or a certain amount off of minimum order, or just a percentage discount on their next order.
Your customers will know you’re paying attention and will feel appreciated and want to keep coming back.
Offer A Discount Code for a Certain Product Line or Category:
Have inventory that isn’t moving, but needs to make room for new items?
You can make discount codes that apply to certain categories of items, and this can help you quickly boost sales and thin out the inventory that’s getting in your way.
Offer a Free Item When a Specific Purchase is Made:
If you have a particular item that isn’t moving, or if you have a small item with a low wholesale cost, this is a great way to incentivize purchases.
Free Shipping Can Boost Conversions:
Shipping costs are the most common reason for abandoned carts when shopping online.
Some buyers feel blindsided by the addition to their total right before they finish the transaction.
Offering free shipping is a great way to incentivize sales and give an extra gift to your customer.
Everybody Loves a Discount!
Just remember, as much as discount codes are a gift to your customer, they should be a gift to your shop too.
Make sure to plan carefully and strategically so that your discount codes boost sales and customer loyalty without making you take a major hit.