Discount methods
You can use both discount codes and automatic discounts to create compelling promotions. Understanding the benefits and risks of discount codes and automatic discounts can help you choose the right discount method for your business goals.
Automatic discounts are discounts that are automatically applied in the cart and at checkout when eligibility conditions are met. Commonly used for site-wide sales, promotions for specific collections, or bulk purchases. Automatic discounts can help to simplify your checkout and encourage higher conversion rates and order values, but customers might not be aware that they're getting a discount, and might receive too high a discount.
Discount codes are the most common type of discount method. Customers enter a specific code at checkout to receive a discount. Commonly used for specific marketing strategies, such as email campaigns or partnerships. Discount codes can lead to increased engagement, a sense of exclusivity, and a sense of urgency, but forgotten discount codes might lead to cart abandonment.
These two methods let you provide discounts in different ways:
- If you want to send out an email campaign to a specific subset of your existing customers, then you can include a discount code for them to enter at checkout.
- If you want to run a promotion for free shipping on every order over a specific holiday, then you can add an automatic discount for all customers to create a seamless discount experience.
Discount methods apply to all discount types. Learn more about discount types.