Discounting can be a powerful way to increase sales, clear out old inventory, and encourage customer loyalty. But it’s essential to use discounting strategies wisely to ensure they’re beneficial to both your revenue and your brand’s perceived value. In this post, we’ll explore some of the top discounting strategies that Shopify merchants can use to boost sales and customer engagement.
1. Volume Discounts (Quantity Breaks)
Encourage customers to buy more by offering discounts on bulk purchases. Volume discounts, also known as quantity breaks, reward shoppers who purchase multiple units of the same item, making it an effective strategy for increasing AOV.
Example: “Buy 3, Get 20% Off” or “Save 15% when you buy 2 or more.”
Pro Tip: Use Shopify apps like Bundler – Product Bundles to set up volume discounts seamlessly and boost sales on items that customers often buy in multiples.
2. Tiered Discounts
Tiered discounts provide customers with an incentive to add more to their cart by offering progressively larger discounts based on spending thresholds. For example, customers might get 10% off when they spend $50, 15% off at $100, and 20% off at $150. This motivates customers to spend more to unlock the next discount level.
Example: “Spend $50, get 10% off. Spend $100, get 15% off.”
Pro Tip: You can easily implement this using Kai Progress bar app, which shows customers their progress toward each discount threshold right on the product and cart pages, encouraging them to add more items to unlock better savings.
3. First-Time Customer Discounts
Offering a discount to new customers is a great way to encourage first-time purchases and start building loyalty. This type of discount can help reduce the barrier to entry for customers who may be hesitant to buy from a new store.
Example: “Welcome Discount – Get 15% Off Your First Order!”
Pro Tip: Promote first-time customer discounts through pop-ups, landing pages, or email capture forms. This also lets you build your email list, so you can re-engage customers later with targeted promotions.
4. Holiday or Seasonal Discounts
Special holiday and seasonal sales are perfect for boosting sales during specific times of the year. Black Friday, Cyber Monday, Christmas, and other holidays are popular opportunities to offer time-limited discounts, creating a sense of urgency among customers.
Example: “Holiday Sale – Up to 40% Off Storewide!”
Pro Tip: Create banners or countdown timers on your Shopify store during holiday seasons to remind visitors of limited-time offers. These visual cues can help build urgency and increase conversions.
5. Buy One, Get One (BOGO)
BOGO discounts are a classic way to encourage customers to add more items to their cart. The most common BOGO deal is “Buy One, Get One Free,” but you can also get creative with it – for example, “Buy One, Get the Second 50% Off.”
Example: “Buy 1 T-shirt, Get the 2nd T-shirt 50% Off!”
Pro Tip: This strategy is great for clearing out old inventory, especially when you pair best-sellers with slower-moving items to boost sales on less popular products.
6. Free Shipping Threshold
Free shipping is highly appealing to online shoppers, with many willing to add more to their cart to reach a free shipping minimum. Set a spending threshold that customers need to reach to qualify for free shipping, encouraging them to increase their order size.
Example: “Free Shipping on Orders Over $50!”
Pro Tip: Highlight the free shipping threshold on product and cart pages, and show how close customers are to qualifying. You can easily implement this using our upcoming app
7. Flash Sales and Limited-Time Offers
Flash sales create urgency by offering discounts for a very limited period. These sales work well to capture impulse buys and drive quick sales, but should be used sparingly to maintain effectiveness.
Example: “Flash Sale – 25% Off for the Next 24 Hours!”
Pro Tip: Send an email or SMS alert to your customer list when a flash sale goes live to maximize participation. Countdown timers on product pages can also boost urgency.
8. Referral Discounts
Referral discounts encourage existing customers to refer friends and family to your store by rewarding both the referrer and the new customer. It’s a win-win that builds loyalty and drives new customers to your Shopify store.
Example: “Refer a Friend and You Both Get 10% Off Your Next Purchase!”
Pro Tip: Use referral apps like ReferralCandy to automate the process of tracking and rewarding referrals. This strategy can also grow your customer base organically.
9. Loyalty Program Discounts
Rewarding repeat customers with loyalty discounts fosters brand loyalty and encourages repeat purchases. Set up a loyalty program where customers can earn points for each purchase, which can later be redeemed for discounts or rewards.
Example: “Earn Points for Every Purchase and Redeem for Discounts!”
Pro Tip: Apps like Smile.io make it easy to implement a loyalty program on Shopify, allowing you to track points and offer exclusive discounts to loyal customers.
10. Post-Purchase Discounts
A post-purchase discount incentivizes customers to come back for a future purchase by offering them a discount after they complete their order. This is a great way to encourage repeat business and build customer loyalty.
Example: “Thank You for Your Purchase! Enjoy 15% Off Your Next Order.”
Pro Tip: Send a follow-up email with a discount code shortly after a customer completes a purchase. This can help you stay top-of-mind and increase the likelihood of repeat purchases.
11. Mystery Discounts
Mystery discounts add an element of fun and curiosity. Offer customers a mystery discount code that they can only reveal at checkout. This surprise element can make the shopping experience more engaging and encourage impulse buying.
Example: “Spin the Wheel for a Mystery Discount – Up to 25% Off!”
Pro Tip: Gamify this strategy with a “spin-the-wheel” popup, which reveals the customer’s discount. This type of interactive discounting can help drive conversions while adding excitement to the shopping experience.
Final Thoughts: Choosing the Right Discounting Strategy for Your Shopify Store
Discounting isn’t one-size-fits-all, and the right strategy depends on your business goals, target audience, and product margins. A well-executed discount strategy can enhance customer experience, increase AOV, and improve customer loyalty. Experiment with different types of discounts, track their effectiveness, and see which ones resonate best with your audience.
By implementing some of these top discounting strategies, you can boost sales while maintaining a healthy profit margin, setting your Shopify store up for long-term success.
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