Are you ready to unlock the full potential of discounting on Shopify to increase sales and AOV? Look no further; this article has all the valuable tips you need to increase your revenue. We have put together everything in one article for your convenience. Learn how to use discounts to boost Shopify e-commerce sales in no time.
But you may ask, why discounts?
According to a recent study by DataReportal, free delivery (50.6%) and coupons (39.3%) were among the top 3 online purchase drivers worldwide. The numbers tell you how much customers love these offers and why you should too. So, keep reading as we explore different discounting types, strategies, and metrics to supercharge your Shopify e-commerce business.
Best Discount Types to Increase Revenues for Shopify Stores
Best Discount Strategies to Increase Revenues for Shopify Stores
Best E-Commerce Discount Metrics on Shopify
There are various discount types to maximize your Shopify sales potential. Some of the most frequently seen are provided below:
With currency or percentage-based deals, your items could be the top-selling products on Shopify. B2B merchants can display these deals on a specific item, total orders, or categories. E.g., “20% off on all the Superman shirts.”
Shopify buy-one-get-one-free deals are a fantastic way to encourage customers to buy more, increasing average order value (AOV). They work well for items with high margins or nearing expiration dates. E.g., “Buy one hat to get one cap free.”
Free shipping deals are in high demand on the Shopify platform. Most cart abandonments are due to high shipping costs, and free shipping increases the chances of successful checkouts. For example, “Free delivery on your order.”
Bundle discount deals encourage Shopify customers to buy several related items at a lower price. This is an excellent option for wholesalers and retailers who want to sell in bulk. This leads to an increase in AOV and helps move excess inventory. For example, “ Buy a pencil, eraser, and sharpener for a 50% off sale.”
Offering special discounts to new buyers can help grow your Shopify store’s popularity. Incentives could be gifts with purchase or percentage-off deals, such as “30% off on our summer clothes for first-time buyers.”
Seasonal promotions and clearance sales are excellent ways to move excess inventory while keeping items as good as new. A seasonal offer, e.g., “Winter Holiday Sale!” or a clearance Sale, e.g., “Up to 50% off end-of-season clothing items—limited stock.”
On special occasions, send out coupons to increase customer engagement. Creating a referral program is also a great way to attract new buyers by rewarding the old ones. A common Shopify discount code e.g., “BDAY20 – 20% off for customers on their birthday month.” Referral Programs e.g., “Refer a buddy to unlock VIP access.”
A flash sale on Shopify creates a sense of urgency leading to faster buying decisions. For example, “Flash Sale: 50% off on the last 3 Spider-Man shirts!”
A well-planned pricing strategy can be a game changer to level up your business. Giving out random sales offers on your Shopify products will cause you more loss than profit. Look at your resources, study your Shopify customers, and wait for the right time to strike. Maximize sales with smart planning and build long-term customer relationships.
Are you wondering how to do all that? Keep reading to learn various strategies for discounts to boost Shopify e-commerce sales.
Timing is crucial for maximum impact. Special offers that are timed the right way are going to improve sales and customer engagement. Below are some of the best times to promote your Shopify store sales:
Seasonal promotions: Specific times of the year when shoppers are most likely to buy.
Holiday-specific special offers: Displaying offers on specific holidays attracts consumers who want to buy themed products or gifts. Valentine’s Day, Christmas, and Shopify Black Friday sales are some of the most well-known discount periods.
Inventory-empty events: These events can help you manage stock levels and make room for new products. End-of-season sales and last-chance promotions are amazing strategies to clear inventory.
Coupons at Cart Abandonment: Send out coupons to capture hesitant buyers who leave items in their carts.
Timing strategically for sales can significantly improve your conversion and customer retention rates.
Selling items becomes easy if you target the right Shopify customers. Knowing who to sell your products to can maximize the impact of your campaigns. Are you wondering how to do that? Let us see below.
Browsing history for personalized offers: Use customer data for tailored offers. Analyze browsing patterns to present special offers on items that align with their interests. For example:
Loyalty Programs: Implement a tiered loyalty program that encourages repeat purchases.
| Tier | Rewards |
| Bronze | 10% off on the next purchase |
| Silver | 20% off + free shipping |
| Gold | 30% off + special customer service |
Exclusive deals for email subscribers: Share exclusive deals with your email subscribers. You can send out special offers like the following:
Hence, our aim should be to target the right customers with personalized special sales offers. You will be able to increase the likelihood of conversions and achieve customer loyalty.
Do you want to know how to implement discounts without compromising your bottom line? Then, you need to learn effective ways of managing your sales on Shopify. That is the secret to maintaining profitability. Let us find out how you can do it in this competitive e-commerce industry.
Set minimum purchase requirements: This strategy ensures profitability while you give special sales offers. It encourages your consumers to spend more while reducing the discount’s impact on your margins.
| Min Purchase | Deals |
| $20 – $39 | 20% off |
| $40 – $59 | 30% off |
| $60 – $79 | 40% off |
Limit the duration of discounts to boost Shopify E-Commerce Sales: Time-limited special offers will help you earn profits for your Shopify e-commerce business. For example, you can consider approaches like Weekend specials and Flash sales to create a sense of urgency in your consumers.
Special offers on high-margin products: A high-margin item’s selling price is higher than its production cost. Such items are often associated with luxury, exclusivity, or popular brands. This discounting strategy makes customers feel like they’re enjoying a premium experience without paying full price.
Loss leader strategy: In this strategy, products(called loss leaders) are sold at or below their production cost to attract shoppers. You can take advantage of this situation in the following ways:
Technology plays a big part in the effective application of discount strategies. Modern tools help further in using discounts to boost Shopify e-commerce sales. Let us find out how you can make full use of these tools.
Automated Coupon Code Generator: These automation tools are quick in action to provide unique and trackable codes at scale.
Dynamic Pricing Tools: These tools help adjust prices in real time based on the factors below:
| Factor | Impact on Pricing |
| Demand | Increase prices during high-demand periods |
| Competitor Pricing | Price adjusted to stay competitive in the e-commerce market |
| Inventory | Lower prices for overstocked products |
| Customer Segments | Offer personalized pricing to different groups |
A/B Testing Discount Offers: A/B testing optimizes in the following ways:
Shopify Analytics to Measure Discount Effectiveness: Powerful analytics tools give insights into the performance of discount campaigns. The tools help you with the following:
Another incredible strategy is creating a sense of urgency and scarcity in discounts to boost Shopify e-commerce sales. In this way, you are motivating them to make quicker purchasing decisions. And you get increased conversion rates. So, how do we do that? Let us find out.
Limited-Time Offers with Countdown Timers: Countdown timers can make your Shopify customers feel that they are missing out on something. This feeling will encourage them to act fast. Check out the below tips to implement this strategy.
Stock Levels Display: Customers experience a feeling of scarcity when you display low stock levels. They would want to buy items from your Shopify store before these ran out. Consider these tactics:
Early Birds Access to Exclusive Deals: You can drive immediate Shopify sales and create buzz if you reward early buyers. Use the following methods to apply this strategy:
Coupon Codes for One-Time Use Only: Unique coupon codes for one-time use can prevent overuse. The one-time use only creates an exclusive image of the deal fascinating your customers. You can apply these codes in the following ways:
Good promotions are a must when using discounts to boost Shopify e-commerce sales. Digital marketing can help your Shopify products get more exposure. This strategy is known to drive engagement and bring success to your business. Let us dive into how you can take advantage of this strategy.
Promotional Blog Posts: Compelling blog posts highlighting your offers will win you many readers. And readers will eventually turn into buyers. Check out the below tips to help you achieve that goal.
Discount Prizes for Social Media Contests: Social media will help you generate buzz in the digital world. Engage your audience with attractive rewards who will come for more. You can apply the following ideas:
Collaborate with Influencers To Feature Special Codes: Partner with influencers to maximize the reach and credibility of your brand. Connect and send unique discount codes to influencers to share with their followers. This will drive targeted traffic to your store creating brand recognition. You will also build trust based on third-party endorsements.
Video Tutorials for Discounted Products: Video content demonstrating your products in action can help grab attention. Incorporate attractive discount offers into your tutorials to engage viewers. Apply the following steps:
Email Marketing: Email Marketing has been used for many years now in the e-commerce industry. You can generate emails to let your audience know about these exclusive deals. These are perfect for first-time buyer offers, seasonal deals, and birthday coupons.
You can incentivize purchases effectively by applying these smart strategies above. Next, we have Discount Metrics to teach you how to measure a profitable discount. So, let’s get going.
Tracking specific metrics can help figure out if your discount strategies are working. All the tactics to boost online sales are useless if you do not know how to track discount effectiveness. The following are some of the most useful metrics in the e-commerce industry:
AOV helps determine if offers encourage larger purchases.
The higher the better showing that offers are attracting loyal customers.
It measures how many visitors have become buyers during the discounting periods.
The less the better because a low value indicates that offers are helping close sales.
All these discounting tips and tricks to boost Shopify sales are great. Luckily, you do not have to apply these strategies manually anymore. If you are on Shopify, you can streamline your discount process with Shopify e-commerce auto discount tools. Apps like DiscountRay can make it easy for you to implement varied discounts in an instant. You can track performance, manage cart rules, and much more- all in one place.
Thank you for reading and we hope it was worth it. But you will not know until and unless you try it yourself. Learning how to use discounts to boost Shopify e-commerce sales is not enough. You have to be brave enough to implement it. So, what should be your next step?
My advice is to start with small adjustments. Select which discount type is the best for your brand. Use the strategies to make smart moves. Explore all your options. Track your progress using the metrics. Use tools like DiscountRay to simplify and optimize discount campaigns. We hope to see you again with another solution to your e-commerce problem.
Discounts help to attract both old and new customers. More consumers means more buying of items. Selling more means driving more sales volume to your Shopify e-commerce business. This will eventually lead to increased profits and success of your store. Discounts not only benefit you but also make your customers happy.
Discounts → More customers → More buying of items → More selling → Shopify store success
Some of the top strategies in e-commerce are mentioned below:
Some of the most popular ways to use discounts effectively are:
Below are some of the quickest ways to increase sales:
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