Discount Ray
menu-bar

First-Time Buyer Discounts on Shopify: The Ultimate Guide for Store Owners

Unlock more sales with first-time buyer discounts

Ever noticed how people flock to a good deal like bees to honey? You’re not imagining it. Since the pandemic, nearly 60% of U.S. shoppers say discounts matter more than ever when buying online. And honestly, who can blame them? With rising costs and endless options, shoppers are hunting for a reason to hit that “Buy Now” button. A first-time buyer discount might be just the nudge they need.

If you’re a Shopify store owner, thinking about launching a first-time buyer offer is a smart move. But before you whip up a coupon code and throw it on your site, there’s a lot you should know. Like how to make sure it doesn’t get abused, how to attract the right customers, and how to set it up so it runs like clockwork (without needing to babysit it 24/7).

In this guide, we’re breaking it all down—no jargon, no fluff. Just real talk about what works, what doesn’t, and how to create a first-time discount that feels less like a gimmick and more like a welcome gift.

So grab your coffee, and let’s get into it!

What Is a First-Time Buyer Discount?

A First-Time Buyer Discount is a special offer given to customers making their first purchase at your store. It’s like a welcoming gesture. It is designed to encourage them to take the plunge and make their initial purchase. Think of it as a “thank you” for giving your store a try.

Here are some common types you might use:

  • Percentage off: A set discount, like 10% or 20% off the total order.
  • Free shipping: Offering free delivery for the first purchase.
  • Gift with purchase: Including a free gift when customers buy a certain amount.
  • Fixed amount off: A specific dollar amount off the total order, like $5 off.

By providing these incentives, you make it easier for browsers to turn into buyers. It helps reduce the hesitation that often comes with buying from a new store and can nudge customers toward completing their first transaction.

Why Should You Offer Welcome Discounts

Offering first-time buyer discounts isn’t just a nice gesture—it’s a smart business move. Here’s why they work so well:

Psychological Triggers That Drive Action

Welcome discounts tap into powerful psychological triggers. These discounts create a sense of urgency—customers know the offer is limited, which pushes them to purchase before the deal expires. They also convey a sense of exclusivity, making buyers feel special and valued. This exclusivity builds trust and helps alleviate any concerns about shopping with a new store. By offering something just for first-timers, you can encourage hesitant shoppers to take that first step.

Business Benefits You Can’t Ignore

  1. Improved conversions
  2. Email list growth
  3. Increased Lifetime Value (LTV)
  4. Enhanced Customer Satisfaction
  5. Competitive Advantage
  6. Boosting Average Order Value (AOV)
  7. Social Proof and Word-of-Mouth Marketing

Benefit#1 Improved Conversions

When you offer a first-time buyer discount, you’re giving customers an extra reason to buy. It turns window shoppers into actual buyers by reducing the perceived risk and cost of their first purchase. The result? Higher conversion rates. More visitors will be encouraged to complete their purchases, boosting your sales.

Benefit#2 Email List Growth

A discount often requires customers to sign up with their email, making it a great way to grow your email list. Once they’re on your list, you can nurture these leads with future offers, personalized recommendations, and exclusive content, making it easier to convert them into repeat customers down the road.

Benefit#3 Increased Lifetime Value (LTV)

While a discount may reduce your margin on the first purchase, it can increase the lifetime value of the customer. A satisfied first-time buyer is likely to return, and studies show that acquiring repeat customers is far more cost-effective than constantly chasing new ones. Over time, that initial discount pays off as the customer makes additional purchases.

Benefit#4 Enhanced Customer Satisfaction

First-time buyer discounts make customers feel like they’re getting a good deal. This improves their shopping experience and boosts their satisfaction with your brand. Happy customers are more likely to return and recommend your store to others.

Benefit#5 Competitive Advantage

In a crowded marketplace, offering a welcome discount can set your store apart from the competition. It gives potential customers an incentive to choose you over other shops that might not offer such perks. You’re also positioning your brand as customer-friendly and generous.

Benefit#6 Boosting Average Order Value (AOV)

By offering a discount, you encourage customers to add more to their cart to maximize the value of the discount. For example, if you offer a 10% discount on orders over $50, customers may spend just a bit more to reach that threshold, helping you increase your average order value.

Benefit#7 Social Proof and Word-of-Mouth Marketing

A great first-time buyer experience encourages word-of-mouth marketing. When customers feel valued, they are more likely to share their positive experiences with others, either through reviews or on social media. This creates social proof that can attract more buyers and strengthen your brand’s reputation.

How Shopify Determines Eligibility for Welcome Discounts

Imagine you own a candy store, and you want to give a special discount to kids who’ve never bought from you before. But how do you know who’s a first-time buyer and who’s just trying to sneak extra discounts?

Shopify has some cool tricks to make sure only new customers get the discount.

When someone buys from your store, Shopify remembers their email address. If that same email tries to use the discount again, Shopify says: “Nope! You already shopped here before!”

Some sneaky people might try to use fake emails or different browsers to get the discount again. Here’s how Shopify stops them:

Email Check → If they use the same email, no discount!

Cookie Check → Shopify remembers its browser (unless they clear cookies).

Address Check → If they ship to the same address, Shopify might block it.

Let’s say your store sells cool stickers.

New Customer: Sarah visits your store for the first time, enters WELCOME10, and gets 10% off.

Returning Customer: Sarah tries to use WELCOME10 again—Shopify says, “Sorry, you already used this!”

How to Set Up First-Time Buyer Discounts in Shopify

You don’t need fancy coding or extra apps—just a few clicks in your Shopify dashboard.

Here’s how to do it:

  1. Go to Discounts in Your Shopify Admin
  2. Choose Your Discount Type
  3. Set Discount Code or Automatic
  4. Target First-Time Customers Only
  5. Set Usage Limits

Step#1 Go to Discounts in Your Shopify Admin

From your Shopify admin panel, click on “Discounts” in the left-hand menu. Then click “Create discount.”

click “create discount”

Step#2 Choose Your Discount Type

You can pick from several options, like:

  • Percentage discount (e.g., 10% off)
  • Fixed amount (e.g., $5 off)
  • Free shipping
  • Buy X get Y (e.g,. Buy one, get one free)

select first-time buyer discount types

Choose what fits your goal best.

Step#3 Set Discount Code or Automatic

Create a manual code that customers enter at checkout (like “WELCOME10”). Or, make it automatic so it applies without needing a code.

Step#4 Target First-Time Customers Only

Under the “Customer eligibility” section, select “specific customer segment” only. Choose “ customers who haven’t shopped”. Shopify will automatically apply this to customers who haven’t made a purchase before based on their email, account, or order history.

Step#5 Set Usage Limits

To avoid abuse, limit the discount to one use per customer. You can also set an expiry date or minimum purchase amount. Once you’re done, click “Save.”

You can also use third-party discount apps from the Shopify App Store.

Best Practices for Shopify Merchants

Running a successful Shopify store requires more than just great products. It’s about building trust, offering a seamless shopping experience, and optimizing your store for conversions. Offering first-time buyer discounts is a smart move—and with these best practices, it’s easier than you think.

  1. Optimize for Mobile
  2. Use High-Quality Product Images
  3. Provide Excellent Customer Service
  4. Offer Multiple Payment Options
  5. Use Clear, Concise Product Descriptions
  6. Optimize Your Checkout Process
  7. Leverage Social Proof

Practice#1 Optimize for Mobile

With a large portion of shopping happening on mobile devices, ensure your store is mobile-friendly. Shopify offers mobile-responsive themes, but always double-check that your images, buttons, and text look great and are easy to navigate on all screen sizes.

Practice#2: Use High-Quality Product Images

The product image is your customer’s first impression of your item. Use clear, high-resolution photos that show different angles of the product. Include close-ups to highlight details, and add a zoom feature so customers can get a better look.

Practice#3 Provide Excellent Customer Service

Customer service can make or break your reputation. Respond quickly to inquiries, resolve issues professionally, and offer multiple ways for customers to contact you, such as live chat, email, or phone. Great service leads to great reviews, which builds trust.

Practice#4 Offer Multiple Payment Options

Make it easy for customers to pay by offering a variety of payment methods. In addition to traditional credit and debit cards, include options like PayPal, Apple Pay, and even Shopify Payments to cater to different preferences.

Practice#5: Use Clear, Concise Product Descriptions

Your product descriptions should be informative but easy to read. Focus on benefits and key features, and keep it jargon-free. Make sure your customers understand what they’re getting and why it’s valuable.

Practice#6 Optimize Your Checkout Process

A long or complicated checkout process can lead to cart abandonment. Make your checkout process as simple and quick as possible. Auto-fill options, guest checkout, and multiple shipping options can make a big difference in improving the customer experience.

Practice#7 Leverage Social Proof

Customers trust other customers. Use reviews, ratings, and testimonials to show potential buyers that others love your products. You can even ask past customers for photos of them using your product to create real-life social proof.

How to Prevent Misuse of The Deal

These types of deals can also attract some discount abuses if you’re not careful. Luckily, there are simple ways to protect your store and ensure that only genuine new customers get the discount.

  1. Limit Code Usage
  2. Email/IP Tracking
  3. Require Login or Verified Email
  4. Track Multiple Accounts Using the Same Shipping Address
  5. Use Expiration Dates
  6. Geo-Targeting
  7. Require Account Creation

Option#1 Limit Code Usage

One of the easiest ways to prevent abuse is to set a usage limit for your discount code. You can restrict each code to be used only once per customer or limit the number of times it can be used overall. This ensures that your discount doesn’t get shared with people who aren’t eligible.

Option#2 Email/IP Tracking

Shopify lets you track email addresses and IP addresses, which can be useful in identifying repeat users. If someone tries to use a discount code more than once with different email addresses, you’ll be able to spot it. Setting up automatic checks for duplicate emails or IP addresses helps prevent multiple uses from the same customer.

Option#3 Require Login or Verified Email

Another great way to ensure you’re targeting only first-time shoppers is by requiring customers to log in or use a verified email address. By linking the discount code to their account, you can easily track their purchase history. Plus, if you require an email verification, it’s harder for customers to create fake accounts just to get the discount.

Option#4 Track Multiple Accounts Using the Same Shipping Address

Sometimes, customers might use multiple email addresses but the same shipping address to cheat the system. By tracking shipping addresses, you can easily flag multiple accounts linked to the same physical address and prevent the misuse of the discount.

Option#5 Use Expiration Dates

Adding an expiration date to your first-time buyer discount can prevent people from holding onto a discount for too long. It encourages urgency and prevents customers from waiting indefinitely to purchase while also limiting the chance for abuse over time.

Option#6 Geo-Targeting

If you’re offering the first-time buyer discount in a specific region or country, you can use geo-targeting to ensure the code is used only in the intended locations. This adds an extra layer of security and prevents international customers from accessing your local-only offers.

Option#7: Require account creation

If someone checks out as a guest (without logging in or creating an account), Shopify can’t track their purchase history across multiple sessions. That means a customer could reuse a first-time buyer code with different emails and still check out as a guest. It will be easier to bypass restrictions.

To prevent misuse, it’s best to:

  • Require account creation to use the code.
  • Use email or login-based targeting (Shopify Plus or compatible apps).
  • Combine it with IP tracking or single-use codes to add more layers of protection.

Maximize Your First-Time Buyer Offer with These Promotional Tips

Once you’ve set up your discount, it’s time to get the word out! Here are some effective ways to promote your offer:

A well-timed pop-up on your homepage can immediately grab the attention of visitors, promoting the discount and encouraging them to complete their first purchase.

Don’t let visitors slip away without grabbing the discount. Exit-intent pop-ups trigger when someone is about to leave your site, offering them the discount code right before they go.

Leverage your social media platforms to showcase the offer. Create eye-catching posts, stories, and ads to drive traffic to your store and encourage first-time purchases.
Set up automated welcome emails to greet new subscribers, and include the first-time buyer discount as part of your email flow. This ensures no new customer misses out!

Is It Working? How to Track and Optimize Your Discount Campaign

Tracking the performance of your first-time buyer discount is essential to see if it’s driving the results you want. Key metrics to watch include:

  • Conversion Rate: Are more visitors turning into paying customers?
  • Average Order Value (AOV): Is your discount encouraging higher spending?
  • Customer Retention: Are these first-time buyers coming back?

Use tools like Shopify Analytics or Google Analytics to gather data on these metrics.

track first-timer buyer discount performance

Sales by discount report from Shopify Analytics

Once you have the numbers, interpret them to assess the effectiveness of your offer. For instance, if AOV is high but retention is low, consider adding a follow-up incentive. Regularly optimize your offer based on these insights to ensure you’re getting the best return on your discount strategy.

Beyond First-Time Buyers — What’s Next?

Once you’ve converted your first-time visitors into buyers, the next step is to keep them engaged and coming back for more.

Reward your customers for repeat purchases with a loyalty program. Points, discounts, or exclusive offers keep them coming back.

Use customer data to create personalized discounts or product recommendations based on their past purchases.

Set up automated email campaigns that nurture customers post-purchase. Send follow-up emails with special offers and encourage them to shop again.

Conclusion

First-time buyer discounts aren’t just a nice-to-have. They’re a powerful tool to boost conversions, grow your email list, and build long-term customer relationships. From pop-ups to personalized emails, you have plenty of ways to make it work. The best part? You don’t have to go all in right away. Start small, test what works for your store, and tweak along the way. It’s all about finding what turns browsers into loyal buyers.

FAQ: First-Time Buyer Discounts on Shopify

Can guest checkouts use the code?

Guest checkouts can use a discount code on Shopify. However, Shopify can’t always verify if they’re truly first-time buyers. So, if you want to keep the offer exclusive to real first-time buyers, ask for logins or verified emails.

What if someone uses two emails?

If someone uses different emails, Shopify may treat them as new customers. To prevent misuse, require login, use one-time codes, or track IPs and shipping addresses.

Start for Free – 14-Day Trial of Premium Features!

Get started with our free plan or unlock premium features with a 14-day free trial.
30-day money-back guarantee!

en_USEnglish