How do I create a discount code in Shopify?

Go to Discounts > Create discount, choose the type, set conditions and limits, and generate the code.

Can a discount code stack with an automatic discount?

No — a cart can have one automatic discount OR discount codes, not both at once.

Can I limit a discount code to specific customers?

Yes — limit by customer segment, minimum spend, usage count, or selected products and collections.

How many discount codes can I create?

Shopify allows up to 10,000 active discounts; use Bulk Discount Code Generator apps for large sets.

Can I track which channel a discount code came from?

Yes — unique codes per email, ad, or partner give you clean per-channel attribution.

Glossary Term

D

Discount Codes

Promo codes customers enter at checkout for a percentage, fixed amount, or free-shipping discount.

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Key Takeaways
Discount Codes are promo codes customers enter at checkout for a percentage, fixed, free-ship, or Buy X Get Y discount.
Created under Discounts; limit by date, usage, customer segment, minimum spend, and product/collection.
Unlike automatic discounts, codes require the shopper to enter them — ideal for tracked campaigns.
Unique codes per channel or partner give you clean attribution for email, affiliates, and ads.
Watch for code-stalking and margin erosion; reserve codes for tracked campaigns.

Overview

Discount Codes are customer-entered promo codes that apply a discount at checkout — percentage off, fixed amount, free shipping, or Buy X Get Y. Created under Discounts in the Shopify admin, they can be limited by date, usage count, customer segments, minimum order value, and product or collection.

Unlike automatic discounts, which apply with no code, discount codes require the shopper to enter them, so they're ideal for targeted campaigns — email lists, affiliates, influencers, and paid ads — where you want to track which code drove the sale.

Codes are a measurement tool as much as a discount tool. Unique codes per channel or partner tell you exactly where revenue came from, which makes them central to email marketing and PPC attribution. The risk is margin erosion and 'code-stalking' (shoppers hunting for codes before checkout), which is why many brands reserve codes for tracked campaigns and use automatic discounts for storewide sales.

1

Why Discount Codes Matter for Shopify Merchants

1
Track Campaign Performance
Unique codes per channel tell you exactly which email, ad, or partner drove the sale.
2
Targeted Promotions
Limit codes to segments, first-time buyers, or specific products and collections.
3
Influencer and Affiliate Tracking
Give each creator their own code to measure reach and reward accurately.
4
Urgency and Scarcity
Time-limited and usage-limited codes create real urgency without permanent markdowns.
5
Flexible Offer Types
Percentage, fixed amount, free shipping, and Buy X Get Y from one tool.

2

Running Discount Codes Without Eroding Margin

1
Use automatic discounts for storewide sales
Reserve codes for tracked campaigns so shoppers aren't trained to hunt for them.
2
Set a minimum spend
Tie codes to a cart threshold so they lift AOV, not just discount it.
3
Limit usage
Cap total uses and per-customer uses to keep a code from running away.
4
Segment your audience
Send codes to specific segments via email marketing rather than blasting them publicly.
5
Measure incrementality
Track revenue and margin per code in your analytics dashboard to confirm the code grew profit.