How Cart Discounts Can Increase Shopify Sales

Introduction

Cart discounts are a valuable strategy for store owners to drive sales, increase average order value, and enhance customer satisfaction. This blog explores the best methods and practices for implementing Shopify cart discounts effectively in your Shopify store. Using Shopify cart discounts boosts sales by encouraging customers to add more products and complete their purchase.

What are the discount scenarios in e-commerce that are handled by shopify default and how ( excluding Shopify Plus)?

Shopify’s native discount features allow store owners to create compelling offers that encourage purchases. Below, we outline three scenarios for implementing Shopify cart discounts using Shopify’s default settings, including coupon codes and automatic discounts. These default options are part of basic Shopify promotions designed to increase Shopify sales without apps.

 

 

Scenario Condition Discount Type Discount Value Discount Method Discount Scenario
1 Total Value of Cart ≥ $100 Percent Off 5% Coupon Code Discount Rule: 5% off for carts with a total value ≥ $100 USD

Coupon code: Applied at checkout

Stacked Discounts: Not allowed

Product: T-Shirt (Summer Collection)

  • Price: $40 USD
  • Quantity: 3
  • Cart Subtotal: $120 USD
  • Discount (5%): $6 USD
  • Final Total: $114 USD
2 Total Quantity in Cart ≥ 20 Percent Off 10% Automatic Discount Discount Rule: 10% off for carts with 20+ items

Automatic Discount: Applied at checkout

Stacked Discounts: Not allowed

Product: Socks (Basic Pack)

  • Price: $5 per pack
  • Quantity: 20 packs
  • Cart Subtotal: $100 USD
  • Discount (10%): -$10 USD
  • Final Total: $90 USD
3 Total Value of Cart ≥ $100 and Customer Tag: Special Amount Off $20 Coupon Code Discount Rule: $20 off for carts with a total value ≥ $100 USD and Customer Tag: Special

Coupon code: Applied at checkout

Stacked Discounts: $20 off cart + free shipping for carts over $100 USD

Product: Sneakers (Classic Style)

  • Price: $75 USD
  • Quantity: 2
  • Cart Subtotal: $150 USD
  • Discount ($20): $20 USD
  • Final Total: $130 USD
  • Configure it in the “Discounts” section under “Amount off on order.”
  • Automated discounts will apply to all customers, and you can target specific customers or groups by using a coupon code.
  • The discount will only apply to the subtotal, not to individual line items.
  • These Shopify cart discounts provide essential building blocks for improving Shopify sales conversion and customer satisfaction.

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What are the discount scenarios in e-commerce that are not handled by shopify default ( excluding Shopify Plus) but can be achieved using shopify discount apps?

Apps can enhance Shopify’s native discount functionality by offering more flexibility, such as item-level discounts or advanced customer segmentation. Here are some scenarios demonstrating how apps handle Shopify cart discounts, focusing on automatic discounts without coupon codes. These advanced discounts are key in modern Shopify discount strategies to increase Shopify sales and reduce cart abandonment.

 

Scenario Condition Discount Type Discount Value Application Level Discount Handling Scenario
1 Total Value of Cart ≥ $100 Percent Off 5% Subtotal Level Discount Rule: 5% off for carts with a total value ≥ $100 USD

Automatic Discount: Applied at checkout via automatic discount on cart subtotal

Stacked Discounts: None

Product: T-Shirt (Summer Collection)

  •  Price: $40 USD
  • Quantity: 3
  • Cart Subtotal: $120 USD
  • Discount (5%): $6 USD
  • Final Total: $114 USD
2 Total Quantity in Cart ≥ 20 Percent Off 10% Item Level Discount Rule: 10% off for carts with a total quantity ≥ 20 items

Automatic Discount: Applied at checkout via automatic discount on product level

Stacked Discounts: None

Product: Socks (Basic Pack)

  • Price: $5 USD
  • Quantity: 20
  • Cart Subtotal: $100 USD
  • Discount (10%): $10 USD
  • Final Total: $90 USD
3 Total Value of Cart ≥ $100 Amount Off $20 Subtotal Level Discount Rule: $20 off for carts with a total value ≥ $100 USD

Automatic Discount: Applied at checkout via automatic discount on cart subtotal

Stacked Discounts: $20 off cart subtotal + free shipping for carts over $100 USD

Product: Sneakers (Classic Style)

  • Price: $75 USD
  • Quantity: 2
  • Cart Subtotal: $150 USD
  • Discount ($20): $20 USD
  • Final Total: $130 USD

Using Shopify discount apps enables more complex promotions, helping to boost Shopify sales conversion and deliver better cart abandonment solutions. These apps allow store owners to tailor their Shopify cart discounts for maximum impact.

Item-Level vs. Cart-Level Discounts: Which to Choose?

Item-level discounts apply to specific products, while cart-level discounts reduce the entire cart subtotal. Here’s how they compare:

Discount Type Pros Cons
Item-Level
  • Precise Targeting: Promote specific products or collections. 
  •  Personalized Offers: Use customer tags for tailored promotions. 
  • Inventory Control: Clear slow-moving stock.
  • Complex Setup: Requires apps or Shopify Plus for advanced rules. 
  • Customer Confusion: Partial discounts may seem unclear.
Cart-Level
  • Simple Setup: Easy to configure in Shopify. 
  •  Boosts AOV: Encourages larger purchases with thresholds. 
  • Seamless Experience: Automatic discounts reduce checkout friction.
  • Lower Margins: Discounts all items, not just targeted ones. 
  • Less Targeted: One-size-fits-all approach.

Choosing the right discount type is crucial for your Shopify pricing strategy and achieving an AOV increase Shopify merchants aim for. Both can be part of effective Shopify cart discounts that increase Shopify sales.

Conclusion

Cart discounts, whether applied natively in Shopify or enhanced through apps, are a versatile strategy to drive sales and improve customer loyalty. By understanding the differences between item-level and cart-level discounts and leveraging Shopify’s built-in discount feature or Shopify discount apps for advanced discount functionality, store owners can craft targeted promotions aligned with their business goals.

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