Creating Discount Codes

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Discount codes (also called promo codes or coupon codes) are a powerful marketing tool to drive sales, reward loyal customers, and attract new buyers. Learn how to create and manage discount codes effectively!

What Are Discount Codes?

Discount codes are special codes that buyers enter at checkout to receive a discount on their purchase.

Example:

• Code: SUMMER20
• Discount: 20% off
• Buyer enters code at checkout
• Total price is reduced by 20%

Why Use Discount Codes?

Benefits for you:

• Drive sales: Encourage purchases with limited-time offers
• Reward loyalty: Thank repeat customers
• Attract new buyers: First-time buyer discounts
• Clear inventory: Discount slow-moving products
• Track marketing: See which campaigns work best

Benefits for buyers:

• Save money: Get products at lower prices
• Feel valued: Exclusive codes make them feel special
• Try new products: Lower risk to try something new

Navigation: Getting to Discount Codes

1. Go to your Seller Panel (click your profile icon in the top right, then select "Seller Panel")
2. In the left sidebar, click on Marketing
3. Click on Discount Codes

You'll now see your discount codes management page.

Types of Discount Codes

1. Percentage Discount

How it works: Reduces the total by a percentage.

Examples:

• SAVE10 = 10% off
• SUMMER20 = 20% off
• BLACKFRIDAY50 = 50% off

Best for: General promotions, seasonal sales, loyalty rewards

2. Fixed Amount Discount

How it works: Reduces the total by a specific dollar amount.

Examples:

• SAVE5 = $5 off
• WELCOME10 = $10 off first order
• FREESHIP = $4.99 off (equivalent to free shipping)

Best for: First-time buyer incentives, minimum purchase promotions

3. Free Shipping

How it works: Removes shipping cost from the order.

Examples:

• FREESHIP
• SHIPFREE
• NOSHIP

Best for: Reducing cart abandonment, encouraging larger orders

4. Buy X Get Y

How it works: Buy a certain quantity, get a discount on additional items.

Examples:

• Buy 2, Get 1 Free (BOGO)
• Buy 3, Get 20% off
• Buy $50, Get $10 off

Best for: Increasing average order value, moving inventory

Creating Your First Discount Code

Let's create a discount code step by step!

Step 1: Click "Create Discount Code"

On the Discount Codes page, click the Create Discount Code button.

Step 2: Choose Discount Type

Select the type of discount you want to offer:

• Percentage Off
• Fixed Amount Off
• Free Shipping
• Buy X Get Y

For this example, we'll create a percentage discount.

Step 3: Enter Code Details

Code (Required)

The actual code buyers will enter at checkout.

Best practices:

• Keep it short: 6-12 characters
• Make it memorable: Easy to type and remember
• Make it relevant: Relate to the promotion
• Use uppercase: Easier to read and type

Good codes:

• SUMMER20 (seasonal + discount amount)
• WELCOME10 (purpose + discount amount)
• SAVE15 (action + discount amount)
• FLASH50 (urgency + discount amount)

Bad codes:

• X7K9P2M (random, hard to remember)
• discount (too generic, not specific)
• mysuperlongdiscountcode2024 (too long)

Discount Value (Required)

The amount or percentage of the discount.

For percentage discount:

• Enter a number between 1-100
• Example: 20 for 20% off

For fixed amount discount:

• Enter a dollar amount
• Example: 10 for $10 off

**Pro Tip **: Round numbers work best! 10%, 15%, 20%, 25%, 50% are easier to understand than 13% or 17%.

Description (Optional but Recommended)

Internal description for your reference.

Example:

Summer 2024 promotion - 20% off all products. Valid June 1-30.

Why add a description?: Helps you remember what each code is for, especially if you have many codes!

Step 4: Set Usage Limits

Control how many times the code can be used.

Total Usage Limit

Maximum number of times the code can be used across all buyers.

Examples:

• 100 = First 100 buyers can use it
• 1000 = First 1000 buyers can use it
• Unlimited = No limit

When to use limits:

• Limited-time flash sales
• Exclusive promotions
• Scarcity marketing ("Only 50 codes available!")

Per-Customer Usage Limit

Maximum number of times ONE buyer can use the code.

Examples:

• 1 = One use per customer (most common)
• 3 = Up to 3 uses per customer
• Unlimited = Customer can use it multiple times

**Pro Tip **: Set to 1 for most promotions to prevent abuse!

Step 5: Set Minimum Purchase Requirements (Optional)

Require buyers to spend a minimum amount to use the code.

Examples:

• No minimum = Code works on any purchase
• $25 minimum = Must spend at least $25
• $50 minimum = Must spend at least $50

Why use minimums?:

• Increase average order value
• Ensure profitability (don't lose money on small orders)
• Encourage buyers to add more items

Example strategy:

• Code: SAVE10
• Discount: $10 off
• Minimum: $50
• Result: Buyer must spend $50 to save $10 (20% discount)

Step 6: Set Valid Date Range

Control when the code is active.

Start Date

When the code becomes active.

Examples:

• Today (immediate activation)
• Future date (scheduled promotion)

End Date

When the code expires.

Examples:

• 7 days from now (week-long sale)
• 30 days from now (month-long promotion)
• Specific date (holiday sale ends Dec 25)
• No end date (ongoing code)

**Pro Tip **: Always set an end date! Creates urgency and prevents codes from being used indefinitely.

Step 7: Select Applicable Products (Optional)

Choose which products the code applies to.

Options:

• All products: Code works on any product (most common)
• Specific products: Code only works on selected products
• Specific categories: Code only works on products in selected categories
• Specific collections: Code only works on products in selected collections

When to limit products:

• Clearing specific inventory
• Promoting new products
• Category-specific sales

Example:

• Code: TSHIRT20
• Discount: 20% off
• Applies to: T-Shirts category only

Step 8: Save Your Code

Click Create Discount Code to save!

Your code is now active (if start date is today) and ready for buyers to use!

Managing Existing Discount Codes

Viewing Active Codes

On the Discount Codes page, you'll see all your codes with:

• Code name
• Discount amount
• Usage count (how many times it's been used)
• Total usage limit
• Start and end dates
• Status (Active, Scheduled, Expired)

Editing a Code

1. Find the code you want to edit
2. Click the Edit button (pencil icon)
3. Update any details (except the code itself - codes can't be changed once created)
4. Click Save Changes

What you can edit:

• Discount value
• Description
• Usage limits
• Minimum purchase
• Date range
• Applicable products

What you CAN'T edit:

• The code itself (if you need a different code, create a new one)

Deactivating a Code

To stop a code from working immediately:

1. Find the code
2. Click Deactivate or Disable
3. Confirm

What happens:

• Code stops working immediately
• Buyers see "Invalid code" if they try to use it
• You can reactivate it later if needed

Deleting a Code

To permanently remove a code:

1. Find the code
2. Click Delete (trash icon)
3. Confirm deletion

Warning: This is permanent! The code and all its usage data will be deleted.

**Pro Tip **: Instead of deleting, consider deactivating codes. You can reactivate them later and keep the usage history!

Best Practices for Discount Codes

1. Create Urgency with Expiration Dates

Why it works: Limited-time offers create FOMO (fear of missing out) and drive immediate action.

Examples:

• "Use code FLASH24 for 24 hours only!"
• "Summer sale ends June 30 - use SUMMER20"
• "Weekend special: WEEKEND15 expires Monday"

2. Use Clear, Memorable Codes

Why it works: Easy codes are more likely to be used and shared.

Good codes:

• WELCOME10 (new customers understand immediately)
• SAVE20 (clear benefit)
• FREESHIP (obvious what it does)

Bad codes:

• XK9P2M (confusing, hard to remember)
• PROMO (too generic, doesn't specify discount)

3. Set Minimum Purchase Requirements

Why it works: Increases average order value while still providing value to buyers.

Example:

• Code: SAVE15
• Discount: $15 off
• Minimum: $75
• Result: Buyer spends $75 to save $15 (20% discount)

4. Limit Uses Per Customer

Why it works: Prevents abuse and ensures fair distribution.

Recommendation: Set to 1 use per customer for most promotions.

Exception: Loyalty codes for repeat customers can allow multiple uses.

5. Track Performance

What to monitor:

• How many times each code is used
• Revenue generated from each code
• Which codes have the best conversion rates
• Which codes are ignored

Use this data to:

• Identify successful promotion types
• Optimize discount amounts
• Plan future campaigns

6. Promote Your Codes

Where to share codes:

• Shop announcement banner
• Social media posts
• Email newsletters
• Product descriptions
• Checkout page
• Thank you emails

**Pro Tip **: Don't hide your codes! Make them easy to find and use.

7. Test Different Discount Amounts

Try different percentages:

• 10% off (small discount, higher profit)
• 15% off (moderate discount, balanced)
• 20% off (significant discount, strong incentive)
• 25%+ off (aggressive discount, clear inventory)

Monitor results: Which discount amount drives the most sales while maintaining profitability?

Common Discount Code Strategies

Strategy 1: Welcome Discount for New Customers

Goal: Convert first-time visitors into buyers

Code: WELCOME10 or FIRST15
Discount: 10-15% off or $10 off $50
Limit: 1 use per customer
Duration: No expiration (ongoing)

Why it works: Reduces risk for first-time buyers, encourages them to try your products.

Strategy 2: Flash Sale for Urgency

Goal: Drive immediate sales with urgency

Code: FLASH24 or FLASH50
Discount: 20-50% off
Limit: 100 uses total
Duration: 24-48 hours

Why it works: Scarcity (limited uses) + urgency (short duration) = immediate action!

Strategy 3: Seasonal Promotion

Goal: Capitalize on seasonal shopping

Code: SUMMER20 or HOLIDAY25
Discount: 20-25% off
Limit: Unlimited
Duration: Entire season (e.g., June 1 - Aug 31)

Why it works: Aligns with buyer shopping behavior, extends promotion for maximum reach.

Strategy 4: Minimum Purchase Incentive

Goal: Increase average order value

Code: SAVE15
Discount: $15 off
Minimum: $75 purchase
Limit: 1 use per customer
Duration: 30 days

Why it works: Encourages buyers to add more items to reach the minimum.

Strategy 5: Free Shipping Threshold

Goal: Reduce cart abandonment

Code: FREESHIP
Discount: Free shipping
Minimum: $50 purchase
Limit: Unlimited
Duration: Ongoing

Why it works: Shipping costs are a top reason for cart abandonment. Free shipping removes that barrier!

Strategy 6: Loyalty Reward

Goal: Thank repeat customers

Code: LOYAL20 or VIP25
Discount: 20-25% off
Limit: 3 uses per customer
Duration: No expiration

Why it works: Rewards loyalty, encourages repeat purchases, builds customer relationships.

Strategy 7: Product-Specific Promotion

Goal: Move specific inventory or promote new products

Code: TSHIRT15 or NEWMUG20
Discount: 15-20% off
Applies to: Specific product category
Limit: Unlimited
Duration: 14-30 days

Why it works: Targets specific products that need a sales boost.

Common Discount Code Mistakes to Avoid

1. Discount Too High

Mistake: Offering 50% off when your profit margin is only 40%

Result: You lose money on every sale!

Solution: Calculate your profit margin first, then set sustainable discounts (typically 10-25%).

2. No Expiration Date

Mistake: Creating codes with no end date

Result: Codes get shared indefinitely, reducing urgency and cutting into profits long-term.

Solution: Always set an expiration date, even if it's 6-12 months out.

3. Too Many Active Codes

Mistake: Having 10+ active codes at once

Result: Confuses buyers, dilutes the value of each code, makes tracking difficult.

Solution: Keep 2-4 active codes maximum (e.g., welcome code, seasonal code, loyalty code).

4. Complicated Codes

Mistake: Using codes like XK9P2M7Q

Result: Buyers can't remember or type them correctly, leading to frustration.

Solution: Use simple, memorable codes like SAVE20 or WELCOME10.

5. No Minimum Purchase

Mistake: Offering $10 off with no minimum

Result: Buyers purchase $12 items, you make $2 before fees and shipping (unprofitable!).

Solution: Set minimum purchase requirements (e.g., $10 off $50 minimum).

6. Not Promoting Codes

Mistake: Creating codes but not telling anyone about them

Result: Codes go unused, promotion fails.

Solution: Actively promote codes on social media, email, shop banner, etc.

7. Allowing Unlimited Uses Per Customer

Mistake: Letting one customer use a code 50 times

Result: One person gets massive discounts, you lose significant revenue.

Solution: Limit to 1-3 uses per customer for most codes.

Tracking Discount Code Performance

Key Metrics to Monitor

1. Usage Count

• How many times has the code been used?
• Is it being used as expected?

2. Revenue Generated

• How much total revenue came from this code?
• Is it driving significant sales?

3. Average Order Value

• What's the average order size when this code is used?
• Are buyers spending more or less than usual?

4. Conversion Rate

• How many people who see the code actually use it?
• Is the code compelling enough?

5. Customer Acquisition Cost

• How much discount are you giving per new customer?
• Is it sustainable?

Using Performance Data

High-performing codes:

• Extend duration
• Increase promotion
• Create similar codes
• Use as template for future promotions

Low-performing codes:

• Increase discount amount
• Improve promotion
• Simplify code name
• Adjust minimum purchase requirements
• Consider deactivating

Discount Code Checklist

Use this checklist when creating discount codes:

Code Setup

• Code name is short, clear, and memorable
• Discount amount is profitable (doesn't exceed profit margin)
• Discount type is appropriate (percentage, fixed, free shipping)
• Description is added for internal reference

Usage Limits

• Total usage limit is set (or intentionally unlimited)
• Per-customer limit is set (typically 1)
• Minimum purchase requirement is set (if applicable)

Timing

• Start date is set
• End date is set (creates urgency)
• Duration is appropriate for promotion type

Targeting

• Applicable products are selected (all or specific)
• Target audience is clear (new customers, loyal customers, everyone)

Promotion

• Code is promoted on shop banner
• Code is shared on social media
• Code is included in email marketing (if applicable)
• Code is easy to find and use

Tracking

• Performance metrics are monitored
• Code effectiveness is evaluated
• Adjustments are made based on data

Examples of Effective Discount Codes

Example 1: Mountain Designs Co

Welcome Code:

• Code: WELCOME15
• Discount: 15% off
• Minimum: $30
• Limit: 1 per customer
• Duration: Ongoing

Seasonal Code:

• Code: SUMMER20
• Discount: 20% off
• Minimum: None
• Limit: Unlimited
• Duration: June 1 - Aug 31

Flash Sale:

• Code: FLASH50
• Discount: 50% off
• Minimum: None
• Limit: First 50 uses
• Duration: 24 hours

Example 2: Vintage Vibes Shop

New Customer Code:

• Code: FIRST10
• Discount: $10 off
• Minimum: $50
• Limit: 1 per customer
• Duration: Ongoing

Loyalty Code:

• Code: VIP20
• Discount: 20% off
• Minimum: None
• Limit: 3 per customer
• Duration: No expiration

Free Shipping Code:

• Code: SHIPFREE
• Discount: Free shipping
• Minimum: $40
• Limit: Unlimited
• Duration: Ongoing

Related Guides

Check out these related guides:

• Enabling Affiliate Program - Let others promote your products
• Promoting Your Products - Marketing best practices
• Shop Analytics - Track code performance
• Email Marketing - Promote codes via email
• Social Media Marketing - Share codes on social platforms

Still have questions? Contact our support team or visit the Help Center!

Watch Video Tutorial: [VIDEO_PLACEHOLDER]

Discount codes are your secret weapon for driving sales! Use them strategically to grow your business!