Running a Shopify store often means experimenting with discounts to attract more sales. But when it comes to offering discounts, store owners are usually faced with a choice: automatic discounts or discount codes. Both options can drive sales, but they work in very different ways—and choosing the right one depends on your store’s goals and customer experience.
For Shopify store owners looking for a comprehensive solution that combines the benefits of automatic discounts and discount codes, the Wizio: Quantity Breaks App is a game-changer. In this blog, we’ll break down what each discount type means, how they work, their pros and cons, and when to use them. By the end, you’ll know exactly which option fits your business best.
What Are Automatic Discounts?
Automatic discounts are price reductions that apply instantly without customers needing to enter a code at checkout. Once the conditions are set, the discount applies automatically when the customer qualifies.
For example:
- Buy 2, Get 1 Free
- 20% off orders above $100
- Free shipping on orders over $50
As soon as customers meet the requirements, they’ll see the reduced price in their cart.
Benefits of Automatic Discounts
- Frictionless experience: Customers don’t have to remember or enter a code.
- Clear value upfront: Discounts appear directly in the cart, making shoppers more likely to complete their purchase.
- Great for volume-based sales: Perfect for bulk discounts, bundles, or cart value promotions.
Limitations of Automatic Discounts
- Less flexible: Only one automatic discount can run at a time on Shopify.
- No viral sharing factor: Since there’s no code, customers can’t easily share the deal with friends.
- Limited personalization: You can’t create unique, customer-specific discounts.
Related reading: Next Big Trends in Shopify Apps for Bundling & Discounts
What Are Discount Codes?
Discount codes are coupon-style codes that customers enter manually at checkout to receive a discount. These codes can be shared via email, social media, or marketing campaigns.
For example:
- WELCOME10 for 10% off the first order
- FREESHIP for free shipping
- SUMMER20 for a seasonal sale
Benefits of Discount Codes
- Highly flexible: You can run multiple codes at the same time for different campaigns.
- Marketing-friendly: Perfect for promoting on ads, emails, and influencer campaigns.
- Trackable: You can see which codes are driving the most conversions.
- Personalization: Codes can be tailored for specific customer groups.
Limitations of Discount Codes
- Customer effort: Shoppers must type in the code at checkout, which can lead to mistakes or missed discounts.
- Risk of abandonment: If a customer forgets the code or can’t find it, they may leave their cart.
- Discount fatigue: Overusing codes may make customers wait for promotions instead of buying at full price.
When Should You Use Automatic Discounts?
Automatic discounts are best when you want to streamline checkout and encourage quick conversions. They work especially well in situations like:
- Running a storewide sale: Example – “20% off everything this weekend.”
- Volume discounts: Example – “Buy 3 T-shirts, get 15% off.”
- Encouraging larger carts: Example – “Spend $100 and get $20 off.”
The biggest advantage here is simplicity. Customers don’t need to do anything extra, which reduces cart abandonment and creates a smoother experience.
When Should You Use Discount Codes?
Discount codes shine in marketing and promotional campaigns. They’re ideal for:
- First-time buyer offers: “Use WELCOME10 to get 10% off your first purchase.”
- Exclusive rewards: Codes for loyal customers or email subscribers.
- Social media campaigns: Influencers sharing a discount code with their followers.
- Holiday or seasonal sales: Limited-time codes like “BLACKFRIDAY25.”
Codes not only give customers a sense of exclusivity but also allow you to track campaign performance. For example, you can see how many sales came from an Instagram campaign versus an email newsletter.
Practical Tips for Using Discounts on Shopify
Here are some smart ways to make the most of both options:
- Combine strategies – Use automatic discounts for cart-based deals and discount codes for marketing campaigns. This way, you get the best of both worlds.
- Avoid over-discounting – Too many discounts can hurt your profit margins and brand image. Use them strategically, not constantly.
- Promote clearly – Whether you’re using a code or automatic discount, highlight it on product pages, banners, and checkout pages so customers know about it.
- Test and track results – Experiment with both methods. For example, run an automatic discount for a week and then try a code-based campaign. Compare which one brings better results.
Introducing Wizio Bundle App
This app offers a user-friendly setup with no coding required, making it easy for merchants to implement flexible quantity breaks, volume discounts, and buy X, get Y free (BOGO) deals across their product range.
With features like Complete The Bundle Upsell, Frequently Bought Together (FBT) bundles, and the ability to build a box where customers can create their own bundles, the Wizio Bundle app provides a seamless shopping experience that encourages larger purchases and boosts customer loyalty.
Conclusion
On Shopify, both automatic discounts and discount codes have their place. Automatic discounts create a frictionless checkout experience, making them perfect for cart-based deals and storewide promotions. Discount codes, on the other hand, are more flexible and powerful for marketing campaigns, tracking performance, and building customer loyalty.
The key is not to choose one over the other permanently, but to use them strategically depending on your goal. For smoother checkouts and larger carts, go with automatic discounts. For campaigns and promotions, discount codes are your best bet.
By balancing both, you can drive more sales, reduce cart abandonment, and create a better shopping experience for your customers.
Also read: Volume Discount Pricing Strategy to Increase AOV
Frequently Answered Questions
1. What’s the difference between automatic discounts and discount codes on Shopify?
Ans: Automatic discounts apply instantly at checkout, while discount codes must be entered manually. The first makes checkout seamless, the second offers flexibility for campaigns.
2. When should I use automatic discounts instead of discount codes?
Ans: Use automatic discounts for cart-based deals, storewide promotions, or “buy more, save more” offers—anytime you want savings to show up without effort.
3. What are the advantages of discount codes on Shopify?
Ans: They’re flexible, trackable, and great for marketing. You can share codes in emails, ads, or through influencers while measuring campaign performance.
4. Can I use both automatic discounts and discount codes together?
Ans: No, customers can’t apply both at once. But you can run them side by side—like an automatic cart discount plus promo codes shared via ads.
5. Which option is better for reducing cart abandonment?
Ans: Automatic discounts work best because customers see savings instantly. But discount codes can create urgency when used for limited-time campaigns.
