The Hidden Truth About Discounting in Shopify

Most Shopify merchants default to percentage-based discounts—it seems simple: “Get 20% off!” But what if this approach is silently hurting your sales and margins? Flat discounts (e.g., Buy X for $Y or “Get $10 Off”) are often more effective at boosting conversions and increasing AOV (Average Order Value).

Let’s break down why percentage discounts often fail and how flat discounts can maximize your store’s profitability.

The Psychological Advantage of Flat Discounts

💡 Customers Think in Absolute Savings, Not Percentages

Imagine offering a 20% discount on a $40 product. Some customers will struggle to calculate the actual savings ($8). But if you say, “Get $8 off,” they immediately perceive the value.

🔍 Flat Discounts Feel More Tangible

“Save $50” sounds more concrete than “Save 25%.” Studies show that customers respond better to fixed-dollar savings, especially on lower-priced products.

📉 Percentage Discounts Can Backfire on High-Value Items

If you sell a $500 product, a 20% discount ($100 off) may feel too aggressive, cutting into margins. Instead, offering “Buy 2 for $800” maintains profitability while encouraging higher cart values.

The Right Flat Discounting Strategies for Shopify Merchants

Here’s how you can implement flat discounts effectively:

1️⃣ Buy X for $Y (Higher AOV & Bigger Sales)

Instead of “Get 10% Off”, offer:

  • Buy 3 Hoodies for $60 (instead of $75 individually)
  • Buy 2 Pairs of Sneakers for $100 (instead of $120)

✅ Why It Works: Encourages bulk purchases while keeping total spend predictable for customers.

2️⃣ Enhanced Buy X Get Y (BOGO++) (Boost Conversions Without Reducing Perceived Value)

Instead of “20% Off”, offer:

  • Buy 2 Jackets, Get 1 Free T-shirt

✅ Why It Works: Customers prefer getting something free over a discount that requires calculation.

3️⃣ Conditional Discounts (Encourage Higher Cart Values)

Instead of “15% Off Storewide”, offer:

  • Get $20 Off on Orders Above $150

✅ Why It Works: Pushes customers to increase their cart size to reach the threshold.

4️⃣ Shipping Discounts (Turn a Cost into a Sales Booster)

Instead of “Get 10% Off”, offer:

  • Free Shipping on Orders Over $300

✅ Why It Works: Customers hate paying for shipping more than getting a small percentage discount.

How to Set Up Flat Discounts in Shopify

Shopify’s default discount system has limitations, making it hard to create flexible discount structures like Buy X for $Y or BOGO++.

📌 Solution:

You can use apps like Endless Discount Options to:

✔ Set up Buy X for $Y offers seamlessly

✔ Offer BOGO++ and tiered discounts

✔ Customize discounts based on cart value, customer type, and location

Final Takeaway – Make Discounts Work for You, Not Against You

Flat discounts are often more effective than percentage-based discounts because they:

✔ Make savings feel tangible

✔ Encourage higher spending

✔ Increase conversions without hurting margins

If you’re still using generic 10% Off coupons, it’s time to rethink your strategy. Smart discounting isn’t just about offering deals—it’s about maximizing revenue.