How to set up Shopify Discounts that actually work in 2025

The best discounts aren’t just about offering the lowest price; they’re about understanding what your audience values and working your discounting strategy around that. The Indian audience is a price conscious one. They tend to take an extra step to find the best deal they possibly can before making any purchase. So discounts end up being a differentiating factor when it comes to standing out amongst other brands. In other words, creating unique discounting strategies allows brands to do more to stand out, while also keeping the burn at a minimum.  

This guide explains proven discount strategies and shows you how to improve your offers using Shopflo’s discount engine.

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Discounts that are proven to work

When done right, discounts can help you increase average order value (AOV), tackle cart abandonment, and enhance customer lifetime value.

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Here are some discount strategies that have proven to work for Shopify stores in India:

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1. Percentage-Based Discounts

Percentage-based discounts are one of the most commonly used discounts. They work particularly well with large-ticket items like fashion, electronics, or home goods. 

Nike often runs seasonal sales, offering 20%-30% off on their products. They also have email promotions for existing customers, offering discounts on select products. This gives customers a sense of getting a significant deal without eroding profit margins too much.

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2. Buy One, Get One (BOGO)

The "Buy One, Get One" deal is an absolute favorite in India, especially in the beauty, wellness, and fashion categories. It’s simple but effective. It incentivizes customers to purchase more by offering a free or discounted product with their purchase.

Myntra frequently offers Buy One, Get One 50% Off promotions on fashion items such as clothing, accessories, and footwear. This discount encourages customers to purchase more than one item, raising their AOV.

3. Bundle Discounts

Bundling is all about creating the illusion of getting more for less. This strategy works well when products complement each other. Consider skincare sets, matching accessories, or tech gadgets.

For example, brands often offer a special price on bundled shampoo, conditioner, and hair masks. This not only gives the customer more for their money but also encourages them to buy more items than they originally planned. It’s a win-win!

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4. First-Time Purchase Discounts

Offering discounts to first-time buyers is a tried-and-true method for converting potential customers into actual buyers. This is especially effective when you target customers who are browsing or have shown interest in your products but haven’t yet made a purchase. The "First-time Purchase" discount typically works best when you offer a 10-20% discount on their first order or a fixed-value discount, such as ₹200 off their first purchase.

Swiggy often discounts your first order or offers free delivery on the first purchase for new users. This encourages new users to try the platform, and discounts make converting potential customers into regular users easier.

5. Flash Sales 

Flash sales are all about speed and savings! These lightning-fast deals offer huge discounts for a limited time, sparking FOMO in customers. Retailers create a buzz, turning everyday shopping into a thrilling race against the clock. Flash sales are designed to grab attention and get shoppers rushing to grab their favorite products before the clock runs out. This also allows brands to introduce and test new discounting strategies on a smaller scale while also keeping their burn rates at a minimum. 

Amazon frequently runs Flash Sales during events like Prime Day or Black Friday, where products are offered at discounted prices for a short time. These sales create urgency, driving customers to make quick decisions.

6. Loyalty Discounts

Loyalty discounts are an excellent way to nurture long-term relationships with your customers. Offering discounts based on the frequency of purchases or the total amount spent encourages customers to keep coming back. For example, if customers reach a specific purchase threshold, they might receive a discount on their next order. To keep your brand top of mind, you can create a points-based system or offer personalized discounts.

Sephora runs a Beauty Insider Program with tiered loyalty discounts. Customers move up through different levels based on their annual spending. As they progress, they unlock better rewards, including exclusive discounts. Sephora often offers its top-tier members early access to sales, birthday gifts, and free shipping. These special perks and exclusivity make customers feel valued, improving retention.

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Improve your Discount Strategy with Shopflo’s Complex Discounting Agent

While traditional discounts like percentage-off or BOGO deals are effective, many Shopify store owners in India want to add more flexibility and precision to their discounting approach. That’s where tools like Shopflo come into play. 

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Using Shopflo’s Discount Engine, you can easily create complex discounting strategies that fit your brand’s unique needs.

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Here’s how Shopflo’s complex discounting capabilities can work wonders for your Shopify store:

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1. Create Segmented Discounts

Gone are the days of manually entering discount codes. Automatically apply discounts based on customer behaviors and characteristics—making your discounts more innovative and personalized.

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Customer Segmentation

Offer discounts to repeat customers or those who have previously abandoned their carts, nudging them to complete their purchases. 

Cart Value Triggers

Set discounts to trigger when a customer’s cart exceeds a specific value, like offering ₹500 off on orders above ₹5,000. This tactic encourages shoppers to add more to their cart, boosting your AOV.

Product Category-Based Discounts

You can also offer discounts based on product categories. If a customer buys a shampoo and conditioner, you could automatically apply a 10% discount to all hair treatment products in their cart—perfect for cross-selling.

For instance, a customer with a cart full of home decor items might automatically receive a discount on dinnerware, encouraging them to complete their purchase while exploring related products.

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2. Customize Discount Rules to Minimize Burn

Shopflo takes customization to a whole new level. It lets you create discount rules that are far more flexible than what Shopify’s default discount engine can handle.

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Tiered Discounts

Offering progressive discounts based on cart value? No problem. Whether a customer spends ₹1,000 or ₹5,000, you can set up tiered discounts that reward higher spending with bigger savings.

Product Collection Discounts

Need to offer a discount on specific collections or even individual products? Shopflo lets you apply discounts to certain collections so you can run a targeted campaign without impacting the entire store.

Exclusive Member Discounts

If you’ve got a loyalty program or exclusive member access, Shopflo can offer special discounts for those users. It’s an ideal way to reward your most loyal customers.

Suppose you own a store selling organic beauty products. In that case, Shopflo allows you to set up a promotion where customers get 20% off all organic skincare products when they buy a facial serum and moisturizer together. You can even create exclusive discounts for VIP customers or members.

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3. Monitor. Analyze. Optimize

One of Shopflo’s most significant advantages is its ability to provide real-time data analytics on how your discount campaigns are performing. Instead of guessing which discounts are working, you can track important metrics like:

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Cart Abandonment Rates: 

See if a particular discount is helping reduce cart abandonment or if it’s causing customers to drop off at checkout.

Conversion Rates: 

Track how many people who view your discounts actually go on to make a purchase, giving you a clear picture of which strategies are converting the best.

Return on Ad Spend (ROAS): 

Use this data to see if your discounting efforts are paying off when paired with ads, and adjust your approach accordingly.

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4. Continuously Improve and Experiment

With Shopflo’s Shopify integration, you gain complete control over your discounting strategy through the Shopflo dashboard. You can easily create, manage, and track discounts all in one place. This level of customization allows you to:

• Choose which discount types (percentage or fixed amount) you want to offer
• Set expiration dates for discounts to create urgency
• Create discount rules for specific products, categories, or customer groups
• Test different discount strategies to find the most effective one

With data at your fingertips, you can continuously refine your discounting strategy to maximize its impact on sales and customer behavior.

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How to Refine Your Discounting Strategy

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1. Analyzing Discount Performance

The first step in refining your discounting strategy is to analyze the data. What discounts are leading to higher conversions? Which ones result in cart abandonment? Are your first-time purchase discounts leading to repeat buyers?

Shopflo’s built-in analytics dashboard allows you to track all of these metrics in real-time, allowing you to see which discount types are most effective for your business. For instance, you can measure:

• Conversion Rates: Track how many customers use your discount codes compared to how many visit your store.
• Average Order Value (AOV): See if your discounts lead to larger orders.
• Prepaid share
• Abandoned carts recovered

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2. A/B Testing to Optimize Discounts

A/B testing is a great way to experiment with different discount strategies. For instance, you can try testing:

• A percentage discount vs. a fixed value discount to see which resonates more with your customers.
• A time-limited discount vs. a quantity-based discount to assess which type drives more sales.

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3. Customer Segmentation

Not all customers are the same, so why should they receive the same discount? Customer segmentation allows you to offer personalized discounts to different buyer personas.

1. First-time Buyers: Offer a 10% discount on their first purchase to encourage them to make a decision.
2. Repeat Customers: Offer a loyalty discount (e.g., 15% off) to customers who have made over three purchases in the past six months.
3. Cart Abandoners: Use automated email campaigns offering a small discount to those who abandoned their carts without purchasing.

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By segmenting your audience, you ensure that you’re offering the right discount to the right people, which increases the likelihood of conversion.

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Indian Brands That Have Seen Results with Shopify Discounts

Let’s examine how two brands, Rawrx and Vilvah, used data-driven insights to optimize their discounting strategies.

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Rawrx - product specific discount 

Rawrx, a health and wellness brand, analyzed which product categories received the most engagement during discount campaigns. After several tests, they discovered that protein supplements saw the most significant lift in sales when paired with a 20% discount. They increased profitability by focusing their discount efforts on high-margin products and boosting sales. 

Rawrx saw increased sales by implementing product-specific discounts. Customers responded well to discounts on trending products.

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Vilvah - segmented discount

Vilvah was able to successfully segment their audiences, showing exclusive discounts for new, and returning customers. Giving both a personalized experience. This lead to a 38% increase in revenue.

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Set up Better Shopify Discounts Today

Discounting can be a powerful strategy for increasing sales, but only when done correctly. By understanding the types of discounts that resonate with Indian consumers, using the right tools like Shopflo’s complex discounting engine, and refining your approach with data, you can maximize your sales without sacrificing profitability. 

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Experiment with different discount types, segment your audience and track the results. The more data you gather, the more effective your discount strategies will be.

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Ready to take your discounting strategy to the next level? Sign up for a free trial and access advanced discounting features today!

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