Discount codes vs sale prices on Shopify: which fits your store?
A Shopify discount code or automatic discount is applied in the cart or at checkout and leaves the product’s price alone. A sale price changes the product’s price, and most themes show the original price with a strikethrough next to it. Use a sale price for an offer meant for every visitor and a discount for an offer meant for a specific group.
If you are looking for a Shopify discount app, check which of the two it does. PriceDip on the Shopify App Store discounts by changing your prices and compare-at prices on a schedule, and reverts them when the sale ends. It does not create discount codes or automatic discounts.
What is the difference?
Section titled “What is the difference?”| Sale price on the product | Shopify discount code or automatic discount | |
|---|---|---|
| Listed product price | Lowered for the sale period | Does not change |
| Where shoppers see the savings | On the product, in most themes as a strikethrough original price | In the cart or at checkout |
| What the shopper does | Nothing | Enters a code, or meets the conditions of an automatic discount |
| Who gets it | Every shopper | Shoppers who have the code or meet the conditions |
| Conditions such as minimum spend or first order | Not possible | Possible |
| Start and end dates | Not built in on most plans. You edit the prices by hand, or an app schedules them. Shopify Plus has Launchpad | Built in |
| What Shopify’s product sync sends to Google | The sale price and the original price. Google decides whether to show a sale | The usual price. A promotion can be published separately |
Shopify calls the strikethrough original price the compare-at price. A product has a sale price when its compare-at price is higher than its price.
Which sells better?
Section titled “Which sells better?”Neither is better in every case, and we have no figures to offer. The differences below are what to weigh.
- A sale price is seen earlier. The lower price and the strikethrough original price show on the product, before the shopper adds anything to the cart. There is no code to find, remember or type.
- A sale price is part of the product data. Google can receive it, though Google decides whether to show a sale. See Can Google show my flash sale price?
- A discount is seen later. The shopper learns the final price in the cart or at checkout, unless a banner or an email told them first.
- A sale price reaches everyone. That includes shoppers who would have paid full price. On those orders the sale does nothing but cost you margin.
- A discount can be aimed. A code for subscribers, or an automatic discount above a minimum spend, gives the lower price only where you want it.
Our advice: for a sale you would announce to every visitor, such as a weekend sale or Black Friday, use a sale price. For an offer to one group, or one meant to change what shoppers do, such as buying more per order, use a discount.
What does each cost you?
Section titled “What does each cost you?”Our advice: work out the margin before you use either. On a $100 product that costs $50 to supply, 20% off cuts the gross profit from $50 to $30. To keep gross profit level you need $50 / $30 = 1.67 times the units, which is 67% more. The arithmetic is the same for a code, except that a code used by fewer shoppers gives away less. See Do discounts increase profit? A worked Shopify example.
Can I use both at the same time?
Section titled “Can I use both at the same time?”You can, and Shopify will apply both. A discount code or automatic discount that applies to a product is applied on top of its sale price.
Our advice: work out the combined price first. A 10% code on a 20% sale price is 28% off. On the $100 product above, gross profit falls from $30 to $22. A subscriber code stacking on a sale may be worth that. An automatic discount for all products stacking on every sale item is usually not what you meant. Exclude sale items from Shopify discount codes shows how to keep a discount on full-price products only.
How do I set each one up?
Section titled “How do I set each one up?”A discount, in Shopify admin: go to Discounts, click Create discount, choose the type, and set what it applies to and its dates. These labels are correct at the time of writing.
A sale price, in Shopify admin: open the product, put the original price in Compare-at price and the lower price in Price. Steps and a picture are in How to show a sale price on Shopify.
A sale price on many products, with a start and end time: this is what PriceDip does. A Flash Sale task changes the price and compare-at price of the products you choose and reverts both when it ends. See How to run a flash sale on Shopify.
What should I watch for with a sale price?
Section titled “What should I watch for with a sale price?”- The strikethrough price must be real. Use a price you actually charged. Rules differ by country: see EU 30-day lowest price rule. This is not legal advice.
- End it on time. A sale price left in place costs margin on every order, $20 a unit in the example above.
- Check your active discounts first. See the stacking section above.
Frequently asked questions
Section titled “Frequently asked questions”What is the difference between a discount code and a sale price on Shopify?
Section titled “What is the difference between a discount code and a sale price on Shopify?”A discount code is applied in the cart or at checkout and does not change the product’s price. A sale price lowers the product’s price itself, and most themes show the original price with a strikethrough next to it on the product.
Does PriceDip create discount codes?
Section titled “Does PriceDip create discount codes?”PriceDip does not create discount codes or automatic discounts. It changes product prices and compare-at prices on a schedule and reverts them when the sale ends.
Do discount codes work on products that are on sale?
Section titled “Do discount codes work on products that are on sale?”A Shopify discount code that applies to a product is applied on top of its sale price, so a shopper gets both. To prevent that, limit the discount to a collection of products that have no compare-at price.
Should I use an automatic discount or a sale price for a storewide sale?
Section titled “Should I use an automatic discount or a sale price for a storewide sale?”For a sale meant for every visitor, a sale price shows the savings on every product before the cart. An automatic discount shows them in the cart or at checkout. Choose an automatic discount when the sale has a condition, such as a minimum spend.