Features
Automatic vs code-based discounts
When to use an automatic discount and when to require a customer code.
Every rule can run as either an automatic discount or a code-based discount. Pick the right one based on how you want customers to redeem.
Automatic
The discount applies to every eligible cart without the customer doing anything.
When to use
- Sitewide sales (Black Friday, end-of-season)
- Tiered or quantity-based promotions ("buy 3 get 1 free")
- Pricing promotions you want all customers to see (more transparent)
- Triggered campaigns where you don't want a code-entry friction step
Pros
- Highest conversion (no entry friction)
- Visible savings on the product/cart page
- Customer doesn't have to know a code exists
Cons
- Anyone can get it (you can still restrict by customer eligibility)
- Harder to attribute to a specific marketing channel
Code-based
The customer must enter a discount code at checkout for the rule to apply.
When to use
- Targeted promotions for email/SMS lists
- Influencer or affiliate codes (track redemptions per code)
- Refund/goodwill codes for specific customers
- Promotions where you want some friction to deter casual use
Pros
- Trackable per code (good for marketing attribution)
- Discount only applies to people who got the code (more controlled)
- Can issue many unique codes for different audiences
Cons
- Lower redemption rate (customers forget or don't enter codes)
- Some customers will Google for codes and find them
- Extra friction at checkout
Switching modes
You set this when creating a rule (Automatic or Code-based). To change later, edit the rule and toggle the method. If you switch to code-based, you'll need to set the code value.
Multiple codes for the same rule
Each rule has one code. To run the same offer with different codes (for tracking different channels), create one rule per code.
If you need a lot of unique codes (e.g. for an influencer campaign), use Shopify's bulk discount code generation on the rule's underlying Shopify discount, or contact us — bulk-code generation is on the roadmap.
Combining automatic and code-based at the same time
A customer's cart can have both automatic and code-based discounts apply simultaneously, if both rules permit combination. See Discount combinations for how to configure stacking.