Discounts Overview

Discounts let you offer products at reduced prices or free shipping to incentivize your customers. With product discounts, you can put individual products and variants on sale, or entire categories and collections.

You can create discounts that require a promo code or apply discounts automatically based on eligibility criteria.

When an order is eligible for a discount, it is applied to product prices before tax. The discount reduces the price of the product, and tax is then calculated on the discounted price.

Types of discounts

• To automatically apply discounts to eligible orders, create a sale
• To require customers to enter a promo code at checkout, create a voucher

Discount minimum requirements

Both sales and vouchers can have minimum order requirements to qualify for the discount.

You can choose a minimum order value or quantity of products that customers must reach before the discount can be applied, or you can choose to make the discount open to all orders with no minimum.

Discount active dates

Both sale and voucher discounts have flexible durations and can be turned on or off as needed with the active date settings.

note

To preserve a record of the original discount, only restart an old discount if the original details remain the same. For example, the same discount type, the same products with the same minimum requirements. If you must change the discount parameters, create a new sale or voucher.

Dates and times follow the timezone settings of your marketplace. For example, if your marketplace timezone is GMT-04:00 Eastern Time and you set a start date of August 31, then the discount will be effective on 12:00 am ET on August 31.

How discounts are distributed

When a fixed-amount discount applies to multiple products in an order, the discount is applied proportionally across each order line item. For example, if a $30 fixed-amount voucher applies to an order with a $50 item, a $30 item, and a $20 item, the discounted prices would then be $35 (–$15), $21 (–$9), and $14 (–$6), respectively.

If you remove or refund one of these items from the order, the remaining items will retain their proportionate discount amounts. This ensures a fair and consistent discount, regardless of changes to the order.

Who pays for discounts

The marketplace is responsible for absorbing the cost of any discounts. Sellers receive their share of the original product price in their payout. The discount is deducted from the marketplace operator's revenue.

Let's break down an example:

• Discount scenario: A customer orders a product priced at $100. A 10% discount is applied, resulting in a $10 price reduction. The customer pays $90 ($100 - $10 discount).
• Seller agreement: The marketplace has an agreement with the seller to charge a 15% commission on sales.
• Seller earnings: The seller earns $85 ($100 – $15 commission), which will be included in their next payout.
• Marketplace earnings:
  • With the marketplace's 15% commission on a $100 product, they would normally earn $15.
  • The marketplace covers the $10 discount, reducing their revenue.
  • The marketplace earns $5 for this order ($15 commission - $10 discount).