Types of Discounts in Marketing; Describe Types of Discount

The main types of discounts in marketing are general (percentage or fixed amount off), quantity, minimum purchase, trade, cash, bundle, flash, BOGO, free shipping and seasonal discounts. They differ in who gets the discount, what the buyer has to do for it, and how long it lasts. The first ones on the list are for shoppers on a storefront; trade and cash discounts are for business buyers.

What is a discount?

A discount is a reduction in the price a buyer pays. It can be a percentage, a fixed amount, a lower price per item for buying more, or something extra for free. Coca-Cola is widely credited with one of the first coupons: from 1887 or 1888 (sources differ) it handed out tickets for a free glass to get people to try a drink few had heard of.

A discount costs margin every time it is used, so each type below comes with a trade-off.

What is a general or simple discount?

A percentage or fixed amount off, open to everyone, such as 20% off a collection or $10 off a product. It is the simplest type and the one stores use most. Percentages dominate across discount types too: of all campaigns stores have created in Discounty, 81% take a percentage off rather than a fixed amount or a new price.

Good for: seasonal sales, store anniversaries, clearing a collection. Watch for: it gives the same saving to shoppers who would have bought anyway.

In Discounty, this is a Bulk price editor campaign.

What is a quantity or volume discount?

A lower price per item the more the shopper buys: 10% off two, 20% off three. It rewards a bigger order rather than giving the saving to everyone.

Good for: consumables, accessories, anything people buy more than one of. See what is a quantity discount. Watch for: a lower margin per unit, so set the tiers against your costs.

In Discounty, this is a Quantity discount campaign, with a tier table on the product page. More than one tier needs the Essential plan or above.

What is a minimum purchase discount?

A discount that applies once the order reaches a set amount, such as 10% off orders over $50. It asks for a bigger basket in return.

Good for: raising the average order. Set the threshold a little above what shoppers already spend. Watch for: a threshold set too high, which few shoppers reach.

In Discounty, this is a Cart goal campaign. See minimum value discounts on Shopify.

What is a trade discount?

A reduction off list price that a manufacturer or wholesaler gives a business buyer, such as a retailer, often larger for larger orders. On a $1,000 order at 15% trade discount, the buyer pays $850. It is not recorded in the accounts; the sale is booked at the net price.

Good for: selling to resellers. Watch for: a trade price that leaves you little margin on large orders.

See trade discount vs cash discount for the full comparison.

What is a cash discount?

A reduction for paying an invoice early. "2/10, net 30" means 2% off if the buyer pays within 10 days, and the full amount due in 30.

Good for: getting paid sooner on invoices. Watch for: the cost. 2% for paying 20 days early works out at roughly 37% a year on the money.

Cash discounts live in your invoice terms, not in a storefront discount app.

What is a bundle discount?

A lower price for a set of products bought together than for the same items bought separately, such as a cleanser, toner and moisturiser at one price.

Good for: moving items that sell less well alone, by pairing them with ones that sell. Watch for: a bundle no one wanted; build it from items customers already buy together.

Discounty has no bundle campaign type. See what is a bundle discount for the options.

What is a flash discount?

A deep discount for a short time, often a day or less, and often announced by email or text. The deadline does the work, so it has to be real.

Good for: a burst of sales, clearing overstock. Watch for: running them so often that shoppers wait for the next one. See what is a flash sale.

In Discounty, the Flash sale with countdown timer template sets one up as a Bulk price editor campaign; the countdown is on the Essential plan and up.

What is a BOGO discount?

Buy one, get one: the second item free or at a reduced price. It moves more units per order.

Good for: introducing a product, moving stock. Watch for: the cost of the free item, and stock running out if it works.

In Discounty, this is a Buy X get Y campaign, on the Lite plan and up. See what is a BOGO discount.

What is a free shipping discount?

Free shipping on every order, above a minimum, for a limited time, or for members. It removes a cost shoppers often object to at checkout: in the Baymard Institute's survey, extra costs such as shipping are the top reason US shoppers abandon a checkout.

Good for: most stores, set above the average order. Watch for: shipping cost on small orders; see how to make free shipping profitable.

In Discounty, this is a Shipping discount campaign, on the Lite plan and up.

What is a seasonal discount?

A discount tied to a time of year: Black Friday, the end of a season, a holiday. Shoppers expect them, which makes them easy to announce and crowded. See seasonal discounts.

Which type of discount should you use?

To undo a Discounty campaign, deactivate it. It shows as Reverting while Discounty removes the discount and restores the original settings.

How we counted

The percentage share is the proportion of all campaigns Shopify stores have created in Discounty that take a percentage off, read from our own records in October 2026. It is a share across campaigns; no single store can be identified from it.

Questions

What are the types of discount?

Ten common types: general (percentage or fixed amount off), quantity, minimum purchase, trade, cash, bundle, flash, BOGO, free shipping and seasonal discounts.

What is the most common type of discount?

A general percentage-off sale. Across campaigns in Discounty, 81% take a percentage off rather than a fixed amount or a new price.

What is the difference between a discount and a promotion?

A discount changes the price. A promotion is the campaign around it, such as a season, a launch or an event, and may use a discount, free shipping or a gift. See promotion vs discount vs offer.

Can two discounts apply to the same item?

Only if both are set to combine. Shopify keeps product, order and shipping discounts separate, and stacking two product discounts on the same item needs Shopify Plus.

Can discounts damage a brand?

Used too often, yes. Shoppers who always see a sale learn that the full price is not real and wait for the next one.