When setting up discount campaigns, it's essential to understand the specific rules governing the order in which discounts are applied. This article will detail the discount activation rules, guide you through the relevant setup process, and provide various discount examples to help you understand the correct discount calculation logic.
By thoroughly reading this article, you'll be better equipped to optimize your discount settings and maximize your marketing effectiveness.
Note: This feature is now available for stores that have opted into the discount strategy. If your store hasn't activated it yet and you're interested, please contact us. |
In This Article
- Discount Activation Rules
- Setting the Activation Order of Discounts
- Examples of Stacked Discount Calculations
- Frequently Asked Questions
Discount Activation Rules
This section explains the discount activation rules for applicable campaigns.
Priority of Discount Categories
The activation order of discount categories is predetermined and cannot be customized. Discounts are applied in the following priority:
- Product Discounts: All discounts related to specific products are calculated first.
- Order Discounts: Next, discounts related to the entire order are calculated.
- Shipping Discounts: Finally, discounts related to shipping costs are calculated.
This means that all product discounts must be applied before any order discounts are considered. Similarly, order discounts are applied before shipping discounts.
Priority within the Same Discount Category
Within the same discount category (product, order, or shipping), you can prioritize either automatic discounts or discount codes.
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If automatic discounts are prioritized over discount codes, the calculation order would be:
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If discount codes are prioritized over automatic discounts, the calculation order would be:
Discount Stacking Rules
When multiple discounts apply to the same order, each discount will be checked to see if it can be stacked with the previous discounts. If a discount is set not to be combined with other discounts, neither that discount nor any subsequent discounts will be applied.
Setting the Activation Order of Discounts
In the Discounts settings, you can customize the calculation order of automatic discounts and discount codes. This setting allows you to set the priority for applying discounts within the same category (product, order, or shipping).
Steps to Set Up
- In your admin panel, go to Discounts and click Other actions > Set priority of discount category.
- Choose the desired activation order: Prioritize automatic discounts, then discount codes or Prioritize discount codes, then automatic discounts.
- Click Update to Save the Changes.
Calculation Rules
The system will calculate either the discount code or the automatic discount first based on your settings, then determine if the current campaign can be stacked with the next one:
- If stacking is allowed: The system will continue to calculate the next type of discount based on the current discount amount.
- If stacking is not allowed: Only the current discount will be calculated, and other discounts will not be applied.
Adjusting the calculation order of discount types can impact the discount amount and, consequently, the final discounted price.
Note: Changes to the discount type order will only apply to newly created orders; existing orders will continue to follow their original calculation rules. |
For example, if you set an automatic discount of "$10 off for every $20 spent" on product A (priced at $100) and a 15% off discount code for all products, and you enable stackable promotions, the calculations would be as follows:
Discount Priority | Calculation of Product A's Discounted Price |
Discount Code First |
The discount code reduces the price by $15 (15%), bringing it to $85. Then, the automatic discount reduces the price by $10, resulting in a final price of $75. |
Automatic Discount First |
The automatic discount reduces the price by $10, bringing it to $90. Then, the discount code reduces the price by $13.5 (15%), resulting in a final price of $76.5. |
Display Position and Order
When multiple discounts are applied, their display positions in the cart and checkout pages are as follows:
- Product Discounts: Displayed in the product row.
- Order and Shipping Discounts: Displayed below the order subtotal.
Within the same category (product, order, or shipping), discounts will be displayed according to the activation order you have configured.
For example, if you have set the activation order as Prioritize automatic discounts, then discount codes, then in the cart, when a product qualifies for both an automatic discount and a discount code, the automatic discount's name and amount will be displayed first, followed by the discount code's name and amount.
Examples of Stacked Discount Calculations
This section provides example scenarios for stacking and calculating multiple discounts. All examples use the following item settings:
Item | Product A | Product B | Product C | Shipping Fee |
Original Price | $50 | $100 | $200 | $20 |
Scenario 1: Multiple Product-Based Automatic Discounts
A merchant has configured the following discounts: A 10% automatic discount for Product A, a $20 automatic discount for Product B, and a 30% automatic discount for a specific product category, which includes Products A, B, and C.
Note: The priority of product-based discounts is as follows: Specific product discount > Specific category discount > Storewide discount. Only one automatic discount is allowed per product. |
Calculation:
Item | Original Price | Discount Calculation | Discounted Price |
Product A | $50 | 10% off, -$5 | $45 |
Product B | $100 | $20 off, -$20 | $80 |
Product C | $200 | 30% off, -$60 | $140 |
Subtotal | $350 | $265 | |
Shipping | $20 | $20 | |
Total | $370 | $285 |
Scenario 2: Multiple Product Discounts and a Free Shipping Discount
A merchant has configured the following discounts: A 10% discount code for Product A, a $20 automatic discount for Product B, and a free shipping discount for orders over $200.
Calculation:
Item | Original Price | Discount Calculation | Discounted Price |
Product A | $50 | 10% off, -$5 | $45 |
Product B | $100 | $20 off, -$20 | $80 |
Product C | $200 | $200 | |
Subtotal | $350 | $325 | |
Shipping | $20 | Free shipping over $200, -$20 | $0 |
Total | $370 | $325 |
Scenario 3: Multiple Discount Codes and Automatic Discounts for Products
A merchant has configured the following discount settings: A 10% discount code for Product A, a $20 automatic discount for Product B, and a 20% discount code for Category A, which includes Products A and B. Discounts can be stacked, with discount codes calculated first, followed by automatic discounts.
Notes: You can set up to 5 discount codes for a single order. The activation sequence of the discount codes follows the sequence entered by the user. |
Calculation:
Item | Original Price | Discount Calculation | Discounted Price |
Product A | $50 | 10% off → 20% off, -$14 | $36 |
Product B | $100 | 20% off → $20 off, -$40 | $60 |
Product C | $200 | $200 | |
Subtotal | $350 | $296 | |
Shipping | $20 | $20 | |
Total | $370 | $316 |
Scenario 4: Multiple Order Discounts
A merchant has configured the following discounts: A 10% order discount code and a 20% automatic order discount. Discounts can be stacked, with discount codes calculated first, followed by automatic discounts.
Note: One automatic discount can only be applied per product, but different products can have different automatic discounts, so multiple automatic discounts may apply to a single order. |
Calculation:
Item | Original Price | Discount Calculation | Discounted Price |
Product A | $50 | 10% off → 20% off, -$14 | $36 |
Product B | $100 | 10% off → 20% off, -$28 | $72 |
Product C | $200 | 10% off → 20% off, -$56 | $144 |
Subtotal | $350 | $252 | |
Shipping | $20 | $20 | |
Total | $370 | $272 |
Scenario 5: Combination of Multiple Types of Discounts
A merchant has configured the following discount settings: A 10% discount code for Product A, a $20 automatic discount for Product B, a 50% automatic order discount, and a free shipping discount for orders over $200. Discounts can be stacked, with discount codes calculated first, followed by automatic discounts.
Note: The free shipping discount can be combined with other automatic discounts. If one product in the order qualifies for free shipping, the entire order will receive free shipping. |
Calculation:
Item | Original Price | Discount Calculation | Discounted Price |
Product A | $50 | 10% off → 50% off, -$27.5 | $22.5 |
Product B | $100 | $20 off, -$20 | $80 |
Product C | $200 | 50% off, -$100 | $100 |
Subtotal | $350 | $202.5 | |
Shipping | $20 | Free shipping over $200, -$20 | $0 |
Total | $370 | $202.5 |
Frequently Asked Questions
Q1: How many automatic discounts can be applied to a single product?
A1: A single product can only be part of one automatic discount. If the product is configured for multiple automatic discounts, such as for specific SKUs, specific products, specific categories, orders, or shipping, the discounts will be applied in the following priority order: Specific SKU > Specific Product > Specific Category > Order > Shipping.
Q2: How are multiple discount codes applied?
A2: If a product is eligible for multiple discount code promotions, such as for specific SKUs, specific products, specific categories, orders, or shipping, the discount codes will be applied according to the following priority order: Specific SKU > Specific Product > Specific Category > Order > Shipping.
Within the same priority level (e.g., multiple discount codes for specific SKUs), the codes will be applied in the order they are entered by the user.
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