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Set up Buy-One-Get-One (BOGO) discounts to incentivize the customers to purchase a product and to empty the inventory

Shopify made it easy to create and configure BOGO discounts. These deals can be highly profitable as shoppers like them a lot. They can help you convince your customers to try a new product or allow for the profitable liquidation of low-quality inventory.

What is the process?

Create your Buy X Get Y discounts in your Shopify admin.
Promote your bundle offer on the product page and let your visitors know how much they will save.
Monitor their performance in your sales by discount reporting page.

Why should you care?

BOGO discounts incentivize a customer to buy a given quantity of a product to get the same one for free (it can also be another product). The good news is that with Shopify, you can customize BOGO discounts in a myriad of ways.

Shoppers like these deals because they seem to offer a second product at no extra cost. The magic is that it makes them feel like they got it for free. Even though, on the paper, this may not always be true.

By rewarding your customers for buying more on your site, you can increase your average order value (AOV). By improving this metric, you can become profitable when acquiring people on ad networks for more expensive keywords.

BOGO discounts may be of great help to move unwanted inventory quicker and in a profitable way. You can even justify it under the guise of “doing something nice” for loyal consumers.

BOGO discounts can help you incentivize your customers to try a new product they may not have purchased otherwise.


What tools will you need?

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How to execute this experiment?

1

Read the official documentation below to learn how to create a Buy X get Y discount in your admin panel.

2

As you have noticed, you can customize BOGO discounts in a myriad of ways with Shopify. Whether you want to define the minimum quantity of items to be bought or the minimum purchase amount for a BOGO discount to be eligible, you can do in one click. You can also set the discounted value as a percentage or kept it as “free” (i.e. the selected products will be purchased at no extra cost).

3

You can choose what makes a customer eligible and set the coupon to be only available to a specific group of persons. The limit of use can also be restricted (number of times this discount can be used in total among all customers and how many times the same customer can use it).

4

If your coupon is only valid for a given time (like Black Friday or a seasonal period), make sure to specify an end date. Otherwise, your voucher will never expire.

5

Once your coupon is submitted, you will get a green banner, including the Get Shareable link button. These links will bring buyers right to the product page and will automatically apply the discount at checkout. It is a great way to promote your coupons on your social networks.

6

You can use an application like Bold Bundles to display the BOGO discount on your product page. Customers will be able to look at the offer and add it to their cart in one click.


How should you track?

You can assess how often a coupon is being used by heading to the analytics section and clicking on reports. You will find the "sales by discount" link that will allow you to view the performance for each discount code, such as the gross sales, the returns, the net sales, and more.


Key learnings.

If you are looking to automatically apply a coupon at checkout (even for customers who did not know about it), create an automatic discount instead.

We have seen one fashion e-commerce increase the cart size of their customers, and liquidating its old inventory with the following tactic: spend over £100 on clothing, choose a free item from a specific collection.

Use BOGO discounts too much, and you may decrease the value perceived by your customers for your products.

There is a limit of 20,000,000 unique discount codes for each store.

Your customers can redeem discounts codes in your online store, or in-person if you're using Shopify POS. But unfortunately, it does not work for Buy X get Y promotions.


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