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AOV & usage of tiered discounts Checkout Beauty / Fragrance

Tiered Discounts via Shopify Functions

Multi-tier 'spend X / save Y%' discounts encouraging higher cart values through progressive rewards.

Shopify cart with a spend-based tiered discount applied: orders over $50 get 20% off, shown above the estimated total

The Problem

The store only had straightforward discount options available. There was no flexible "spend more, save more" experience that clearly rewarded customers for reaching higher cart values, which made it harder to incentivize bigger baskets in a structured, predictable way.

The Solution

We implemented multi-tier "spend X / save Y%" discounts using Shopify Functions and a Discount UI Extension. Customers are offered better discounts as their cart value increases, with the tiers configured directly in Shopify Admin. The logic works for both automatic discounts and promo codes, so the marketing team has the flexibility to apply it across different campaigns.

Why It Mattered

The tiered structure encouraged customers to increase their cart value to reach the next discount level. That supported higher average order values while keeping the discount rules consistent and predictable for shoppers, so they always understand exactly what they'll save at each threshold.

Technical Details

Built using Shopify Functions (Discount Function) and a Discount UI Extension in a custom app. Tier thresholds and percentages are stored in shop metafields and managed via the Shopify Discounts UI, and the discount engine applies the correct tier based on the customer's cart value at checkout.

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