In this guide, we'll walk you through the different types of discounts available on Loop, how to configure them, and how they interact with Shopify’s discount system. Whether you’re offering standard incentives or building personalised retention flows, this article has everything you need.
Understanding discounts
Any reduction from the usual cost of a product can be called a discount. Let’s illustrate this with an example where Product A costs 100$ and is offered at a 10% discount. This directly translates to the final price which would come out to be 90$.
Product A - 100$ Discount - 10%
Total Price = 100$ - 10% of 100$ => 90$
There are several different ways of offering discounts on Shopify and Loop. This article will shine a light on all the different ways of configuring discounts in Shopify as well as on Loop
Discount hierarchy
There is a certain hierarchy to discounts and how it applies to the product base price set on Shopify. You can consider the discounts configured in Loop as the base price of the product when purchased as a subscription. Any discount configured in Shopify that applies to Subscriptions will stack on top of the existing discount applied on the selling plan.
For example, if a product is priced at $100 on Shopify and a 10% selling plan discount is applied, the subscription price becomes $90. If the subscriber then applies a 10% discount code during checkout, the final price is further reduced to $81.
This stacking behaviour means Shopify discount codes apply on top of the discounted subscription price set by Loop.
Types of discounts
Discounts available to subscribers can be broadly categorised into two types: Loop Discounts and Shopify Discounts. Each serves a different purpose and can be combined to maximise value for both brands and subscribers.
Discounts in Loop
Loop offers a range of built-in discounting tools designed to drive subscription adoption, boost retention, and increase customer engagement. These discounts can be configured directly within the Loop app and tailored to suit different business goals.
With Loop, you can create compelling offers for subscribers using various features and settings, allowing you to build personalised journeys and incentivise long-term commitment.
Standard discounts
Different types of discounts can be applied to a Standard Discount. A standard discount is a single discount that is applied on top of the products that are mapped to the selling plan.You can configure this discount by going to Loop App > Acquire > Selling plans.
Tiered discounts
Tiered discounts allow you to adjust the discount offered to a subscriber based on the number of subscription orders completed. This is especially useful when you want to offer a higher discount upfront to drive acquisition, and then reduce or modify the discount after the first few orders.
For example, you might offer a $20 discount on the first order, and then reduce it to $10 from the second order onward.Loop provides multiple ways to configure tiered discounts, depending on your desired setup and can be implemented using below given methods.
Standard selling plan settings: Apply a basic tiered discount directly within a selling plan.
Loop flows: Create custom journeys that adjust discounts dynamically based on order milestones.
Cancellation flows: Trigger discount changes to retain customers at risk of churn.
Admin portal overrides: Manually adjust discounts for specific subscriptions if needed.
Note: The standard discount and the tiered discount can be configured independently, allowing you to apply different discount types or values.
Free shipping discount
Many customers prefer going for subscriptions because brands offer Free Shipping as an incentive to drive subscription adoption. You can configure Subscription specific shipping profiles to offer Free Shipping for certain selling plans.
Once configured, Free Shipping is automatically applied to eligible products that are mapped to selling plans associated with the designated shipping profile in Loop’s subscription-specific shipping settings.
Unique subscription journey discounts
Sometimes, brands want to create unique discount journeys, such as offering 10% off after 3 orders, 20% off after 6 orders, and so on. This can be achieved using Loop Flows, which allows you to automate and customise discount progression throughout a subscriber’s lifecycle.
Learn more about Loop flows .here
Discounts on Shopify
Shopify offers additional discount types that can be applied on top of Loop’s subscription discounts, allowing you to stack savings and further incentivise purchases.
However, it’s important to note that these discounts must be manually entered by the customer, either during checkout or through the Loop Customer Portal.
Shopify currently supports the following discount types for subscriptions:
Amount off products
Amount off orders
Free shipping
Learn more: Shopify discounts
Note: Shopify is responsible for the validation of discount codes, whether they are applied to subscriptions or one-time purchases. If you feel as though a discount code should not have applied to an order, please reach out to Shopify support.
Shopify discounts limitations
When using Shopify's discount codes with subscriptions, please note the following limitations:
Only one Shopify discount code can be applied at a time.
If a discount code is limited to a set number of recurring payments, it applies for that number of payments and is then removed. But if a subscriber adds the same code again from customer portal after it expires, it applies again and stays valid for the same set number of payments.
If you raise the recurring payment limit on a discount, for example from 2 to 4, the new limit takes effect only when the subscriber reapplies the code from customer portal. On reapplication, the counter restarts and the subscriber becomes eligible for the full new number of discounted payments. A subscriber who already received 2 discounted payments and then reapplies the code after the limit is raised to 4 receives 4 more, for 6 in total.
If a discount code is limited to the first payment only, it applies at checkout and is then removed. But if a subscriber adds the same code again from customer portal, the upcoming order becomes eligible for that discount. With an automatic discount, the system removes it automatically after checkout and there is no reapplication possible
Changes to a discount's settings do not apply to subscribers who have already redeemed it. Existing subscribers continue to follow the discount configuration that was active at their original checkout.
If a discount has a minimum purchase amount, the threshold is checked only at checkout. If the subscription is later edited so its value drops below the minimum, the discount still applies to upcoming orders.
At checkout, the recurring subscription price shown does not displays the Shopify discounted price. It shows only the discounted price configured on the Loop selling plan.
To avoid these behaviors, we recommend configuring discounts from your Loop selling plan instead of relying on Shopify discounts. Loop applies and enforces selling plan discounts directly on the subscription, so the discount follows your configuration across recurring orders without depending on Shopify's checkout-time validation.
Compatibility with other discount apps
Loop supports Shopify’s native discount codes. However, compatibility with third-party discount apps may vary. We recommend testing or contacting support before using them in a live store.
Automatic Discounts from Shopify applies from checkout but can't be applied via customer portal
FAQs
The subscription had a discount but it got removed.
The subscription had a discount but it got removed.
Kindly check the activity logs to find out if the discount was correctly applied and got removed after the order got processed. If this is correct, there is a good chance that the discount configuration in Shopify > Discounts is setup for one-time usage.
Why did the Shopify discount (Buy 2 Get 1 Free) not work in Loop subscription?
Why did the Shopify discount (Buy 2 Get 1 Free) not work in Loop subscription?
The reason why the "Buy 2 Get 1 Free" offer doesn't work with Loop subscriptions is that Shopify currently doesn’t support BOGO (Buy One, Get One) automatic discounts for subscription products. Unfortunately, this is a limitation on Shopify's side.
How can we prevent customers from availing a higher discount on first order of subscription and cancel before the second order?
How can we prevent customers from availing a higher discount on first order of subscription and cancel before the second order?
To prevent abuse of the higher discount on first order of subscription, you can make use of the "minimum billing cycles" requirement (e.g., at least 2/3 deliveries) in your selling plan. This stops customers from canceling immediately after the first order.
How can I ensure Loop's discount is not combined with discount from another app?
How can I ensure Loop's discount is not combined with discount from another app?
Ensuring Loop's discount is kept separate from another discount, might not be possible right now but, you can always configure how your discounts behave by going to: Shopify > Discount > Go inside a Discount and configure the combinations the way you wish to.
If I give customers a discount code, will this just apply to their first order?
If I give customers a discount code, will this just apply to their first order?
When you create discount in Shopify discount module - you can define limits / controls.
1. You can chose to give discount only on checkout order (only once for new customers)
2. You can give discount only on subscription order
3. You can give discount on first x orders which are subscriptions
4. You can also give a discount which can be applied by existing subscribers on the customer portal only once
API endpoints and webhooks
API endpoints
Add discount admin API
Update discount admin API
Remove discount admin API
Remove all discounts admin API
Apply discount code storefront API
Remove discount storefront API
Webhooks
subscription/updated Webhook to subscribe
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Regards,
Loop Subscriptions Team 🙂



