Squarespace Ecommerce Basics 4.3 Adding Discounts & Promotions

Learn to create and manage discount codes in Squarespace to increase sales and track campaign performance effectively.

Add Squarespace Discount Codes to Boost Sales

Learning Objectives

By the end of this chapter, you'll be able to:

  • Create and configure discount codes in Squarespace
  • Set up targeted promotions for specific products or customer groups
  • Track and analyse the performance of your discount campaigns
  • Apply proven discount strategies to increase conversions

Introduction

Discount codes are one of the most effective ways to drive sales and encourage customer action. Whether you're clearing old stock, rewarding loyal customers, or attracting new buyers, knowing how to set up and manage discounts properly can make a real difference to your bottom line.

This chapter walks you through everything you need to know about creating discount codes in Squarespace. We'll cover the technical setup, different types of promotions you can run, and how to measure their success.

Lessons

Setting Up Your First Discount Code

Here's how to create a discount code in Squarespace:

Step 1: Log into your Squarespace account and go to Commerce > Discounts

Step 2: Click the plus icon to add a new discount

Step 3: Choose your discount type:

  • Percentage off (e.g., 20% off)
  • Fixed amount off (e.g., £10 off)
  • Free shipping

Step 4: Set your discount conditions:

  • Minimum order value
  • Specific products or categories
  • Customer eligibility (new customers, existing customers, etc.)

Step 5: Create your discount code name. Make it memorable but not too easy to guess

Step 6: Set usage limits and expiry dates

Step 7: Save and test your code before going live

This is the bit most people miss: always test your discount code with a small test order to make sure it works as expected.

Targeting Your Promotions

Different types of discounts work better for different goals. Here's what works well:

For new customers:

  • Percentage discounts (10-15% off first order)
  • Free shipping thresholds
  • Welcome bundles

For existing customers:

  • Loyalty discounts based on purchase history
  • Early access to sales
  • Birthday or anniversary offers

For clearing stock:

  • Higher percentage discounts (30-50% off)
  • Buy-one-get-one offers
  • Category-specific clearance codes

You can set conditions in Squarespace to make sure your discounts reach the right people. Use the customer eligibility settings to target first-time buyers or limit codes to previous customers.

Measuring Discount Performance

Once your discount is live, you need to track how it's performing:

In Squarespace:

  • Go to Commerce > Discounts to see basic usage stats
  • Check Analytics > Commerce for overall sales impact
  • Look at order volume and average order value during discount periods

Key metrics to watch:

  • Total discount uses
  • Revenue generated from discounted orders
  • New vs returning customers using the code
  • Impact on average order value

Here's the quick version: if your discount increases total revenue despite the lower margin per sale, it's working.

Common Discount Mistakes to Avoid

  • Setting discounts too high and training customers to only buy on sale
  • Not setting expiry dates or usage limits
  • Making discount codes too obvious or easy to guess
  • Running discounts without clear goals or success metrics
  • Not promoting discount codes effectively

Practice

Set up a test discount code for your store:

  1. Create a 10% off discount code with a £20 minimum spend
  2. Set it to expire in one week
  3. Limit it to 50 uses maximum
  4. Test the code works by adding items to your cart
  5. Check the discount applies correctly at checkout

Try different settings to see how they affect the discount behaviour. This hands-on practice helps you understand what customers will experience.

FAQs

Can I create discount codes for specific products only?
Yes, when setting up your discount, use the "Applies to" section to select specific products or categories. This is useful for promoting particular items or clearing stock.

How do I stop people sharing my discount codes?
You can't completely prevent sharing, but you can limit the impact by setting usage limits per customer or creating single-use codes for email campaigns.

Why isn't my discount code working?
Check that the code is active, hasn't expired, and that the customer's order meets all the conditions you set (minimum spend, eligible products, etc.).

Can I stack multiple discount codes?
No, Squarespace only allows one discount code per order. However, you can combine discount codes with other promotions like member pricing.

How do I create automatic discounts without codes?
Use the "Automatic" option when creating your discount. This applies the discount automatically when conditions are met, without needing a code.

Jargon Buster

Discount Code: A text code customers enter at checkout to receive a price reduction

Conversion Rate: The percentage of visitors who complete a purchase

Average Order Value: The typical amount customers spend per transaction

Minimum Order Value: The smallest order total required for a discount to apply

Usage Limit: The maximum number of times a discount code can be used

Wrap-up

You now know how to create, configure, and track discount codes in Squarespace. Start with simple percentage discounts to test what works for your audience, then experiment with more targeted promotions.

Remember to set clear goals for each discount campaign and track the results. The best discount strategy is one that increases your overall revenue, not just your order volume.

Ready to take your ecommerce skills further? Join our community of Squarespace users: https://www.pixelhaze.academy/membership