> For the complete documentation index, see [llms.txt](https://responsive-media.gitbook.io/advanced-free-shipping/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://responsive-media.gitbook.io/advanced-free-shipping/core-concepts/discount-types.md).

# Discount Types

## Overview

Advanced Free Shipping offers four types of shipping discounts. Each serves different use cases and customer expectations.

## Free Shipping

**Makes shipping completely free (100% off)**

### When to Use

* Cart value thresholds ("Free shipping over $50")
* VIP customer rewards
* Product-specific promotions
* First-time customer incentives
* Seasonal promotions

### How It Works

The shipping rate shows as $0.00 or "FREE" at checkout. All shipping costs are waived.

### Example Configurations

{% tabs %}
{% tab title="Basic Free Shipping" %}
**Free shipping for all orders over $50**

* Condition: Cart total ≥ $50
* Target: All shipping rates
* Discount: **Free**
  {% endtab %}

{% tab title="VIP Free Shipping" %}
**Free shipping for VIP customers**

* Condition: Customer tag contains "VIP"
* Target: All shipping rates
* Discount: **Free**
  {% endtab %}

{% tab title="Product-Specific" %}
**Free shipping on winter coats**

* Condition: Product in cart contains "Winter Coat"
* Target: All shipping rates
* Discount: **Free**
  {% endtab %}
  {% endtabs %}

***

## Percentage Off

**Reduces shipping by a percentage (e.g., 50% off)**

### When to Use

* Graduated discounts based on cart value
* Loyalty program benefits
* Encouraging upgrades to faster shipping
* Testing discount levels before committing to free shipping

### How It Works

The original shipping cost is reduced by the specified percentage. A $10 shipping rate with 50% off becomes $5.

### Example Configurations

{% tabs %}
{% tab title="50% Off Shipping" %}
**Half-price shipping for orders over $30**

* Condition: Cart total ≥ $30
* Target: All shipping rates
* Discount: **50% off**

A $10 rate becomes $5, a $20 rate becomes $10.
{% endtab %}

{% tab title="Tiered Discounts" %}
**Different percentages for different cart values**

Create multiple discounts:

Discount 1:

* Condition: Cart total ≥ $30
* Discount: **25% off**

Discount 2:

* Condition: Cart total ≥ $50
* Discount: **50% off**

Discount 3:

* Condition: Cart total ≥ $75
* Discount: **100% off** (Free)
  {% endtab %}

{% tab title="Express Shipping Discount" %}
**Encourage express shipping upgrades**

* Condition: Cart total ≥ $100
* Target: Specific rates → "Express"
* Discount: **75% off**

Makes express shipping more affordable for high-value orders.
{% endtab %}
{% endtabs %}

***

## Fixed Amount Off

**Reduces shipping by a fixed dollar amount (e.g., $5 off)**

### When to Use

* Specific dollar-amount promotions ("$5 off shipping")
* Matching competitor offers
* Budget-controlled shipping subsidies
* Promotional campaigns with set discount values

### How It Works

The specified amount is subtracted from the shipping cost. A $10 rate with $5 off becomes $5. If the discount exceeds the shipping cost, shipping becomes free.

### Example Configurations

{% tabs %}
{% tab title="$5 Off Shipping" %}
**$5 off shipping for orders over $40**

* Condition: Cart total ≥ $40
* Target: All shipping rates
* Discount: **$5 off**

$12 shipping → $7 $5 shipping → Free $3 shipping → Free
{% endtab %}

{% tab title="Graduated Fixed Discounts" %}
**Increasing discount with cart value**

Discount 1:

* Condition: Cart total ≥ $30
* Discount: **$3 off**

Discount 2:

* Condition: Cart total ≥ $50
* Discount: **$7 off**

Discount 3:

* Condition: Cart total ≥ $75
* Discount: **$15 off** (likely makes it free)
  {% endtab %}

{% tab title="Regional Subsidy" %}
**Different amounts for different regions**

Rule Group 1 (US):

* Condition: Country is US
* Discount: **$5 off**

Rule Group 2 (CA):

* Condition: Country is CA
* Discount: **$10 off**

Subsidize more expensive international shipping.
{% endtab %}
{% endtabs %}

{% hint style="info" %}
If your fixed discount is greater than the shipping cost, the rate becomes free. The customer never pays negative shipping.
{% endhint %}

***

## Fixed Price

**Sets shipping to a specific price (e.g., flat $3 shipping)**

Fixed price discounts create predictable, flat-rate shipping regardless of the original cost.

### When to Use

* Flat-rate shipping promotions ("$3 shipping on all orders")
* Simplifying shipping costs for customers
* Promotional campaigns with set shipping prices
* Competing with flat-rate shipping offers

### How It Works

The shipping rate is set to your specified target price, but **only if the original cost is higher than your target**. If the original shipping cost is already at or below your target price, no discount is applied and the rate shows its original cost.

Examples:

* Original cost $15, target $3 → Discounted to $3
* Original cost $8, target $3 → Discounted to $3
* Original cost $3, target $3 → No discount, shows $3
* Original cost $2, target $3 → No discount, shows $2

### Example Configurations

{% tabs %}
{% tab title="Flat $3 Shipping" %}
**$3 flat rate shipping for all orders**

* Condition: None (always applies)
* Target: All shipping rates
* Discount: **$3 fixed price**

All shipping rates that cost more than $3 are discounted to $3. Rates already at or below $3 remain unchanged.
{% endtab %}

{% tab title="Conditional Flat Rate" %}
**$5 flat shipping for orders over $25**

* Condition: Cart total ≥ $25
* Target: All shipping rates
* Discount: **$5 fixed price**

Orders under $25 pay normal shipping, orders $25+ pay flat $5.
{% endtab %}

{% tab title="Premium Flat Rate" %}
**$1 express shipping for VIPs**

* Condition: Customer tag contains "VIP"
* Target: Specific rates → "Express"
* Discount: **$1 fixed price**

VIP customers can get express shipping for just $1.
{% endtab %}
{% endtabs %}

{% hint style="info" %}
Fixed price discounts cannot increase shipping costs. If your target price is higher than the original rate, no discount is applied and the original cost is shown.
{% endhint %}

***

## Choosing the Right Type

* **Use Free When**
  * You want maximum conversion impact
  * Cart value justifies absorbing shipping
  * Running major promotions
  * Rewarding loyal customers
* **Use Percentage When**
  * Testing discount levels
  * Creating tiered incentives
  * Proportional discounts feel fair
  * Encouraging shipping upgrades
* **Use Fixed Amount When**
  * You have a specific budget per order
  * Matching competitor offers
  * Running dollar-based promotions
  * Partial shipping subsidies
* **Use Fixed Price When**
  * Simplifying customer decisions
  * Flat-rate promotions
  * Competing with flat-rate offers
  * Creating predictable costs

## Combining Discount Types

You can create multiple targets with different discount types in a single discount:

**Example**: Free standard shipping, $5 express shipping

* Condition: Cart total ≥ $50
* Target 1: Standard Shipping → **Free**
* Target 2: Express Shipping → **$5 fixed price**

This encourages customers to choose free standard shipping while still offering affordable express shipping.

{% hint style="info" %}
Learn more about multiple targets in the [Advanced Features](/advanced-free-shipping/advanced-features/multiple-targets.md) section.
{% endhint %}

## Next Steps

* [**How It Works**](/advanced-free-shipping/core-concepts/how-it-works.md) - Understand rule groups and conditions
* [**Test Mode**](/advanced-free-shipping/core-concepts/test-mode.md) - Test discounts safely
* [**Use Cases**](/advanced-free-shipping/common-use-cases/use-cases.md) - See real-world examples
* [**Shipping Targets**](/advanced-free-shipping/shipping-targets/all-shipping-rates.md) - Learn about targeting specific rates


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