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How to Create Location-Based Discounts on Shopify POS

By Prince Kantariya

Updated: October 7th, 2025

how to create location based discounts on shopify pos
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Managing discounts across different store locations is often frustrating. A single promotion does not always fit every store.

For example, a flagship store in the city might benefit from exclusive holiday offers, while a smaller outlet may need clearance discounts to move inventory. Until now, Shopify POS treated all locations the same.

With the new AIOD feature, you can now create location-based discounts for Shopify POS. This feature gives you the flexibility to apply discounts only where they make sense.

It helps you control in-store and online promotions separately, keeping your campaigns focused and effective.

In this guide, you’ll learn:

  • What’s new in AIOD’s POS location feature
  • Which discount types support location targeting
  • How to set up location-based discounts (step-by-step)
  • Why this matters for multi-location merchants

By the end, you will know how to run targeted offers that work better for each store.

What’s New in AIOD?

AIOD now supports location-based discounts on Shopify POS. This means you can run different discount campaigns at each physical store without affecting your online store or other retail locations.

Merchants can use this feature with almost all discount types, including:

Compatible with POS Location Targeting:

  • Bundle Discount: Create location-specific product bundles (e.g., “Buy 3 items, get 10% off” only at Store A).
  • Free Gift: Offer free products with purchase at select locations (e.g., free tote bag at the flagship store only).
  • Volume/Bulk Discount: Set quantity-based discounts per location (e.g., “Buy 5+, save 15%” at warehouse store).
  • Wholesale/General Discount: Apply wholesale pricing rules to specific retail locations.
  • BOGO Discount: Run buy-one-get-one offers at chosen stores (e.g., BOGO 50% at new location).
  • Cart Conditional Discount: Create spend thresholds by location (e.g., “Spend $100, save $20” at Store B).

Not Compatible with POS Location Targeting:

  • Post-Purchase Discount: This discount type does not support POS location targeting.

Important: Location-based targeting does not work with Post-Purchase Discounts. All other discount types support POS location selection.

This update gives you more control over how discounts run in physical stores. You can tailor offers to match local demand, seasonal trends, or inventory needs without affecting online promotions.

If you’re new to AIOD’s discount types, check out our complete guide on automatic discounts in Shopify to learn how each discount works.

How to Create Location-Based Discounts on Shopify POS:

Follow these steps to set up your first location-based discount:

Step #1: Access the AIOD Dashboard:

Log in to your Shopify admin panel and open the AIOD app. From the main dashboard, click “All Automatic Offers” or select an existing discount to modify.

access the aiod dashboard from the shopify admin

Step #2: Choose Your Discount Type:

Select the discount type you want to create. Remember, all discount types except Post-Purchase support POS location targeting.

For this example, let’s use “Bundle Discount”. Click on “Bundle Discount” from the left sidebar menu.

choose your discount type from the shopify admin

Step #3: Enable POS Location Targeting:

Scroll down to find the “POS Locations” section (shown in the right panel). This section controls where your discount will be active.

You’ll see two options:

  • All Locations (default)
  • Selected Locations

Click “Select Location” to choose specific stores.

enable pos location targeting

Step #4: Select Specific Locations:

A dropdown menu appears with all your Shopify POS locations. Select the stores where you want this discount to run.

You can choose:

  • A single location for exclusive offers
  • Multiple locations for regional campaigns
  • All locations except one (by selecting all others)

The interface shows “Selected Locations” with your choices displayed. Remove any location by deselecting it from the dropdown.

select specific locations from aiod app to apply discount

Note: The offer will only work on the selected sales channels. Make sure “Online Store & POS (Both)” or “Point of Sale” is selected under “Publishing channels” at the top.

Step #5: Configure Discount Rules:

Set up your discount details:

  • Choose products: Add the products or variants for your bundle (or other discount type)
  • Set quantities: Define how many items customers need to purchase
  • Discount percentage or amount: Enter your discount value (e.g., 10% or $5 off)
  • Discount rule: Choose between a percentage discount or a fixed amount discount

Step #6: Activate Your Offer:

Configure your publishing dates:

  • Start Date: When the discount goes live (leave blank to start immediately)
  • End Date: When the discount expires (optional)
activate your offer from the aiod dashboard

Review all settings, then click “Save” to activate your location-based discount.

The discount is now live at your selected POS locations only.

Why Location-Based Discounts Help Merchants?

Location-based discounts give merchants more control and flexibility.

Here’s how:

1. Run Location-Specific Promotions:

Create targeted campaigns for individual stores or regions. Launch a city-wide promotion in one location while running standard offers elsewhere. Test different discount strategies per store to find what works best for each local market.

For example, your downtown store faces heavy competition. Run a 20% bundle discount there, while suburban locations maintain 10% off. Each store gets the pricing strategy it needs.

2. Control In-Store vs. Online Campaigns Separately:

Keep your online store pricing independent from retail locations. Run aggressive POS discounts to drive foot traffic without devaluing your online products or training customers to wait for sales.

Your eCommerce channel maintains its pricing strategy while physical stores adapt to local conditions, competitor pricing, or seasonal demands.

3. Boost Local Store Sales Strategically:

Target underperforming locations with stronger offers. Move excess inventory from specific stores using clearance bundles available only at those locations.

New store openings get exclusive launch promotions to build initial traffic and awareness. High-performing stores can test premium bundles or limited offers to maximize revenue per transaction.

Conclusion:

Location-based discounts give multi-location merchants the flexibility to run targeted promotions without compromising their overall pricing strategy.

You can now match local competition, clear inventory strategically, and boost underperforming stores with location-specific offers.

AIOD’s POS location feature works with six discount types (Bundle, BOGO, Free Gift, Volume/Bulk, Wholesale, and Cart Conditional) and is available to all users across all plans.

The setup takes minutes, and you get immediate control over which stores run which promotions.

Ready to create your first location-based discount? Open AIOD, select your discount type, choose your POS locations, and launch targeted offers that drive sales where you need them most.

Start testing location-specific promotions today and see which strategies work best for each of your stores.

If you have questions, our support team is here to help.


Frequently Asked Questions (FAQ)

Can I Use Location-Based Discounts for All My Shopify POS Stores?

Yes. You can select which stores the discount applies to. You do not need to apply it to all locations.

Which Discount Types Support Location Targeting?

Bundle discounts, BOGO, free gifts, percentage discounts, fixed-amount discounts, and quantity breaks support location-based settings. Post-purchase discounts are not compatible.

Can I Run the Same Discount Online and In-Store at the Same Time?

Yes, but only if you configure the discount for multiple channels. Using location-based settings lets you keep in-store discounts separate from online offers.

How do I Test if a Location-Based Discount is Working?

After setting up the discount, go to the POS at the selected location and apply it during checkout. Confirm that the discount is applied correctly before making it live for customers.

Can I Schedule Location-Based Discounts in Advance?

Yes. AIOD allows you to set start and end dates for each discount, giving you control over when each promotion runs.

Will Location-Based Discounts Affect Inventory Tracking?

No. Discounts only modify the price at the selected POS locations. Inventory levels continue to update normally across all stores.

Can I Create Different Discounts for the Same Product at Different Locations?

Yes. You can assign unique discount rules for each store. For example, a flagship store might run a percentage-off promotion, while a smaller outlet uses a bundle offer for the same product.

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