How to Use Automatic Discounts to Clear Out Inventory on Shopify

how to use automatic discounts to clear out inventory on shopify

Have you ever checked your Shopify store and discovered that you have a lot of outdated products?

Having too many outdated products can be a major problem for business owners. It takes up valuable space, costs money, and prevents you from introducing new products to your store.

The good news is that automatic discounts can help you clear out your inventory and introduce new products in your Shopify store.

This guide will show you how to use automatic discounts to clear out old inventory effectively. Learn how to make the most of these discounts to manage your inventory better.

We’ll explore the specific reasons why they’re a perfect fit for inventory clearance, followed by a breakdown of the numerous benefits they offer for both you and your customers.

Let’s explore why automatic discounts are a great way to clear inventory, followed by a detailed look at the numerous benefits they bring to both you and your customers.

By the end of this guide, you’ll have the knowledge and tools to run a successful automatic discount campaign. This will help you free up space in your store and set yourself up for future success.

Why Use Automatic Discounts for Inventory Clearance?

Clearing out inventory is crucial for business owners. Sometimes, products don’t sell as quickly as expected or they become outdated because customers preferences change, the seasons change, or what’s popular in the market changes.

In these situations, using automatic discounts has many benefits:

  • Efficiency and Speed: Automatic discounts make clearing out inventory faster by automatically changing prices without needing anyone to do it manually.
  • Customer Engagement: When prices are lower, it attracts customers who care about saving money, making them want to buy more. Automatic discounts make people feel like they’re getting a good deal quickly, making them want to buy things before the offer runs out.
  • Improved Cash Flow: Selling inventory that doesn’t sell quickly can turn things that aren’t moving into money that can be used right away.
  • Targeted Promotions: You can configure automatic discounts to target specific products or collections with excess inventory. This allows you to focus your efforts on clearing out the products that need to sell more.
  • Data-Driven Decisions: Automatic discounts allow you to track their effectiveness and improve customer behavior. This data can inform future inventory management strategies and help you avoid overstocking in the future.

Benefits of Using Automatic Discounts for Cleaning Inventory:

Using automatic discounts to clear out inventory has many benefits that can improve business performance and customer satisfaction:

1. Optimized Inventory Management: By using automatic discounts to reduce extra stock, businesses can keep their inventory at the right levels, avoiding overstock and making their supply chain work better.

2. Increased Sales and Conversion: Lower prices attract more customers, which means increases in sales and conversion rates. This works especially well for seasonal products.

3. Customer Loyalty and Satisfaction: Giving discounts shows that the business cares about what customers want. Happy customers are more likely to come back and buy again, and they might also tell other people about your business.

4. Competitive Advantage: Businesses that quickly sell off inventory through automatic discounts gain an advantage by adapting to market changes and staying ahead of their competitors.

5. Data-Driven Insights: Automatic discounts collect valuable information about what products customers are buying, how they are buying, and which products are performing well. This helps businesses set product prices and advertise them in the future.

6. Dynamic Pricing Strategies: Automated discounts allow businesses to implement dynamic pricing strategies based on real-time data and market trends. Companies can optimize margins, react to competitive pricing, and maximize revenues by adjusting dynamic prices.

7. Competitive Advantage: Businesses that use automatic discounts can gain an advantage by remaining flexible and responding quickly to market trends. Businesses can beat their competitors by gaining more customers, and remain ahead in their industry.

Learn more about how to show discounts on Shopify cart page a step-by-step guide

Setting Up Automatic Discounts in Shopify with AIOD ‑ All‑In‑1 Discount:

While Shopify itself doesn’t offer built-in automatic discounts, there are powerful third-party apps that can help you achieve this goal.

Here, we’ll walk you through the process using AIOD ‑ All‑In‑1 Discount, a popular and versatile option for creating automatic discounts on your Shopify store.

Navigating to the Discounts Section in AIOD:

  • Within your Shopify admin panel, head over to the Apps section.
  • Locate AIOD ‑ All‑In‑1 Discount and click on it to launch the app.
  • This will take you to the AIOD dashboard, where you can manage all aspects of your automatic discount strategy.

Choosing Automatic Discounts:

AIOD offers a wide range of discount options, but for inventory clearance, the focus will be on automatic discounts. Within the AIOD dashboard, you’ll likely find a dedicated section for creating and managing these automatic offers.

Discount Options with AIOD:

AIOD provides a rich selection of automatic discount types to perfectly suit your clearance needs.

Here are a few popular options:

  • Quantity Breaks: Encourage bulk purchases by offering discounts for buying a certain number of items (e.g., 10% off for buying 3 or more).
  • BOGO (Buy One Get One): This classic promotion incentivizes purchases by offering a free item when a customer buys another (e.g., Buy one t-shirt, Get one 15% off).
  • Free Gift: Sweeten the deal by automatically adding a free gift to the cart when a customer reaches a specific spending threshold (e.g., Free tote bag with orders over $500).

These are just a few examples, and AIOD offers even more options like percentage discounts, fixed amount discounts, tiered promotions, and more.

Explore the app’s features to find the perfect fit for your clearance sale.

Targeting Specific Products or Collections with AIOD:

AIOD understands that you might not want to discount your entire inventory. The app allows you to target specific products or collections that are overflowing with stock.

This way, you can focus your efforts on clearing out slow-moving items while keeping your best sellers at full price.

What Merchants Think About AIOD:

Here’s a glimpse into what Shopify merchants appreciate about AIOD:

  • Versatility: Merchants love AIOD’s ability to handle a wide range of discount types, from simple percentage discounts to complex bundles and BOGOs. This allows them to create targeted and effective clearance campaigns.
  • Ease of Use: The user-friendly interface makes it easy to create and manage automatic discounts, even for those without extensive technical knowledge.
  • Flexibility: AIOD offers a high degree of customization, allowing merchants to tailor discount rules, set durations, and choose which products or collections to target.
  • Data Insights: The app provides valuable insights into discount performance, helping merchants track their effectiveness and refine their strategy for future sales.

Optimizing Your Automatic Discount Strategy for Maximum Impact:

Once you’ve familiarized yourself with setting up automatic discounts in Shopify using AIOD, it’s time to delve into crafting the most impactful strategy for your inventory clearance goals.

Here are some key considerations to optimize your automatic discount campaign:

1. Set Clear Objectives: Start by setting clear goals for your automatic discount plan that you can measure. Whether you want to sell more, get rid of extra inventory, bring in new customers, or make people spend more each time they buy, having clear goals will help you decide how to use discounts and see if they’re working.

2. Understand Your Audience: Analyze what your customers like, how they act, and what they usually buy. Divide your customers into groups based on things like their age, what they’ve bought before, and what they’re interested in. Make special discount offers that each group will like and find useful.

3. A/B Testing: Try out different discount offers, messages, and ways of giving discounts to see what works best. Test things like how big the discount is, how long the offer lasts, where you promote it, and what you say to get people to act.

a/b testing

4. Urgency: Create a feeling of urgency among your customers by using time-limited offers, limited stock discounts, or flash sales. By setting deadlines or showcasing limited availability, you can encourage customers to act quickly and make a purchase before they miss out.

5. Monitor Competitor Activity: Watch what your competitors are doing with their discounts and prices to understand what’s happening in the market and how you compare.

6. Integrate with Marketing Channels: Connect your automatic discount plan with your marketing efforts to expand your reach and get noticed.

Advanced Strategies for Inventory Clearance with Automatic Discounts:

While the basic principles of automatic discounts are effective, you can take your inventory clearance game to the next level with some creative strategies.

Here are a few advanced tactics to consider:

1. Dynamic Pricing Algorithms:

dynamic pricing algorithm

Dynamic pricing algorithms involve the use of automated systems to adjust prices in real-time based on various factors such as demand, supply, competitor pricing, and customer behavior.

These algorithms enable businesses to optimize pricing strategies dynamically, maximizing revenue and profitability.

2. Segmented Discounting:

segmented discounting

Segmented discounting involves the practice of offering different discount rates or promotions to different segments of customers based on various factors such as demographics, purchasing behavior, or loyalty status.

This strategy allows businesses to tailor their discount offers to specific customer groups, maximizing the effectiveness of their promotions and driving customer engagement.

For example, offer exclusive discounts to high-value customers or segment-specific promotions to encourage repeat purchases.

3. Bundle Discount Strategies:

bundle discount strategies

Bundle discount strategies involve offering discounts or special pricing when customers purchase multiple items together as a bundle or package.

These strategies aim to increase the average order value (AOV), encourage upsells, and drive sales by incentivizing customers to buy complementary products together.

4. Strategic Product Positioning:

strategic product positioning

Strategic product positioning involves the deliberate placement of products within a company’s product assortment to maximize visibility, sales, and profitability.

This strategy takes into account various factors such as product characteristics, customer preferences, market trends, and competitive landscape to determine the optimal placement of products within your Shopify store.

5. Multi-Channel Promotion:

multi channel promotion

Multi-channel promotion involves the use of various marketing channels to reach and engage with customers across multiple touchpoints.

This strategy allows businesses to maximize their reach, increase brand visibility, and drive customer engagement by leveraging a combination of online and offline channels.

6. Build Loyalty Programs:

build loyalty programs

Building loyalty programs involves creating structured initiatives aimed at rewarding and incentivizing customers for their continued support and engagement with a brand or business.

These programs are designed to foster long-term relationships, increase customer retention, and drive repeat purchases.

Measuring the Success of Your Automatic Discount Campaign to Clear Out Inventory:

Once you’ve started your inventory clearance automated discount campaign, it’s crucial to monitor how it impacts your business goals. Compare pre-discount sales figures to the discounted period to see the impact.

Overall sales are also important. Did the discounts lead to sales or a boost in your average order value (AOV)? Maybe customers loaded up on bulk discounts or bundled offers.

But sales figures aren’t the whole story. Keep an eye on customer behavior too. Did you attract new customers with your deals? Look for a rise in first-time buyers. How engaged were existing customers?

Track metrics like clicks on discount banners or how often discount codes were used. Did these discounts convert into sales? Monitor the conversion rate from product views or abandoned carts to actual purchases during the campaign.

This data is gold. By analyzing it, you can identify what worked and what didn’t. Maybe a specific discount percentage wasn’t effective for a certain product category.

Now you know to adjust it next time. Use these insights to optimize future automatic discount strategies. Tailor offers to different customer segments based on their behavior or experiment with various discount structures to see what resonates best with your audience.

Many Shopify automatic discount apps, like AIOD ‑ All‑In‑1 Discount, can simplify this process. They might offer built-in reporting features that track the discounts that you have created on your Shopify store.

By closely monitoring your campaign and leveraging this data, you can ensure your automatic discounts are a strategic tool for inventory clearance, not just a random promotion.

This data-driven approach will maximize your profitability and keep your store running smoothly.

Learn more about the top 10 best Shopify inventory management apps for [2024].


In conclusion, automatic discounts are a powerful tool for clearing out inventory in your Shopify store.

They not only help you free up valuable space and improve cash flow, but also attract new customers, boost sales, and increase customer satisfaction.

By strategically implementing automatic discounts, you can optimize your inventory management, gain a competitive edge, and set your store up for long-term success.

Here’s a quick recap of the benefits:

  • Clear Excess Inventory
  • Boost Sales and Conversions
  • Improve Customer Satisfaction
  • Gain a Competitive Edge
  • Gather Valuable Data

Ready to take control of your inventory and unlock the power of automatic discounts?

Try AIOD ‑ All‑In‑1 Discount today!

AIOD offers a wide range of features to help you create and manage effective automatic discounts for your Shopify store.

With its user-friendly interface, powerful customization options, and valuable data insights, AIOD is the perfect tool to streamline your inventory clearance efforts and achieve your business goals.

Don’t wait any longer! Visit our Shopify app to learn more about AIOD and start your free trial today!

Leave a Reply

Your email address will not be published. Required fields are marked *