A capped discount lets you offer a percentage off while setting a ceiling on how much a customer can save. This gives shoppers a meaningful deal without risking oversized discounts on large orders - keeping your promotions both attractive and financially predictable.
What is a Capped Discount?
A capped discount applies a percentage off a customer's cart but limits the total saving to a fixed rupee amount. For example, 10% off with a cap of Rs. 300 means a customer with a Rs. 5,000 cart still only saves Rs. 300 - not Rs. 500. The percentage makes the offer feel generous; the cap keeps your margins in check.
Why Use a Capped Discount?
Percentage discounts are compelling to customers because the savings feel proportional to what they spend. But without a cap, they can become costly on high-value carts. A cap gives you the best of both: a percentage-based offer that resonates with customers, and a hard limit that protects profitability no matter how large the order gets.
When to Use This
Capped discounts work well when you want to:
Run sitewide percentage-off promotions without open-ended liability on large orders
Offer a compelling discount to broad audiences (all customers or repeat shoppers) while controlling cost
How to Set Up a Capped Discount
Step 1: Click Create Discount from your Shopflo dashboard to start a new discount.
Step 2: Enter a clear, descriptive Title for your discount so it is easy to identify in your dashboard later.
Step 3: Choose User Code mode to require customers to enter a promo code at checkout, or select Automatic to apply the discount without any code entry.
Step 4: Set the discount percentage. For example, enter 10 for a 10% discount on the cart value.
Step 5: Enter the maximum discount cap - for example, Rs. 300. This is the highest amount any customer can save, regardless of their cart total.
Step 6: Set the minimum cart amount required to unlock the discount - for example, Rs. 799. Customers whose cart falls below this value will not see the discount applied.
Once saved, the discount works like this: a customer with a Rs. 3,000 cart gets 10% off, but their saving is capped at Rs. 300 rather than Rs. 300. A customer with a Rs. 799 cart gets exactly Rs. 79.90 off - below the cap, so the full percentage applies.
Tips for Capped Discounts
Set your cap at a value that feels meaningful to customers but is sustainable for your business - typically 1.5x to 2x your average order's shipping cost or a fixed meaningful amount.
Communicate the cap clearly in your marketing copy so customers are not surprised at checkout.
Pair with a usage limit per customer to prevent repeat use by the same shopper during the same campaign.
Need more help? Reach out to us at support@shopflo.com and we will be happy to help.