Sales Promotion: Types, Examples, and Ideas (2026)

Sales promotions are one of the oldest marketing techniques in retail, and for good reason. eMarketer reports 55% of customers actively search for discount codes in a bid to reduce their spending. Some 18% treat deal and review sites as a source of inspiration for new products. 

A sales promotion can be used to get rid of old inventory and make room for new products. It could also be a seasonal campaign, like Black Friday or Cyber Monday, to capitalize on consumer spending. Or perhaps you’re launching a new product line and are eager to attract customers.

Ahead, you’ll learn how to run sales promotions for your retail business. We’ll cover the different types of promotion, with tips to plan a campaign.

What is a sales promotion?

A sales promotion is a temporary marketing activity designed to drive immediate demand. It usually involves offering a discount or other incentive for a short period, giving customers a reason to buy now instead of waiting. This sense of urgency can increase conversions by making the offer feel more timely and valuable.

A sales promotion is a short-term part of a larger marketing plan. It can be run for various reasons, but the end goal is always to increase sales. 

Common sales promotion objectives include:

• Driving immediate purchases
• Moving old or excess inventory
• Attracting new customers
• Increasing repeat purchases
• Building awareness for a product or brand

Benefits of sales promotions

Sales promotions have four main benefits: increase sales, build loyalty, gain market share, and strengthen competitive positioning.

Increase sales

Promotions are particularly important for major shopping events like Black Friday and Cyber Monday. These holiday shopping periods present opportunities for retailers and sales teams to run promotions that boost sales and attract new customers. 

For example, during Black Friday in 2025, more than 94,000 merchants experienced their highest-selling day ever on Shopify. Collectively, they reached a record of $14.6 billion in sales over the holiday weekend, a 27% increase from 2024. 

Build loyalty

Customers sometimes need a little push to rekindle their relationship with your brand. A crowded market—coffee, for example—will provide them with plenty of choices. However, you might be able to convince a customer to buy this week’s bag of beans from you instead of a competitor if you run a promotion. They may even switch to you as their regular supplier after remembering how tasty your beans are.

Get started: Choose from hundreds of loyalty apps in the Shopify App Store and start rewarding shoppers for purchases they make both online and in-store.

Gain market share

Sales promotions can help a business win a larger share of category spending by giving shoppers a reason to choose your brand over another at the moment of purchase. This matters most in crowded categories where customers are comparing several similar options and a timely offer can tip the decision in your favor.

The goal is expansion: bringing new buyers into your customer base, increasing basket size, or capturing purchases that would otherwise go to a competitor.

Counteract competitor actions

Sales promotions can also serve a defensive purpose when competitors launch campaigns, cut prices, or increase visibility. Bundles, loyalty perks, limited-time gifts, or exclusive access are formats that can respond to competitor pressure without requiring a permanent price reduction.

Cons of sales promotions

The three primary drawbacks of sales promotions are:

• It can devalue your brand. Too many promotions or the wrong type of promotions can hurt your brand’s image. Per Power Digital’s 2025 report, 11.7% of customers think deep discounts make a brand feel cheap. Some 10.6% admit to abandoning online carts they felt were cheapened by aggressive markdowns. 
• It can lower profit margins. OC&C’s Retail Preposition Index 2025 found margins are still significantly lower than they were five years ago. Layer in sales promotions onto already-thin margins and you risk losing money on customer acquisition—especially if you’re attracting price-sensitive shoppers who only buy during a sales promotion. 
• It can generate misleading sales data. While sales promotions can boost sales for new items, demand needs to be strong enough to last after the campaign ends. Review POS reports to find out whether bestsellers are truly bestsellers, or whether they’re only popular because of the discounted price. The latter could mask a lack of product-market fit or brand loyalty.

“If you start pushing discounts all the time, people will only buy when they get a discount,” says Daniel Brinch, partner at Camille Brinch, in a Shopify Masters episode. Ask yourself whether the short-term boost is worth the potential loss in lifetime value (CLV). 

Types of sales promotion techniques

1. Giveaways and sweepstakes
2. Bundling
3. Free trials and products
4. BOGO
5. Free shipping
6. Charitable donation
7. Flash sales
8. Subscriptions
9. Upsells
10. Coupons
11. First-time purchaser discounts
12. Rebates
13. Loyalty programs
14. Clearance sales
15. Lifestyle discounts
16. Free samples

There are many ways to structure a sales promotion:

1. Giveaways and sweepstakes

Giveaways offer a prize in return for participation in a publicity event. This covers: 

• Sweepstakes, raffles, and lotteries (random selection) 
• Contests (skill-based selection)

Be mindful of what’s legal in your area. Choose a prize that reflects what your customers want to get them excited about the draw, then write clear T&Cs to promote the giveaway. 

Astrid & Miyu, for example, ran a giveaway to celebrate the launch of its new personalized jewelry line co-created with fellow retailer Kat Clay Studio. Participants had to follow both brands on Instagram, like the post, and tag a friend in the comments. The winner received a free box of jewelry charms from the collab.

View this post on Instagram

A post shared by Astrid & Miyu (@astridandmiyu)

2. Bundling

By bundling, you can offer discounts available only when two or more items are purchased together. Selling bundles can increase average basket size, provide value in the form of curation to your customers, clear out old inventory, and drive more visibility for your products. 

“People want to purchase three candles and we have different themes for different bundles,” says Erica Werber, founder of Literie Candles, in a Shopify Masters interview. “We make three candles at a reduced price and it’s one click as opposed to adding three separate candles into your cart.”

3. Free trials and products

Free trials and products allow customers to try out your product or service for free without committing to anything. SoPost reports over 20% of consumers who receive a product sample go on to purchase the full-size item.

Spencer Lynn, northeast regional manager at KOS Naturals, uses this strategy at events. “If it’s really slow, I’ll grab some of our single-serving sample sachets and walk the floor myself and hand them out as I go. Sometimes people will come to seek out our booth after that to find out more info.”

4. BOGO

Also known as BOGOF, this refers to a buy one, get one free deal. It’s a compelling offer to customers who see it as a big saving. You might think you’re losing revenue to the value of one item. However, an increase in volume can be more profitable than selling single items depending on your profit margin per item.

Brands run BOGO sales all year round, including Black Friday Cyber Monday (BFCM). Post these sales on social media and drive traffic to your site.

5. Free shipping

Free shipping can be an attractive offer for ecommerce and mail-order brands that usually charge for it. You could offer it for every new order, to entice new customers, or for every order above a certain value. Review profit margins to calculate what’s financially viable. 

“We got rid of the shipping fee and instead we upped our minimum quantity to two bottles per order, so we were able to really satisfy our customers’ needs by reducing the price and eliminating shipping fee, but it also actually made us more profitable on the unit economic side,” says Claudia Snoh, cofounder of Kloo, in a Shopify Masters episode.

Run free shipping promos throughout the year or on special occasions like BFCM or Christmas. You can also combine free shipping promos with other discounts, as Light Your Home did during last year’s BFCM weekend. 

6. Charitable donations

Including a charitable donation with each order can be a mutually beneficial agreement. Customers feel good about helping a worthy cause, the charity benefits from increased income, and you benefit from allying yourself with a good cause. 

These promotions can work especially well during the holiday season, particularly when you partner with causes that align with your brand values and customers’ interests. Bombas, for example, has donated more than 200 million socks through its Giving Back program.

“Find something you’re passionate about … and do everything you can to focus your giving and help on that particular topic, because your customers will reward you for it,” says Tom Hassell, president of Life Is Good, in a Shopify Masters episode.

7. Flash sales

A flash sale is a limited-time sale that offers deep discounts on a particular range of products. Often, they’re not revealed until the last minute, giving shoppers a sense of urgency to purchase items before they sell out.

These promotions can work well beyond BFCM. Health and beauty brand Pilgrim, for example, launches three flash sales per year. They’ve recorded over 1,550 transactions per minute, a tenfold increase in web traffic, and a 22.4% conversion rate during flash sales.

8. Subscriptions

Subscriptions can cover information products (like publications or digital goods) or physical products (like grocery items). Customers typically get a certain percentage discount or special perks in return for committing to purchase multiple times. 

Subscribers on Heatonist’s monthly tier, for example, save $2 a month on shipping alongside branded stickers and early access to new product drops. Those paying annually get the same perks plus free shipping and $30 off. 

9. Upsells

An upsell is when you offer a customer an additional, upgraded product or service when you’re making the sale. Aftersell’s 2025 report found them lucrative—it suggests brands that add two upsells increase revenue by 20 times.

Tip: Apps like Marsello and Frequently Bought Together integrate with Shopify POS and recommend products to store staff based on what they’ve added to a customer’s cart. This makes it easier to suggest relevant products at checkout.

10. Coupons

Coupons are physical or digital vouchers that offer discounts on products or services. You can offer them through your website or through a coupon site like Groupon. A June 2025 Numerator survey found that 42% of consumers would look for sales or coupons to offset price increases.

“Just test it out,” says Eric Miller, founder of UX Kits, in a Shopify Masters episode. “Post that there’s a coupon for sharing on social media and have people email you when they do it.”

View this post on Instagram

A post shared by Eric Miller (@uxkits)

11. First-time purchaser discounts

A first-time customer promotion can be almost any benefit: reduced prices, free shipping, additional items or accessories, educational content, or one-on-one calls to show them how to use the product. 

The goal is not just to win the first order. It’s to turn a new customer into a repeat customer who returns without needing another introductory offer.

That said, only offering promotions to first-time customers does have its downsides. “It’s the most challenging thing to do in any brand, especially a legacy heritage brand, to come in and appeal to a new customer base whilst not alienating and upsetting the loyalists who have been there the whole way along,” says Jodie Harrison, chief brand officer at Belstaff, in a Shopify Masters episode.

Tip: View the First-time vs. returning customer sales report in Shopify admin to see how many orders come from new or returning customers, and the total value of those sales.

12. Rebates

A rebate returns part of the purchase price to the customer after the transaction, rather than reducing the price at checkout. Unlike an instant discount, the customer pays full price upfront and claims the rebate later. One research study found rebates make consumers 75.4% more likely to make a purchase.

13. Loyalty programs

Loyalty promotions reserve your best offers for repeat customers. Existing shoppers have to spend more to unlock the promotion, which can offset expensive acquisition costs you’ve already forked out on.

Liquid I.V. links this sales promotion with a referral marketing strategy. Members earn points for writing a review, attaching a video to their review, and following the brand on social media. Every dollar they spend gives them one point—the equivalent of 1¢—they can cash in on future purchases in denominations of $5.

14. Clearance sales

Clearance sales help move discontinued, seasonal, or end-of-stock products so inventory does not sit too long. That frees up space, reduces carrying costs, and makes room for newer merchandise. 

The Couture Club, for example, has a clearance section on its ecommerce website where products are listed with markdowns.

Clearance works best as an inventory tool, not a default pricing strategy. The National Retail Federation’s 2026 Retail Outlook says retailers are investing in demand forecasting and inventory optimization to reduce waste and rebalance stock across locations. Clearance sales are the practical fallback when inventory still needs a faster exit.

15. Lifestyle discounts

Lifestyle discounts give a specific group a dedicated offer based on identity, role, or affiliation. Examples include student, teacher, military, healthcare worker, and first responder discounts. 

Verification matters for these programs. Fashion brands like Princess Polly, Gymshark, and Alo Yoga, for example, run their student discount program through UNiDAYS instead of open promo codes. This limits redemption to the intended group and reduces misuse—only people with a verified student profile can access each brand’s promotion. 

16. Free samples

The best way to get your product in customers’ hands is to give it to them for free, if you’re confident they’ll like it (and are ready to get some feedback). Sample quality must reflect the full product experience to avoid negative impressions.

You can give free samples at your store, on your ecommerce website, or even at pop-ups, as Jimmy’s Iced Coffee did at a pop-up event in late 2025:

View this post on Instagram

A post shared by Jimmy's Iced Coffee (@jimmysicedcoffee)

Sales promotion strategies

There are three main strategies for running sales promotions.

Push strategy

A push strategy involves pushing your product toward your customers. Place products in prominent locations that catch attention, like point-of-purchase displays. 

Consider the snacks on display at the grocery store. Products are pushed to customers at the checkout stand to incite impulsive decisions while they wait. 

Pull strategy

Pull strategies involve making your customers want to buy your products. They construct an advertising campaign, give away freebies, and offer seasonal discounts to make your brand more visible.

Tip: Want to create beautifully branded emails to promote your next product launch? Use Shopify Messaging to create, send, and track promotional campaigns, all from within Shopify—no coding experience required.

Hybrid strategy

A hybrid strategy combines push and pull tactics. Using both, you can reach customers at each marketing funnel stage.

Sales promotion ideas

Promotions can take many forms, providing endless opportunities for creativity. The key is to be creative and cater to the needs of your target market without going over budget.

Here are a few sales promotion ideas to get you started:

Run social media giveaways

Social media is the perfect place to organize giveaways in return for engagement. You could partner with an influencer or complementary brand to extend the reach of your social media promotion. Have participants follow your brand, tag a friend, like the post, or share it to their own Stories to enter.

Tailor the giveaway format to each platform. For example, use comments or story shares on Instagram, short-form video prompts on TikTok, or repost-based entry mechanics on X.

Give out referral bonuses

Offer bonuses to customers who refer you to other potential customers. This is simple enough on most ecommerce platforms through referral apps. 

Bike transmission retailer WheelTop, for example, allows customers to earn 4% cashback by sharing their unique referral link with friends. When friends purchase through the link, they receive a 3% discount, and the referrer earns a 4% commission if the purchase is retained for 45 days without returns or refunds.

Try cashback promotions

Cashback promotions reward loyal customers with store credit for spending their hard-earned money with you. Shoppers can combine the cash they get back with coupons, promo codes, and deals to maximize their savings. 

Create a loyalty rewards program

Rewards as part of a loyalty program can work wonders for repeat purchases, like food, drink, household, or cosmetic items. 

BYLT’s rewards program also allows members to earn points on purchases and various activities, which can be redeemed for discounts and free products. The program has two tiers—Free and B+—with increasing benefits based on annual spend.

Free members earn 10% off their first purchase and 5% store credit on all future orders. Those who subscribe to B+ at a cost of $49 per year get 20% off their first order, 10% store credit on subsequent purchases, and free shipping. They’re also eligible for early drop access and member events. 

Organize seasonal promotions

As well as the meteorological seasons, there are cultural and religious holidays, international celebration days, and fun pop-culture events (like May 4th: Star Wars Day). 

Map out your promotional calendar at least one quarter in advance to give lead time for planning, and stick to those dates your target audience will celebrate. This helps avoid over-discounting and conditioning shoppers to expect discounts year-round. 

Sales promotion example

Consider Sarah, the owner of a fictional bookstore and café in a suburban area. As BCFM approaches, she’s excited but nervous. Last year, the jump in online orders overwhelmed her as she struggled to keep track of inventory between her physical store and website.

This year for BFCM, Sarah runs a “Reader’s Delight” promotion. For 48 hours only, all books are 30% off, and every customer gets a free hot chocolate with an in-store purchase. 

The offer layers multiple promotion principles at once:

• Scarcity (48 hours only)
• Value (30% off)
• A free gift (hot chocolate with any in-store purchase)

Meanwhile, online orders start pouring in. Thanks to Shopify POS’s unified inventory system, Sarah can see real-time stock levels across both channels. When TheMidnight Library sells out online, the POS system automatically shows in-store availability, allowing online customers to reserve for in-store pickup. 

By Saturday afternoon, Sarah notices books from the Cheeky Mystery collection flying off the shelves. Using Shopify POS’s discount tools, she quickly creates a flash sale for this category that applies instantly both in-store and online. Here, urgency and category-specific relevance help maintain momentum.

On Cyber Monday, Sarah launches exclusive online deals. However, many customers still visit the store. Using Shopify POS, her staff can easily place online orders for VIP customers so they don’t miss out on web-only discounts.

Shopify’s unified POS system helped Sarah provide a seamless shopping experience, whether customers shopped online, in-store, or both. Real-time inventory management, flexible checkout options, and omnichannel promotions helped her business maximize sales (and minimize stress) during the year’s busiest shopping weekend. 

Together, these tactics show how the most effective sales promotions often layer multiple psychological triggers instead of relying on a single discount alone.