How to Create a Coupon Code in WooCommerce? (2025)

Last Updated on December 3, 2025 by Himanshu Rawat

Discounts are one of the most powerful ways to boost sales, reward loyal customers, and encourage first-time shoppers to complete their purchase. WooCommerce makes it incredibly easy to create coupon codes, no coding required. Whether you want to offer percentage discounts, fixed-amount deals, free shipping, or automatically applied coupons, WooCommerce gives you all the flexibility you need.

In this blog, you’ll learn exactly how to create a coupon code in WooCommerce, plus best practices and ideas to maximize conversions.

Why Use Coupons in WooCommerce?

Coupons are a powerful way for WooCommerce stores to attract new customers, encourage repeat purchases, and increase revenue. WooCommerce also leads global discount usage, with over 1,500 stores, more than 41% of coupon-enabled shops using coupons to boost performance.

Offering coupons helps you:

• Attract and convert price-sensitive shoppers, as 32% of online customers search for a coupon every time they make a purchase.
• Increase customer loyalty, with surveys indicating 41% of shoppers become more loyal to stores that provide coupons.
• Boost average order value, as customers using coupons spend on average 24% more than those who don’t and leading to a 26% higher average order value.
• Drive higher conversion rates, as well-planned coupon campaigns can lead to a dramatic boost in conversions, sometimes even outperforming regular promotional efforts by a wide margin.
• Encourage repeat purchases, as 85% of shoppers say they are “more likely to shop again” from a retailer that offers coupons.
• Reduce cart abandonment by motivating hesitant customers to complete their purchases when a coupon is available.
• Compete more effectively during peak sales periods and events, where coupon marketing is a prime strategy for boosting sales and acquiring new buyers.

How to Create a Coupon Code in WooCommerce

WooCommerce includes a built-in coupon management system. Here’s how to set up a coupon from scratch.

Step 1: Enable Coupons in WooCommerce Settings

Before creating your first coupon, make sure the coupon feature is enabled in your WooCommerce store.

• Go to your WordPress Dashboard.
• Navigate to WooCommerce > Settings > General.
• Scroll down and check the box Enable the use of coupon codes.
• Optionally, check Calculate coupon discounts sequentially if you want multiple coupons applied one after another on discounted prices rather than the full price.
• Save your settings.

Step 2: Access the Coupons Section

• From the WordPress Dashboard, go to WooCommerce > Marketing > Coupons.
• If you have no coupons yet, you will see a prompt to create your first coupon. Otherwise, click the Add coupon button at the top.

Step 3: Create Your Coupon Code

On the coupon creation screen:

• Enter a Coupon code, which is what customers will type at checkout to get the discount. This can be something meaningful and easy to remember, like SUMMER20 or WELCOME10.
• Or click Generate coupon code to automatically create a random code.
• Optionally, add a Description for internal use to remember the coupon’s purpose.

Step 4: Configure Coupon Discount Details

In the Coupon data section, under the General tab:

• Choose a Discount type:
  • Percentage discount (e.g., 10% off)
  • Fixed cart discount (fixed amount off the total cart)
  • Fixed product discount (amount off specific products)
• Enter the Coupon amount (e.g., 15 for 15% or $15).
• Check if Allow free shipping if this coupon also grants free shipping.
• Set an optional Coupon expiry date to limit its validity.

Step 5: Set Usage Restrictions 

Under the Usage restrictions tab, you can:

• Set a Minimum spend or Maximum spend for the coupon to apply.
• Restrict coupon use to specific products or categories.
• Exclude certain products or categories from the coupon.
• Limit usage to individual use only (no other coupons combined).
• Specify allowed email addresses if the coupon is for certain customers.

Step 6: Set Usage Limits (Optional)

In the Usage Limits tab, you can:

• Limit the number of times this coupon can be used overall.
• Limit usage per customer to prevent abuse.
• Set usage limits per user role if needed.

Step 7: Publish and Test Your Coupon

• Once configured, click the Publish button to activate the coupon.
• It’s best practice to test your coupon by placing a test order in an incognito browser and applying the code at checkout to ensure it works as expected.

How Customers Redeem the Coupon

Customers can redeem a coupon in a few simple ways:

• On the Cart page: They can enter their coupon code in the Apply Coupon field before proceeding to checkout.
• During Checkout, Shoppers can also enter the code on the checkout page, right before completing the order.
• Automatically: If your store uses auto-apply plugins or smart rules, eligible coupons will be applied without the customer needing to type anything.

Once a coupon is entered or triggered, WooCommerce automatically checks all conditions, such as product eligibility, usage limits, or minimum order amount, and applies the discount instantly if everything matches.

WooCommerce Coupon Best Practices for Higher Conversions

• Use clear, descriptive coupon codes. Simple and relevant codes like FALLSALE20 are easier for customers to remember and enter correctly.
• Set realistic expiry dates. This creates urgency, but avoids too short a timeframe that discourages use.
• Define coupon goals. Decide if the coupon’s purpose is to attract new customers, increase average order value, or clear inventory.
• Limit coupon usage. Control how many times a coupon can be used per customer or overall to avoid excessive discounting.
• Communicate terms clearly. Make sure customers understand how and when the coupon applies.
• Enhance your coupon strategy further by using WooCommerce automation and custom fields to personalize offers and streamline your marketing efforts.

Final Thoughts

Creating coupon codes in WooCommerce is one of the simplest and most effective ways to increase sales, reward loyal customers, and attract new buyers. With WooCommerce’s built-in coupon system, you have full control over discount types, usage limits, restrictions, and automation, allowing you to run highly targeted and profitable promotions.

When used strategically, coupons can boost conversions, reduce cart abandonment, and enhance the overall shopping experience. Whether you’re offering seasonal discounts, new-customer rewards, or limited-time deals, smart coupon management can turn occasional visitors into repeat customers and consistent buyers.

Frequently Asked Questions 

1. Can I limit a coupon so only specific customers can use it?

Yes. WooCommerce allows you to restrict coupons by specific email addresses or user roles, making it ideal for VIP customers or exclusive offers.

2. How do I prevent customers from using multiple coupons at once?

While creating the coupon, enable “Individual use only.” This ensures no other coupon can be applied alongside it.

3. Can I apply coupons automatically without customers entering a code?

WooCommerce doesn’t do this by default, but you can enable auto-apply functionality using plugins like Advanced Coupons, WooCommerce Smart Coupons, or similar tools.

4. Why isn’t my coupon working at checkout?

Common reasons include:

• Not meeting minimum/maximum spend
• Product/category exclusions
• Coupon expiration
• Customer usage limit reached
• The coupon is not allowed with other discounts
  Review the Usage Restrictions and Usage Limits tabs to troubleshoot.

5. Can I track how well my coupon performs?

Yes. WooCommerce provides basic reporting on coupon usage inside WooCommerce → Reports → Coupons. You can also use analytics plugins for deeper insights into revenue generated, conversions, and user behavior.