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Fixed Amount Discount — $5 Off Reward Example

Let customers redeem points for a set amount off their order. A worked 500-points-for-$5 example, every field explained, and why a fixed cost is easier to plan.

Points for a set amount off. The reward that costs you exactly what it says, which makes it the easiest one to build a program around.

Where: Settings → Rewards → Create reward → Fixed Amount Discount


What it does

A customer spends points and receives a Shopify discount code for a fixed amount off their order — $5, $10, $25.

Unlike a percentage, the cost to you is known in advance. That’s why most programs use a fixed amount as their anchor reward: it’s the one that establishes what a point is worth, and every other reward gets priced against it.


The fields

Section Field Notes
Rule Name Rule Name Required. E.g. $5 off — 500 points.
Reward Configuration Points to Redeem Required.
Reward Configuration Discount value Required. The amount off, in your store’s currency.
Reward Configuration Minimum Order Value Optional floor.
Reward Configuration Discount Code Prefix The prefix on generated codes.
Discount Scope Everything / collections / products Collections or products, never both.
Reward Expiration Settings Coupon Expiry, and whether to return the points This type has its own expiration section.
Redemption Limits Maximum uses per customer + Frequency
Order Type Eligibility One-time orders, or subscriptions too
Discount stacking Order / Product / Free shipping discount Nothing stacks unless ticked.
Rule Status Active / Disabled

Worked example: $5 off for 500 points

This is the reward that defines your points economy. Paired with a 1-point-per-dollar earn rule, it sets the exchange rate at 100 points = $1, which is a 1% program.

  1. Go to Settings → Rewards and click Create reward.
  2. Choose Fixed Amount Discount.
  3. Fill in:
Field Value
Rule Name $5 off — 500 points
Points to Redeem 500
Discount value 5
Minimum Order Value 25
Discount Code Prefix POINTS5
Discount Scope Everything in the store
Coupon Expiry 60 days
Return points back after expiration ✅ on
Redemption Limits Maximum uses blank, Frequency Unlimited
Discount stacking (leave all unticked)
Rule Status Active
  1. Save.

Why each number is what it is

500 points for $5 fixes the exchange rate at 100 points to the dollar. Every reward you build afterwards should respect it — a $10 reward costs 1,000 points, a $25 reward 2,500. The moment one reward breaks the rate, customers find it and only redeem that one.

Minimum Order Value $25. Five dollars off a $6 item is effectively free product, and it attracts exactly the shopper you don’t want. Setting the floor at five times the discount value is a reasonable rule of thumb.

Coupon Expiry 60 days. Longer than the percentage reward, because a fixed-value code is a known, small liability. Long enough that a customer who redeems just after ordering still gets to use it next time.

Unlimited redemptions. The cost is fixed and predictable, so there’s no need to cap frequency — a customer redeeming ten times has earned 5,000 points, which is $5,000 of spending.


Building the ladder

One reward is a program a customer reaches once. Three is a program they stay in:

Reward Points Effective rate
$5 off — 500 points 500 100 pts = $1
$10 off — 1,000 points 1,000 100 pts = $1
$25 off — 2,500 points 2,500 100 pts = $1

Consistent rate throughout, so nothing is a trap and nothing is a bargain. Customers self-select: some cash out immediately, some save. Both are fine, and the cost to you per point is identical either way.

Some programs deliberately make the top rung slightly better — $25 off for 2,200 points — to encourage saving. That’s a choice, not a mistake, as long as it’s the only inconsistency.


Tips

  • Set this reward first. It defines the rate. Percentage rewards, free shipping and free products should all be priced against it.
  • Say both halves in the name. “$5 off — 500 points” tells a customer the price and the prize at a glance.
  • Keep the ladder’s rate flat unless you’re deliberately rewarding savers.
  • Use the prefix to trace redemptionsPOINTS5 codes are easy to spot in Shopify’s order list.

FAQ

What’s the difference between this and a Variable Discount?

A Fixed Amount Discount is a set value for a set number of points. A Variable Discount lets the customer choose how many points to spend, scaling the discount with it.

Can the discount exceed the order value?

Set a Minimum Order Value so it can’t be redeemed against a basket smaller than the discount.

Do unused points come back?

Only if Return points back to customer after expiration is ticked in the Reward Expiration Settings.

Can I offer this to one collection only?

Yes, via Discount Scope — but remember it’s collections or products, not both.


Next steps

Common questions

What's the difference between this and a Variable Discount?
A Fixed Amount Discount is a set value for a set number of points. A Variable Discount lets the customer choose how many points to spend, scaling the discount with it.
Can the discount exceed the order value?
Set a Minimum Order Value so it can't be redeemed against a basket smaller than the discount.
Do unused points come back?
Only if Return points back to customer after expiration is ticked in the Reward Expiration Settings.
Can I offer this to one collection only?
Yes, via Discount Scope — but remember it's collections or products, not both.