Free Product — Loyalty Reward Example

Give something away rather than take money off. The most memorable reward, and the one with a trap in it worth understanding before you save.

Where: Settings → Rewards → Create reward → Free Product

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What it does

A customer spends points and receives a code that gets them a specific product free.

How it actually works, and why that matters. The reward mints as a fixed amount off, priced at the product you chose. That mechanism is invisible in the happy case — and it’s the source of the one real gotcha, below.

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The fields

Section	Field	Notes
Rule Name	Rule Name	Required. E.g. Free tote bag — 1,200 points.
Reward Configuration	Points to Redeem	Required.
Reward Configuration	Product to give away	Required. Chosen with Shopify’s product picker. You may optionally pin one variant.
Reward Configuration	Discount Code Prefix	The prefix on generated codes.
Reward Configuration	Coupon Expiry	Days before the code stops working.
Reward Configuration	Return points back after expiration	Refunds unused points.
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

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The variant trap

If the product you choose has variants at different prices, and you don’t pin one, the reward is worth the most expensive variant — whichever the customer actually picks.

The classic case: a product record holding a $25 beanie and a $60 hoodie. Leave the variant unpinned and a customer redeeming for the beanie still gets a code worth $60 — $35 of which they can spend on something else.

Two safe ways to author this reward:

1. Pin one variant. The picker lets you select the exact variant, and then the reward’s value and the item given away are the same thing. This is the right answer whenever prices vary.
2. Choose a product whose variants are all the same price. A t-shirt at $30 in five sizes is fine unpinned — any variant is worth the same.

Only one variant can be pinned, for exactly this reason: two pinned variants at different prices would leave the same question unanswered.

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Worked example: a free tote bag for 1,200 points

The tote retails at $18 and comes in one option, so there’s no variant question.

1. Go to Settings → Rewards and click Create reward.
2. Choose Free Product.
3. Fill in:

Field	Value
Rule Name	Free tote bag — 1,200 points
Points to Redeem	1200
Product to give away	Canvas Tote Bag (picked from your catalogue)
Discount Code Prefix	FREETOTE
Coupon Expiry	45 days
Return points back after expiration	✅ on
Redemption Limits	Maximum uses 1, Frequency Year
Rule Status	Active

4. Save.

Why each number is what it is

1,200 points for an $18 product. At 100 points = $1 the strict rate would be 1,800. Pricing it below that is deliberate: a physical item costs you wholesale, not retail, and the reward is worth more to the customer than the equivalent money off. You’re trading a $6 cost for a reward that reads as $18.

Once a year. A free-product reward is a moment, not a habit. It also means you can forecast how many totes you need.

45-day expiry. Long enough to reach their next order, short enough to keep your stock forecast honest.

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Tips

• Pin the variant whenever prices differ. It’s the single most important field on this form.
• Pick something with a good cost-to-perceived-value ratio — branded merch, a sample size, an accessory. Not your bestseller.
• Keep it in stock. A reward pointing at a sold-out product is a bad experience you’ll hear about.
• Make it the top rung. A free product works best as the thing customers save toward, above your discount ladder.
• Review it seasonally. Unlike a $5 discount, this reward names a specific product — one you’ll eventually stop selling.

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FAQ

Can I offer a choice of free products?

Not within one reward. Create several Free Product rewards, one per item, and let customers pick which to redeem.

What if the product’s price changes?

The reward is valued from the product you selected, so a price change is reflected in what the code is worth. Check your points price still makes sense after repricing.

Can I pin more than one variant?

No — one. Two variants at different prices would reintroduce exactly the ambiguity pinning exists to remove.

Does the customer still pay shipping?

Yes, unless they also have a free-shipping reward. This reward covers the product’s value.

What if the product is out of stock?

The code still exists but the customer can’t complete the order. Disable the reward while the product is unavailable.

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Next steps

• Next: Setting Up VIP Tiers — reward status, not just spending.
• Related: Free Shipping · Program setups that work