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Free Gift With Purchase on Shopify: Setup and Margin Math

TL;DR

To offer a free gift with purchase on Shopify without an app, create a Buy X get Y discount, set Customer buys to a minimum quantity or a minimum purchase amount, and set the gift under Customer gets at Free. Shoppers must add the gift to the cart themselves. An app such as Sam Bundles can attach the gift to a quantity break tier, so it goes into the cart with that tier.

A free gift with purchase (GWP) rewards a bigger order with an extra product instead of a lower price. On Shopify you can run it with a native Buy X get Y discount, or attach the gift to a quantity break tier with an app.

This guide covers which gift to pick, the margin math, both setups, and the checks to run before launch. For how gifts fit next to quantity breaks, BOGO and fixed bundles, see our product bundles guide.

What is a free gift with purchase?

A free gift with purchase is a product you add to an order at no charge when the customer meets a condition. The condition is what makes it a sales tool. It asks the shopper to buy a little more to unlock the gift.

There are three common versions:

VersionConditionExampleGood for
Gift with a productBuy a set productBuy the serum, get a travel pouchLaunches, hero products
Gift on a quantity tierBuy 3 or more of a productBuy 3 candles, get a wick trimmerConsumables, gifting items
Gift over a spend thresholdSpend over a set amountSpend $75, get a toteRaising order value across the store

A gift is different from BOGO. With BOGO, the free item is usually more of the same product. With a GWP, the gift is usually a different, cheaper product. Our BOGO offer ideas post covers the “more of the same” options.

What does a free gift cost you?

A gift costs you its product cost, plus any extra packing and shipping weight. It does not cost you its retail price. That gap is why a gift can feel more generous than a discount while costing less.

Here is an example with made-up numbers. Say a candle sells for $22 and costs you $8. A wick trimmer retails at $12 and costs you $3:

OfferCustomer paysYour costProfit per order
1 candle$22$8$14
3 candles at 15% off$56.10$24$32.10
3 candles at full price + free trimmer$66$27$39
3 candles at 10% off + free trimmer$59.40$27$32.40

In this example, the gift tier keeps more profit than the 15% tier. The shopper still sees $12 of value. Run the same table with your real costs, including packaging and the extra shipping weight.

For the full discount math, see bulk discount margin math.

Which gift should you give?

The gift has to be something your customers want. A gift that sits in a drawer adds cost and does nothing for the offer. Good gifts tend to share a few traits:

  • Related to the main product. A trimmer with candles, a pouch with skincare, socks with shoes.
  • Low cost, clear value. A visible retail price helps shoppers see what they get.
  • Small and light. It should fit in the same box without moving the order to a higher shipping rate.
  • In stock for the whole offer. Count your gift stock before you announce the deal.
  • Not your best seller. Giving away a product people already pay for trains them to wait for the offer.

Samples and travel sizes work well, too. They cost little, and a shopper who likes the sample may buy the full size later.

How do you set up a free gift with purchase on Shopify without an app?

Use a native Buy X get Y discount. The steps follow Shopify’s help center:

  1. In your Shopify admin, go to Discounts and click Create discount.
  2. Choose Buy X get Y.
  3. Pick a method: a Discount code or an Automatic discount.
  4. Under Customer buys, choose Minimum quantity of items (for “buy 3, get a gift”) or Minimum purchase amount (for “spend $75, get a gift”). Pick the qualifying products or collections.
  5. Under Customer gets, set the quantity to 1, pick the gift product, and choose Free.
  6. Set Eligibility, usage limits, Combinations and Active dates, then click Save.

What are the limits of a native gift discount?

Shopify lists a few that matter for gifts:

  • The gift is not added for the shopper. Shopify says “the free or discounted ‘get’ item is never automatically added to the cart.” If the shopper doesn’t add it, they pay full price and get nothing.
  • Sold-out gifts stop the deal. Once the free items are sold out, shoppers can’t use the discount.
  • Not on the post-purchase page. Buy X get Y discounts made in the admin don’t apply there.

You also need to explain the offer yourself, in a banner, the product description or an email. Many stores list the gift as a product and add a note like “Add it to your cart, it’s free when you qualify.”

How do you add a free gift to quantity breaks with Sam Bundles?

Sam Bundles, our bundle app, puts the gift on a quantity break tier on the product page. When a shopper picks that tier, the gift goes into the cart with it. Other apps work in similar ways, so use this as a checklist.

Step 1: Turn on the app embed

Install Sam Bundles and open it. In the Setup guide, open Enable app embed and click Active app embed. Switch on Sam Bundles under App embeds in the theme editor and click Save. The install guide shows each screen.

Step 2: Start from the free gift template

On the app home, scroll to Offers and click Create new offer. Pick a Brand color, then click Choose on Quantity breaks with a free gift. The template turns the gift on for the last bar, so you only need to pick the gift product.

Step 3: Choose the products and name the offer

Under Products, apply the offer to all products, selected products or selected collections. Use Select exceptions to leave items out.

In Settings, set the Name (only you see it), the Block title shown above the bars and the Discount name shown in the cart and at checkout.

Step 4: Set the bars and the gift

Open each bar and set the Quantity and Price: Full price, Percentage off, Amount off or Fixed price. Then, in the bar that should earn the gift, click Add free gift and pick the product.

A gift on the top tier gives shoppers a reason to step up without a deeper price cut. You can keep a small discount on the middle tier and put the gift on the top one. Our post on how many quantity break tiers helps you choose the steps.

Step 5: Add-ons, schedule and combinations

Switch on add-ons if they help, such as Badges or a Savings summary. For a limited-time gift, switch on Schedule and set a start and end date.

Under Advanced, choose which discounts the offer combines with and which customers can use it. The offer settings guide covers both. Click Save to publish.

Customers don’t need a code. The gift is discounted to free automatically in the cart and at checkout. The full field list is in the quantity breaks guide.

One limit to know: Sam Bundles ties the gift to a quantity tier on a product. For a store-wide “spend $75, get a gift”, use the native Minimum purchase amount setup above.

Free gift, bigger discount or BOGO: which should you use?

Each one rewards a bigger order in a different way:

OfferWhat shoppers seeWhat it costs youBest when
Free gift with purchaseAn extra productThe gift’s product costYou have a cheap, wanted add-on
Deeper tier discountA lower price per itemThe discount on every unitShoppers compare prices closely
BOGOMore of the same productA full extra unitClearing stock of one product

You can test them against each other. Run the gift tier for two weeks, then a discount tier at a similar cost to you, and compare profit per order. Our quantity breaks guide covers the discount side.

What should you test before you launch?

Place a test order before you promote the offer:

  1. Pick the gift tier on a phone. Confirm the gift lands in the cart at $0.
  2. Pick a tier without a gift. Check that no gift is added.
  3. Remove the main product. See what happens to the gift, so you know what a shopper could do.
  4. Try a discount code on top. It should stack, or not, as you set it.
  5. Check the order in your admin. Your team should see the gift as a line to pick and pack.
  6. Check the box. Make sure the gift fits and doesn’t push the parcel into a higher shipping rate.
  7. Check other languages. If you sell in several, translate texts like Free gifts and FREE in translations.

How do you keep a free gift offer honest?

A gift offer works only if shoppers trust it. In the US, the FTC’s guide on the word “free” sets a few rules worth knowing (16 CFR 251.1). This is general information, not legal advice:

  • Keep the regular price. The offer should be based on the regular price of the item the shopper must buy. Don’t raise it to pay for the gift.
  • State the conditions up front. Terms should be set out “clearly and conspicuously at the outset of the offer.” A footnote with an asterisk isn’t enough.
  • Don’t run it all year. The guide says a product “should not be advertised with a ‘Free’ offer in a trade area for more than 6 months in any 12-month period.”

The same goes for urgency. If a countdown says the gift ends Sunday, end it Sunday. Our countdown timer guide explains how to keep timers honest.

How do you know the gift worked?

Compare the offer period with a normal period of the same length. Look at units per order, average order value and profit per order after the gift’s cost.

In Sam Bundles, the dashboard shows additional revenue, orders and AOV increase, plus a results row for each offer. If shoppers rarely pick the gift tier, try a gift they want more, or move it down a tier. If they pick it but profit per order drops, choose a cheaper gift.

Frequently asked questions

Can you offer a free gift with purchase on Shopify without an app?

Yes. Create a Buy X get Y discount under Discounts. Under Customer buys, choose a minimum quantity of items or a minimum purchase amount, then pick the gift under Customer gets and set it to Free. Shopify never adds the gift to the cart, so shoppers must add it themselves.

How do I run "spend $75, get a free gift" on Shopify?

Use a native Buy X get Y discount and choose Minimum purchase amount under Customer buys. Enter your threshold, pick the qualifying products or collections, then set the gift under Customer gets at Free. Tell shoppers to add the gift themselves, since Shopify will not add it.

Is a free gift better than a bigger discount?

Not always. A gift costs you its product cost, not its retail price, so it can feel generous while costing less than a deeper price cut. It only works if shoppers actually want the gift. Run the margin math with your own costs before you choose.

What happens if the free gift sells out?

With a native Buy X get Y discount, Shopify says shoppers cannot use the discount once the free items are sold out. Whatever tool you use, track gift stock and end or change the offer before it runs out.

Can I add a free gift to a quantity break tier?

Yes, with an app. In Sam Bundles, open a bar in a quantity breaks offer and click Add free gift to give a free product with that tier. The Quantity breaks with a free gift template starts with the gift turned on for the last bar.

Sources

  1. Shopify Help Center: Buy X get Y discounts
  2. 16 CFR 251.1: Guide Concerning Use of the Word "Free" (Cornell Legal Information Institute)

Part of our guide: Product bundles →

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