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Commerce marketingReviewed September 7, 2026

What is Markdown?

A markdown lowers a product's selling price, usually to respond to demand, inventory age, or a planned promotion.

Who this applies to#

  • Use a markdown when the product price itself needs to move down for a period or until changed again

What Markdown requires#

  • Record cost per item before judging whether a lower price still protects profit
Shopify

Shopify Smart Pricing separates a markdown price change from discount-code mechanics and uses cost per item to assess profit

What this does not require#

  • A markdown does not require a coupon code or customer-specific eligibility rule

Common mistakes#

  1. Calling every coupon a markdown
  2. Reducing price without checking product cost

Markdown checklist#

  • Confirm current price
  • Confirm cost
  • Set the lower price
  • Plan the exit condition

Commonly confused with#

Official sources#