---
title: "What is First-order discount? | Chargezen"
description: "A price cut on a customer's first purchase, or a subscriber's first order, meant to win them over. Later orders are charged at the regular price."
url: "https://chargezen.com/glossary/first-order-discount"
lang: "en"
---

Canonical URL: https://chargezen.com/glossary/first-order-discount

# First-order discount

First-order discount

E-commerce

A price cut on a customer's first purchase, or a subscriber's first order, meant to win them over. Later orders are charged at the regular price.

## What is First-order discount?

First-order discounts lower the risk of trying something new. They show up as welcome codes ("15% off your first order"), sign-up offers for joining an email or text list, and subscription intro prices ("first box 50% off"). **The trade-off for subscriptions.** A deep first-order discount brings in more sign-ups, but some of those people only wanted the deal. They cancel before the second order, and you paid for the discount without getting a subscriber. A smaller discount usually brings in fewer, steadier subscribers. **Be clear about the next price.** Shoppers should see what renewals will cost before they pay: "First box $15, then $30 every month." Many auto-renewal laws expect the renewal price to be shown clearly, and surprised subscribers cancel and dispute charges. **Ways to structure it:** - A percentage or dollar amount off the first order only. - A free gift or free shipping on the first order instead of a price cut. - A smaller ongoing subscribe-and-save discount instead of a big one-time cut. - A discount spread over the first two or three orders, which rewards staying. **Measure the right thing.** Judge the offer by how many discounted subscribers reach their third order, not by sign-ups alone. **How Chargezen handles it:** Chargezen Subscriptions applies discounts to subscription plans, and a workflow can add or remove a discount on a subscription after a given order.

## Example

A meal kit brand tested 50% off the first box against 20% off. The 50% offer won 40% more sign-ups, but fewer of them paid for a second box, so the 20% offer brought in more third orders.

## Why First-order discount Matters

It's one of the strongest levers for new sign-ups, and one of the easiest ways to fill a subscription program with people who leave.

## Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

[View Full Glossary](https://chargezen.com/glossary)