Karlie here from the Shopify Guru Team! Although the type of functionality you're looking for with applying discounts to shipping isn't available in Shopify yet, I would be happy to offer you some workarounds that could work for you.
My first suggestion would be to use an app that would allow you to set specific shipping rates and rules to your shop. I had Advanced Shipping Rules or Better Shipping in mind - which would allow you to set rules for your shipping depending on different aspects of your website. If you were to use this method, you wouldn't have discount codes for shipping, but instead automatic discounted shipping rates that you would set up by using the app.
Another option would be to use the Discount section of your Shopify Admin to create percentage or price based discounts on your products. I know this isn't exactly what you're looking for, but you can still give the customer a percentage off of their products instead of shipping. If you're interested, be sure to check out our Discount Guide for more information on how to use the Discounts section of your Shopify Admin.
I understand that the feature you're looking for isn't available within the Shopify Admin, so I would be glad to bring this up to the appropriate team here for you so we can look into making Shopify a better platform for future merchants.
I hope this helps, but if you have any further questions - be sure to ask and I would be happy to help!
I am also interested in this functionality. We currently offer free shipping on our products (meaning the cost is built into the price.) we would like to make a shipping rule that gives a slight discount to local customers who want to pick up their order from our shop.
You offer a flat rate dollar amount shipping rule which we can make negative ie -$10. What we need is an order percentage shipping rule so we can give an incentive to customers to pick up .
Example rule - “customer pickup” -8%.
i hope this makes sense. The e-commerce platform we are leaving to join Shopify allows this.
Hello, I think this a basic functionality that should be added. Not all shipping discounts imply free shipping and in most cases the profit margins for shipping and products are different, which is why you can't apply the discount to the product. Shopify should definitely have a shipping discount wheere an amount or percentage is used.