// GMC add-on setup guide

How to set up Automated Discounts in Google Merchant Center

Automated Discounts uses Google AI to temporarily lower prices on individual products to attract more customers. You set a floor (minimum profit margin) and Google decides which products to discount and by how much. Works best on stores with healthy 20%+ margins.

// Add-on
Automated Discounts
// Impact
+5–15% gross profit
// Setup time
6 steps · ~15-30 min
// Direct link
Open in GMC ↗

Requirements

  • ✓ Verified Merchant Center account
  • ✓ Active Shopping campaigns with sufficient historical data
  • ✓ Products with adequate profit margin to allow discounts
  • ✓ Optional: Cost of goods sold (COGS) uploaded via feed for accurate margin control

Step-by-step setup

  1. 1
    Enable Automated Discounts
    Merchant Center → Growth → Manage programs → Automated Discounts → "Get started".
  2. 2
    Upload cost of goods (optional)
    Add cost_of_goods_sold attribute to your primary feed — Google uses this to protect your margins.
  3. 3
    Set optimization goal
    Choose "Maximize revenue" (typical), "Maximize profit", or "Balance revenue and profit".
  4. 4
    Set discount limits
    Maximum discount % per product (e.g., "cap at 25% off") and floor price if desired.
  5. 5
    Choose eligible products
    All products, or filter by product type, brand, or custom label. Exclude items you never want discounted.
  6. 6
    Wait for AI learning
    Google needs 14-21 days of data to start optimizing. First discounts appear on high-traffic products.

Common issues + how to fix

⚠
Discounts eating margin
Set a lower "maximum discount" cap or upload accurate cost_of_goods_sold data.
⚠
No discounts happening
Requires sufficient Shopping traffic + conversion volume. Small stores may not qualify.
⚠
Bad interaction with Promotions
If you already run Promotions, Automated Discounts may not double-stack. Test carefully.

Related guides

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