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1. Promotions>>Shopping Cart Price Rules. Add new rule.
2. Rule name - for example 20off. Description - what you want. Status - ACTIVE. Customer Groups - NOT LOGGED IN (if you want customers who are not logged in to be able to use it), general. Coupon code - 20off (f. example). The rest is up to you.
3. On the left-hand side, click “ACTIONS”
4. Apply - choose “Percent of product price discount” and under, in “discount amount” enter 20%.
Does this work now?