Updated November 2026
Short answer: Shopify's free shipping discount can be limited to customer segments, but it still makes every rate free and has no product, location or rate rules. RM: Advanced Free Shipping combines customer targeting with everything else, for example "VIPs get free Standard shipping on any order". Use Customer tag for signed-in customers, or Specific customer segments to include guests.
VIP or wholesale customers
Customer tag Contains VIP, then choose the rates and Free.

Tags only match customers signed in to their account at checkout. A guest has no tags.
Everyone except wholesale
Customer tag Does not contain Wholesale. Guests have no tags, so they qualify, and so does a wholesale customer who checks out as a guest or with another email.
First-order free shipping, including guests
Don't use Customer order count for this, because it only matches signed-in customers. Instead:
In the discount, under Customers, choose Specific customer segments.
Select Customers who haven't purchased. Shopify creates this segment for you.

Shopify matches segments by the email or phone number entered at checkout, so this works for guests too.
Returning or loyal customers
Customer order count Is at least 1 for returning customers, or 5 for loyal ones. Signed-in customers only, and test orders don't count.
VIPs always, everyone else over $100
Rule group 1: Customer tag Contains VIP
OR Rule group 2: Cart total Is at least 100
Good to know
Each Customer tag condition checks only its own tags. For "VIP but not Blocked", add Contains VIP and Does not contain Blocked to the same rule group.
Loyalty and wholesale apps that tag customers work with Customer tag, as long as the tag is on the customer's Shopify profile.
To test, sign in to a test customer account at checkout.
See Customer tag and customer order count.
Common questions
Does free shipping for tagged customers work at guest checkout?
No. Tags only match signed-in customers. Use a customer segment to include guests.
How do I give free shipping on a customer's first order?
Under Customers, choose Specific customer segments and select Customers who haven't purchased. It works for guests too.
Can I exclude wholesale customers from free shipping?
Yes, with Customer tag Does not contain Wholesale. Wholesale customers need to be signed in for it to exclude them.
Can VIPs get free standard shipping but pay for express?
Yes. Combine a Customer tag condition with Choose specific rates.