Why are B2B merchants so obsessed with volume-based discounts? Not only them but Shopify customers also enjoy these offers on display. A study of Marketing and Logistics found that discounts for bulk orders have a positive impact on buyers. People love to buy in volumes to save more. This is why sellers love offering such discounts to increase revenues and customer loyalty.
Do you want to learn how to make the most out of mass purchase deals? Then welcome to our blog where we share the easiest hacks to apply volume discounts. We will learn its meaning, its benefits for sellers, buyers, and the e-commerce business, how we use it in the e-commerce industry, and how we set it up on Shopify. We also discuss some common mistakes to avoid. So, get ready to boost your sales!
Volume-Based Discounts for Shopify Stores
Volume-Based Discounts in the E-Commerce Industry
Configuring Volume-Based Discounts on Shopify
Mistakes to Avoid
FAQs
Volume-based discounts offer reduced prices to buyers who purchase in bulk. It is a powerful strategy to reward your customers and improve customer retention. Your Shopify store becomes more popular as you gain more loyal customers. Hence, your sales increase and your e-commerce business becomes a success.
Such volume discount pricing strategies benefit both buyers and sellers. Customers are happy to see reduced prices and sellers are glad to see repeat purchases due to discounts. Customers seek better deals for higher quantities and such offers cater to their needs.
BOGO deals are popular volume-based discounts where customers get an item free (or at a discounted price) after buying a certain quantity. It will encourage your customers to buy in larger numbers, thus increasing your store’s AOV. For example, buy one Spongebob shirt, and get one Spongebob cap free.
Here you apply a fixed discount percentage on all bulk purchases above a certain quantity. It is one of the most popular discount strategies to attract customers. For example, “Buy 5 or more items to get 20% off.”
Shopify tiered discounts on Shopify follow a tiered structure where different discounts are set for different quantities purchased. As quantities bought increase, discount also increases. For example, 1 – 5 items: 5% off, 6 – 10 items: 10% off, and 11+ items: 15% off.
Such discounts are applied based on the total amount bought over a certain period like monthly or annually instead of individual orders. For example, buy 100 items in a month to get 10% off on your next order.
It is applicable only if the customer meets the minimum order quantity. E.g. “Buy 30 items or more to get 20% off.”
This type of discount is offered when certain items are bought together in bulk. For example, buy 3 packs of pencils ( each with 10 pencils) and get 30% off.
Finally, we have loyalty volume discounts that will reward loyal customers. It is based on their past bulk purchases in a loyalty program. For example, If you have purchased 400 units in the last 5 months, then you qualify for a 20% discount on your next bulk order of 50 units.
Now that you know all types of volume-based discounts you should have no problem creating a variety of offers. Customers love it when you display different kinds of creative offers now and then. Let us now learn how useful these discounts are in the e-commerce industry.
So, what is the role of volume discounts in the e-commerce industry? It is a very important role that helps the industry earn huge amounts of revenue every year. So, how does that happen? Let us see below.
Discounts for large orders are what attract customers to your Shopify store. They visit you the first time, buy in bulk for the deal, become happy with the reduced prices, and visit you again to buy some more for more discounts. You improve customer retention by building stronger bonds with them through attractive offers. Thanks to these deals, they can save more by buying more.
This is another strong reason to use volume-based discounts. It is an effective strategy to clear out your store’s inventory. It frees up storage space by helping you move unsold products faster.
Volume discounts are often seen to boost sales and average order values. You use mass purchase deals encouraging customers to spend more. They buy more to unlock savings, hence increasing your store’s AOV.
As you can see, mass purchase deals have a positive effect on the e-commerce industry. Let us learn how to set up volume discount pricing Shopify offers so that you can maximize profits.
We will set up a simple BOGO deal using some basic Shopify features.
1. First, go to your Shopify admin page and select Discounts on the left side. Then select “+Add discount” on the upper right side.
Shopify Admin Discounts
2. Select “Buy X Get Y” from the options.
BOGO
3. We then name the discount code.
Discount code for BOGO deal
4. We then fill up the rest of the boxes with values according to your preferences.
BOGO settings
5. We then decide whether our buyers want to have the get-one product for free or at a discounted price.
BOGO free or discounted
6. Now set customer eligibility and maximum discount uses. You can combine this BOGO volume discount type with other discounts using the Combinations section.
BOGO customer eligibility and maximum discount uses
7. We now get a summary of our BOGO volume discount.
BOGO summary
Volume discount Shopify apps are powerful tools to implement automatic discounts. This reduces manual work and ensures a smooth shopping experience. Automatic discounts also reduce human error and save you time to focus on other important tasks.
Shopify volume discount apps like DiscountRay will make it super easy for you to set up offers on your Shopify store. Use automation to make the process fast, easy, and error-free.
Below is a simple guide on how to use the app for a smooth discounting experience.
DiscountRay Dashboard
2. Use the “Create new” button to create a new offer.
DiscountRay Create New Option
3. Choose any of the two options below according to what suits your Shopify store best. Here, we select “Variants discounted price.”
DiscountRay Options
4. We now fill up the details as shown below and create a new variants discounted price offer.
Variants discounted price setting – 1
5. As you can see, you can choose a discounted price for every product variant. Select however you want to display these promotions at your store.
DiscountRay Variants Discounted Price setting – 2
After you configure the customer eligibility, you save the settings and select the live view. The cart page displays the discount that you have just configured.
DiscountRay Variants Discounted Price Live View
Hence, such third-party discount apps make it easier to set up and display offers in whichever way you like. Custom offers that can win over your buyers are now possible thanks to apps like DiscountRay.
Listen to your customers to understand which discounts they value most. Take notes and observe what kind of discounts impress them the most. Discounts that sell no products are of no use.
Excessive discounts can reduce profits. Ensure your margins remain sustainable. Do not go overboard with these offers. Create a plan and use various strategies to sustain profitability.
Make your discount rules simple and easy for customers to understand. Complex displays confuse buyers and you end up not selling a single item. Make sure that your displays of deals are easy to understand and at the same time, look attractive.
Volume-based discounts are a proven way to increase sales and build loyalty. By offering discounts for bulk purchases, you create value for customers and drive business growth. Use tools like Shopify apps to simplify the process and maximize efficiency.
Start experimenting with volume-based discounts today. They’re not just a volume discounting pricing strategy—they’re a way to grow your e-commerce store sustainably. Ready to boost your sales? Take the first step now and see the results!
Volume-based discounts reduce prices for larger purchases to encourage bulk buying.
They increase sales, clear inventory, and boost customer loyalty.
It is a pricing model where discounts increase with larger order quantities.
Apps like DiscountRay are helpful for volume discounts. It has some advanced features to help you customize your offers.
Yes, Shopify apps allow automated discounts based on quantity thresholds.
Tiered discounts increase with quantity, while flat discounts offer fixed reductions.
Yes, they are especially effective for bulk-buying B2B clients.
Set discounts that balance customer savings and profit margins. You need to make some calculations to ensure you do not over-discount.
Yes, they create value and encourage repeat purchases.
The biggest mistake is to create confusing discount structures that customers cannot easily understand.
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