Offering discounts is a tried-and-true method for attracting customers and boosting sales for e-commerce merchants. However, one particular type of discount, called a volume discount, always helps merchants get bulk orders from their customers and increases the store's average order value (AOV). This helps them clear their inventory faster and get more repeat orders if customers are satisfied with the fulfillment. This approach works well for both B2B and B2C businesses, as it provides customers with savings and allows businesses to sell more in a single transaction.
Setting up volume discounts on a Shopify store is a great way to increase store sales and at the same time also improve customer loyalty. Whether you're looking to offer tiered pricing or discounts for specific product groups, Shopify offers a variety of tools and apps to make the process easy. In this guide, we'll explore how volume discounts work and how you can implement them in your Shopify store to boost sales and reward loyal customers.
What is a Volume Discount?
Volume discount is a type of discount that helps customers buy products in large quantities at discounted rates from an e-commerce store. This type of discount is often used to incentivize bulk buying, making it an appealing option for both retailers and wholesale businesses.
For example, a customer purchasing 10 units of a product might pay the full price per unit, but if they buy 50 units, they would get a discounted rate. This approach encourages customers to buy more in a single order, which can boost your overall sales and help clear out inventory faster.
For businesses, volume discounts are an effective way to increase the average order value and create a more attractive offer for high-volume buyers. This strategy is particularly useful in industries where customers frequently need to restock products, such as office supplies or consumable goods.
By offering volume discounts, businesses can foster stronger relationships with their clients, leading to repeat purchases and long-term customer loyalty.
Benefits of offering volume discounts on Shopify store
Let us now look at some of the benefits to the e-commerce stores if they offer volume discounts on their Shopify store.
- Clearing Out Inventory:
Offering discounts on bulk purchases can help you move slower-selling items or excess inventory more quickly which can help in freeing up space for new products.
- Increased Sales and Revenue:
Volume discounts encourage customers to buy in larger quantities, which leads to higher order values and overall sales.
- Customer Loyalty:
Providing value through discounts can strengthen customer relationships which ultimately can encourage them to return to your store for future purchases.
- Attract Wholesale Buyers:
Volume discounts make your store more appealing to wholesale buyers who frequently purchase in bulk, helping you tap into the B2B market.
- Improved Cash Flow:
Larger orders mean more immediate revenue, which can better the cash flow of your business and can help you bring stability to your business.
- Competitive Advantage:
By offering volume discounts, you can differentiate your store from competitors who may not provide the same level of value for bulk purchases.
- Reduced Transaction Costs:
Encouraging customers to buy in bulk can lower the number of smaller transactions, reducing costs related to shipping and handling multiple orders.
Steps to set up Volume Discounts on your Shopify store
If you operate an e-commerce store on Shopify and want to set up volume discounts on your products, you can follow the below steps:
Step 1: With your admin credentials, sign in to your Shopify store and search for Wholesale Pricing Discount B2B, in the search bar. You can take a reference from the below screenshot.
Step 2: Next, you will have to install the Wholesale Pricing Discount B2B app from the Shopify app store.
Step 3: Once you install the app, you can start creating discount groups and implementing discounts on specific customer segments.
Step 4: In the next steps, you can set up different types of discounts like individual variant pricing, bulk discounts, tiered pricing discounts, etc. Select Volume/Tier Discounts and follow the steps mentioned in the dashboard.
Save your settings and you’re all set! Your customer can now see a volume discount (in a table format) something like this on your products page:
Conclusion
Offering volume discounts on your Shopify store is an excellent strategy for increasing sales, boosting customer loyalty, and moving inventory faster. By encouraging customers to buy more in a single transaction, you not only improve your cash flow but also create stronger relationships with both retail and wholesale buyers.
Whether you’re running a B2B, B2C, or a combined store, the benefits of offering volume discounts on your products are clear, ranging from increased order values to a more competitive edge in the market.