How To Offer Volume Discounts on Your Shopify Store

Nitesh Chand
ByNitesh Chand

6 mins read

Shoppers on Shopify are always on the lookout for a better deal, especially when they're buying more. These are the deal-seekers and bulk buyers, constantly hunting for discounts. However, offering volume discounts on your Shopify store isn't just about making sales – it's about understanding what drives these shoppers and how volume discounts can turn them into loyal customers.

In this article, we are going to understand the basic idea behind Shopify volume discounts, why they matter, their types, and how to set an effective one for your store.

What do you mean by Shopify volume discounts?

Shopify allows you to provide discounts to customers who buy products in large quantities. You can define the minimum quantities that you need a customer to purchase for the discount to trigger. These discounts can be set up either in the Catalogs section of the Shopify admin or by uploading a CSV file.

Why do Shopify volume discounts matter

Now that we understand the meaning of volume discount, let us understand why it is important for your Shopify store.

  • Attractive bulk pricing: New customers see better value when they get lower prices rather than a fixed amount for buying items in bulk.
  • Increase in bulk order size: When customers buy in larger quantities to get volume discounts, the average order value and the number of products bought in each order increases.
  • Move bulk quantities faster: Slow-selling items can be cleared out more effectively as volume discounts incentivize customers to buy them in larger amounts at fixed prices.

Types of Shopify volume discounts

Before diving into the specifics, it's important to understand the kinds of volume discounts that you can offer to the customers on your Shopify store.

  • Tiered volume discounts: As customers purchase more of the same item, the discount per item increases. For example, buying 5 items might give a 5% discount with a discount code HAPPY5%, but purchasing 10 of the same item boosts the discount to 10%.
  • Volume-based pricing for all units: Once a customer buys a certain number of the same product, a discount is applied to all units of that product. For instance, if you buy 15 or more of a specific item, each unit of that item is discounted.
  • Bundled volume discounts: Discounts are provided when customers purchase predetermined bundles or sets of items in larger quantities. For example, a discount might be available if you buy a pack of 3 T-shirts, encouraging buying in volume.

How to set up volume discounts on Shopify

Before setting up Shopify volume discounts, you need to establish quantity rules for your products. This is how you can do it:

Setting up quantity rules

Here are steps that you can follow to maintain quantity rules and restrictions in your Shopify store.

Step 1: In your Shopify admin dashboard, go to 'Products' and then click on 'Catalogs'.

Step 2: Select the catalog you wish to edit and click on 'Manage' under 'Products and Pricing'.

Step 3: Hover over the product you want to edit and proceed with your changes.

Step 4: Go to the 'Quantity rules' column and add the number of products.

Step 5: Update the increment minimum and maximum fields as required. 'Increment' specifies the unit increase in which a product variant can be bought, and 'Minimum' sets the lowest quantity needed for a purchase. Optionally, you can also set a limit in the 'Maximum' field to cap the maximum number of items a customer can buy in a single order. https://lh7-us.googleusercontent.com/YtIjGoek7Xm9LTUPmERURBHkdw46dAAZBMXUaEN-414ptFvr1ahc6odAuGjf0ZzJgh-WC3M7DrFuyMrFy32n6hrne8RhJM0XSO_3PJiEHg_XvFBqIKoT7gbkC_l2TboMFaC1tL7-kWTEgtgFkTDbZcw

Step 6: Click 'Done' to save the rules.

Setting up the volume discount

Step 1: After finalizing the quantity rules in Shopify, choose the product variant you wish to apply volume pricing to by clicking on its 'Variants' link.

Step 2: In the 'Volume Pricing' section, click '+ Add'. Enter the 'Quantity' and 'Price' for your initial price break, ensuring they adhere to your set minimum order quantity and increment rules.

Step 3: For more price breaks, select 'Add break', and input the 'Price' and 'Quantity' for each subsequent break, making sure they align with your established rules.

Case studies of successful Shopify volume discounts

At last, here are two real-life case studies, that will help you clarify the importance and effectiveness of Shopify volume discounts.

1. Ocean Spray Jellied Cranberry Sauce

https://lh7-us.googleusercontent.com/h5eEuL9dd88OP9r5LNBC3dsBKFUogiVjG4eFJIY6gJPgWxsSqF0JOwFvwBqGF3A3B2mHyiqqWEFnojRRX1-iQwlgN6UU1eudprf9Gi1Y6cpW-FBhf0rm0NChbOD_eUtcF_03EqsEe03SIBoHGiBRKLI

Ocean Spray Jellied Cranberry Sauce offered a fantastic deal, perfectly timed for their Shopify theme and the festive season. The store had skillfully established a volume discount by coaxing customers to purchase in larger quantities. Priced at $2.84 for a single product can with quantity breaks, it was an appealing buy for anyone prepping for a holiday feast. The volume discount twist was the real draw – a 2-pack was also priced at $2.84, essentially offering the second can on the house! And for those planning for a grander affair, the 3-pack was an irresistible steal at $4.26, reducing the cost per can considerably.

This strategic and dynamic pricing was not merely about offering value; it was a calculated move to boost the store's sales volumes. Shoppers felt they struck gold, particularly those who came intending to buy more than one.

As shoppers added the 3-pack to their cart pages, basking in the glow of efficient holiday planning and efficient purchase, the store capitalized on a heftier sale. In this exchange, the store skyrocketed its sales figures, and shoppers walked away feeling like budgeting geniuses.

2. Flash Furniture

https://lh7-us.googleusercontent.com/KB5NGmnKyHJYDmvgfABPlakVf2QIiDa3Qf9Y2PHiCWee_-Spi2AZ757WM22vREDgnS8Xq0OX0W8gEj0VUxsiVVAKLwaGZvnNKT8zHyxqInYugqwYpkVUPkSuDjtYg_JqM5tWwYqVZbW9JVTDWsevlOs

Flash Furniture offered a solitary chair listed at a modest $58.98, quite the fair price for its blend of sturdiness and aesthetic appeal. Yet, this was more than a singular purchase; it was an invitation to buy in bulk and reap the benefits. For those organizing a larger venue, the store had an ace up its sleeve—a quantity discount. With the selection of a 20-pack, the savings began to unveil themselves, but it was the 40-pack that showcased the zenith of the store’s volume discount strategy, slashing the price per chair to an offer that was hard to ignore.

As the virtual cart filled with a 40-pack, customers were not only procuring quality chairs but also cementing a savvy financial move. This store understood the power of bulk discounts and played it to its advantage, driving shoppers to make a purchase that was as much about economics as it was about quality.

Conclusion

Shopify volume discounts hit the sweet spot – they boost your sales and make your customers feel like they're getting a real bargain. It's a straightforward yet effective way to grow your store and keep those deal-loving shoppers coming back for more. Keep in mind, that while discounts are great for attracting customers, overusing them can impact your profits. One simple and great way to make sure this does not happen is to use volume discount apps offered on the Shopify app store. It's all about finding the sweet spot, and seamless integration with efficient customer support – a balance that keeps your business thriving and your customers satisfied.

FAQs

To set discounts that don’t hurt profits, consider your margins. Offer enticing discounts that still ensure a reasonable profit. Analyze costs and customer responses to find the best rate.

Volume discounts can be brand-friendly when used thoughtfully. Apply them selectively, like on overstocked items or during special sales events, to maintain your brand's perceived value and appeal.

For promoting volume discounts, combine several channels. Use targeted email campaigns, engage followers on social media, and display eye-catching banners in your store to communicate the value and details of your offers.

Volume discounts are excellent for clearing old stock. They entice customers to buy more, especially less popular items, by offering better value for purchasing in larger quantities, effectively reducing surplus inventory.

What should you do next?

You made it till the end! Here's what you can do next to grow your business:

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Table of contents

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What do you mean by Shopify volume discounts?
Why do Shopify volume discounts matter
Types of Shopify volume discounts
How to set up volume discounts on Shopify
Case studies of successful Shopify volume discounts
Conclusion

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