How do you create Shopify quantity discounts in the easiest way?

How to add quantity discounts on Shopify?

As a Shopify store owner, your goal is to constantly find a way to encourage customers to buy more from you. Among all other types of discounts, a Shopify quantity discount or volume discount is one of the best ways to encourage customers to buy in larger quantities.

However, offering quantity discounts can be counter-productive and affect your store revenue if incorrectly executed. Understanding what drives these shoppers and how to implement volume discounts strategically can transform them into loyal customers.

This article will help you to understand these types of discounts and focus on benefits, guides, and best practices for implementing Shopify quantity discounts. Scroll down to explore it!

1. What are Shopify quantity discounts?

Shopify quantity discounts are price reductions for customers who purchase large numbers of products. It is a pricing strategy that Shopify merchants use to increase sales and revenue or move inventory that is not selling well.

Unlike the tiered pricing method, which provides discounts based on customers’ total spending, a volume discount relates to the quantity of a purchased product. The price decreases as the purchase quantity increases.

This is a simple example of how quantity discount can be applied to your product:

Quantity PurchasedDiscount offer
310% off
515% off
720% off

So, if you are applying this quantity discount for customers who buy a t-shirt, if they purchase 3 t-shirts, they will receive a 10% discount in total, and if they purchase 5 t-shirts, a 15% discount will be applied to their order.

2. Common types of quantity discounts on Shopify

Tiered Pricing

Tiered pricing is a special type of Shopify volume discount. The strategy involves discounting when customers’ spending amount reaches specific tiers. Customers need to add more items, meaning more quantities, so the cart value meets the requirements to enjoy the discount.

For instance, you can allow customers with orders above $200 to receive a 10% discount, orders above $400 to receive a 20% discount, and the like. This approach encourages customers to increase their order size, helping you raise the average order value (AOV).

Quantity Breaks

Quantity pricing breaks strategy on Shopify are quite popular among merchants. In this method, you offer discounts based on the quantity of a product your customers purchase. That means the cost per unit of a product decreases as the volume purchased increases.

For example, you could offer your customers a 15% discount when they buy 10 or more items. If someone orders 12, the total purchase price will be lower.

This method is easy to understand. It incentivizes customers to buy a larger number of specific products. You can leverage it to clear your inventory and boost sales.

Threshold Volume Discounts

Like quantity breaks, threshold volume discounts are based on the number of products customers purchase. However, their implementation methods are slightly different.

Threshold volume discounts will be provided to customers when their order reaches a certain quantity threshold. The discounts will only apply to the units purchased above the threshold, not the entire order. Meanwhile, in the quantity break strategy, when customers meet the quantity requirement, the discounts will apply to all units within that quantity tier, including the first units purchased.

When you offer threshold volume discounts, e.g., 10% off of all orders above ten units, your customers are incentivized to buy in bulk to get a better deal. This is a great way to increase sales, especially for large orders from retailers.

Bundle Discount

A Shopify bundle discount is a pricing strategy involving providing two more related products as a package at a discounted price. It is an excellent way to give customers better value for their money, increase customer satisfaction, and enhance the average deal size. So, it’s frequently used by Shopify merchants.

This strategy is effective in promoting related products. For example, offering a bundle discount means buying a shirt and a pair of pants together costs less than buying them individually. Bundling multiple products like that can help remove inventory faster and improve sales volume.

Buy One Get One (BOGO) Discount

A classic type of Shopify volume discounts to encourage bulk purchases. The strategy focuses on giving customers an item or items at a discount when they purchase another item, such as “Buy one, get one free” or “Buy Two, Get One at 30% Off”.

It’s a straightforward strategy with a strong appeal to customers, as it clearly offers additional value. Thanks to the BOGO method, Shopify merchants can raise the quantity sold, clear out inventory, and attract new customers.

3. Benefits of using Shopify quantity discounts

Boost Sales Volume

One of the big benefits of Shopify’s quantity discounts is boosting sales volume. When you give customers discounts for larger purchases, you encourage them to buy more. Individuals who want to take advantage of the lower price per unit will purchase multiple items. This drives more sales, increases average order values, and brings higher revenues.

Read more: How to upsell in Shopify? 3 simple steps

Enhance Customer Satisfaction

Customers usually appreciate good deals. When enjoying quantity discounts, they feel they are saving money by purchasing more. Thus, their shopping experience improves.

This nice experience will help you retain customers, increasing their chance of coming back to buy other things. In other words, you can build long-term relationships with your customers through quantity discounts.

Reduce Inventory

Quantity discounts can be an effective tool for reducing excess inventory. With a discount on bulk purchases, it’s quick to clear out slow-moving products or seasonal items. This frees up storage space and ensures your inventory remains fresh and relevant. You can further reduce storage costs and improve cash flow.

Attract New Customers

Quantity discounts are also a great way for you to attract new customers to your Shopify store. When you launch promotional campaigns with bulk discounts, you can draw the attention of potential purchasers who are looking for good deals. They may then come, experience, and return for future purchases. As long as your store offers are of great value, you can further expand your customer base.

Encouraging Wholesale Purchases

If you want to expand the wholesale market, using quantity discounts can be a powerful idea. Wholesale buyers look for savings on large orders. If you provide competitive quantity discounts, you can attract them to choose your store as their supplier. Therefore, you can have more large-volume sales.

4. Real-life examples of stores using quantity discounts

Sam’s Club

Sam's Club Shopify quantity discounts example
Sam’s Club Shopify quantity discounts example

Sam’s Club is a well-known American chain of retail stores operated by Walmart Inc. Occasionally, Sam’s Club offers quantity discounts on many products sold on its website.

For example, when buying the product Mity Lite Flex Folding Chair in the image, customers could choose between 4 packs or 40 packs. They can adjust the quantity selector, and the price will be changed accordingly.

Tote Bag Factory

Tote Bag Factory quantity discounts example
Tote Bag Factory quantity discounts example

Tote Bag Factory, a famous wholesale supplier of various types of bags, also applies quantity discount strategies. It displays the custom discount on the product page and lets customers enjoy better prices when they purchase more units of the bag.

5. How to add Quantity Discounts on Shopify?

Can you set up Quantity Discounts without a third-party app?

Usually, you will create Shopify discounts with its built-in discount feature. However, the feature doesn’t directly support quantity discounts. So you need to look for third-party apps for this piece of work.

The BOGOS Free Gift Shopify app is an exceptional option for creating Shopify quantity discounts. It’s a prime Shopify discount app for creating gifts and offers. It supports basic and advanced settings, allowing you to customize your campaigns and maximize profits.

BOGOS Free Gift was launched in 2014 and has become a highly-rated app on Shopify. It includes many helpful features, such as:

  • A wide range of promotions, including BOGO, Free Gift with Purchase, Product Bundles, Quantity breaks, Volume discount, and more.
  • Customizable rules based on URL, location, order history, and customer tags.
  • Real-time analytics for optimizing offer performance.
  • Advanced customization options for promotions.

Shopify rating: 4.9/5

Pricing: $23.99 – $79.99 per month

Customer support: Documentation, FAQs, live chat, email, video call

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Bogos Free Gift Shopify App

A step-by-step guide to set up Shopify Volume Discounts with BOGOS

Step 1:

Click "Create Bundle" to start creating quantity discounts

Choose All Bundles > Click Create Bundle

Step 2:

Choose quantity breaks bundle type

Select Quantity Break > Click Create Bundle

Step 3:

Fill in the offer information

Fill in Bundle Information > Choose Start Time and End Time > Choose Products for applying quantity breaks

Step 4:

Set up quantity discount tier condition

Fill in the information of your quantity break offers. Choose the respective quantity and discount type.
If you want to combine quantity breaks with order discounts or shipping discounts, remember to tick the box of combinations.
You can preview the offer displayed in the Preview tab on the right.

Step 5:

Click Publish to publish your offer on your Shopify store immediately. Click Save draft to save the offer setup first, but not publish it yet.

6. Best practices when using Volume Discounts for Shopify stores

Understand customers’ preferences

Understanding customers’ preferences and behaviors is necessary for setting up effective discounts. Without deep knowledge about customers, you can’t design suitable and attractive discounts. You need to know if your customers prefer to buy in bulk, which price levels are the touch points to drive conversion rates and more.

You can analyze your available data from previous sales to identify patterns. Conducting research about the market and competitors is an additional way. When thoroughly understanding your customer’s behaviors, you can tailor your volume discount strategy to meet their needs better.

Evaluate your needs

Assessing your business needs is the next part. You need to decide clearly what your objective of implementing quantity discounts is. Is it to increase sales volume or to clear out inventory? Or is it about attracting new customers? 

Once you determine this, you can tailor your discount to meet your specific objective. For instance, steeper discounts on slow-moving items will be useful if the goal is to reduce excess inventory. 

Consider profit margin

It is essential to ensure that your volume discount does not compromise your profit margins. You must calculate the total costs and determine the minimum price for selling your products. The discounts should be designed to incentivize higher sales while maintaining healthy profit margins.

Clear communication

Clear communication is a crucial factor affecting the success of volume discounts. If you don’t convey your discounts transparently and easily, your customers might be confused. They may not understand the value they are receiving, leading to ineffectiveness in your strategy implementation.

So, ensure your quantity discount offers are clearly shown on your website, product pages, and marketing materials. Provide specific information about the discount structure and eligibility criteria.

Monitor and analyze

When implementing the volume discount campaign, regularly monitor and analyze its performance. Tools like BOGOS provide real-time analysis, which is very helpful for this work.

You can understand how well your campaign is going and identify areas need improvement. Then, you can adjust the strategy with data-driven decisions.

Promote your offers

To maximize the effectiveness of your discount offers, you need to promote them. Promotion will help them reach a wide audience and attract more customers. Depending on your business, you can use email marketing, PPC advertising, or social media. Don’t forget to create attractive content and visuals that highlight the benefits of the discounts. 

Automate the setup and management

Automation will enable you to save time and reduce errors. Using apps like BOGOS to automate the setup and management of your volume discounts is a great way to do this. It will streamline the process of discount calculations or apply discounts at checkout, so you can auto-manage discount campaigns and ensure consistency and accuracy.

Read more: Shopify Volume Discount App: Top 8 most reviewed

7. Shopify advanced settings to help boost your quantity discount performance

Tailor based on customer segments

Segmenting customers and tailoring your offers based on different customer groups is a good method for optimizing your deals. Each segment may have unique purchasing behaviors and preferences. So, when you classify them, you can customize your offers to better match their needs. This way, your discount offers will be more appealing and effective.

Limit promotions in time

You can implement time-limited discounts to create a sense of urgency, enhancing your quantity discounts’ effectiveness. Including countdown timers in your promotions to remind customers of the expiration time is frequently used.

When you limit the promotion duration, your customers are encouraged to make a purchase quickly. It helps drive faster decision-making and boost sales during specific periods.

Combine with other deals

Combining quantity discounts with other deals is a great way to make your offers more attractive. For instance, you can give a quantity discount with free shipping or a complimentary gift. This approach adds extra value for customers, encouraging larger purchases. It also helps promote complementary products or clear out slow-moving inventory.

Keep reminding users

Remember to remind your customers of your discount offers frequently. Customers might not make a purchase the first time they see the offers, but they can later. Understanding the customer journey and sending reminders at suitable times will help you increase conversion rates.

You can use email newsletters, push notifications, banners, and more. Remember to highlight the offers’ benefits and mention deadlines (if any).

Conclusion

Shopify’s quantity discount is a powerful strategy that helps you increase your Shopify store’s revenue. Creating volume discounts is not hard; you can easily do it with our guide. However, you should keep in mind the best practices and helpful tips provided to implement them efficiently.

If you thoroughly understand it now, let’s analyze the factors in your Shopify store and try adopting the strategy!

8. FAQs

What Is a Quantity Discount Pricing Strategy?

It is a pricing strategy that involves offering lower prices when customers’ purchase quantity increases. It incentivizes customers to buy more products to get the deals, increasing businesses’ sales and revenue.

What Is the Difference Between Quantity Discounts and Tiered Pricing?

Quantity discounts are discounts when customers’ purchase quantity of a product reaches the required number. Meanwhile, tiered pricing offers are made when their cart value reaches the predetermined price tiers. The first focuses on quantity, while the second is about total spending.

Can You Create Quantity Discount Without an App?

No, you can’t. Shopify’s built-in discount feature currently doesn’t support quantity discounts. You need to make it via third-party apps.

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