Shopify Volume Discount: A Comprehensive Guide (2024)

Most online store owners are familiar with quantity discounts, but there is more to that. Shopify volume discount is a broader type of promotion that provides customers with discounted prices when they purchase more items or reach different cart tiers.

Activating such offers helps incentivize bulk purchases and increase the average order value. Customers are happy to get the best shopping deals, and store revenue increases with multiple key performance indicators achieved.

Curious about how this discount type can benefit your business? Read this article to learn about volume discounts and how to tailor them to match your promotional needs.

1. What is Shopify Volume Discount?

Shopify volume discount is a sales strategy where customers receive discounts based on the number of products they purchase. It is broader than quantity discount, which includes quantity and/or total cart value as the discount conditions.

The larger the order, the higher the discount. This type of promotion motivates customers to spend more by offering them a lower price per item as they increase the purchase quantity.

Some of the common volume discount structures for Shopify stores include:

• Tiered pricing: Each quantity level triggers different discounts, for example, “Buy 1-10 items: No discount; Buy 11-20 items: 5% off; Buy 21+ items: 10% off.”
• Bulk pricing: When a buyer purchases a specific quantity threshold, a flat discount is applied, e.g., Buy 5 or more, get 10% off.
• Buy more, save more: It ties the discount to a fixed quantity, such as “Get 10% when you buy 3 or more” or “Buy 2 items, get 1 free.”.

2. How To Create Volume Discounts With Shopify Native Discount

The system can provide basic configuration if you use Shopify’s native discount to create Shopify volume discount offers. Besides that, to create tier discounts, you can use discount codes by setting different quantity or cart values for each code.

For instance, buy 3 products for 10% off with the code DISCOUNT01, 5 products for 15% off with the code DISCOUNT02, etc. Customers get a discount when entering these codes at checkout.

However, this configuration has several disadvantages for shoppers since they must purchase exactly 3 or 5 products to receive the discount. In some cases, it might be confusing for them and lead to higher cart abandonment rates.

A quick guide to creating tier volume discount with discount code

Step 1: Visit your Shopify admin dashboard > Click Create discount > Amount off products.

Step 2:

Select the Discount code and give it a simple title for customers to use at checkout. At Discount value, choose a fixed monetary value or percentage. Decide if it applies to specific products or collections, and the Purchase type should be a one-time purchase, subscription, or both.

Step 3:

Set the threshold with 3 options: no requirements, minimum purchase amount, or item quantity. For Customer eligibility, select all customers, specific customer segments, or specific customers. With Maximum discount use, limit the number of times this discount applies in total or limit it to one use per customer.

Step 4:

Regarding Combinations, decide whether this discount can be combined with others, including products, orders, and shipping. Set the active dates for the offer, including the start and end dates for pre-scheduling.

Repeat the process with higher tiers to complete your hierarchy for Shopify volume discount.

3. How To Create Volume Discounts With Shopify App

While you can easily set up Shopify volume discounts directly on the platform, many other store owners choose Shopify Volume Discount apps to leverage their strategy. Here are reasons why you should use a 3rd party extension to create Shopify Volume Discount.

Advanced customization

Using a third-party app has the noticeable advantage of having more complex built-in discount structures. You can easily create and activate a variety of promotions, such as quantity tier discounts or tier discounts based on total spending.

It consists of more specific discount conditions and customer segmentation, allowing you to personalize the offers toward specific buyer groups or categories. Some apps also enable the combination or stacking of multiple discounts, which Shopify may not support.

Enhanced customer experience

A third-party app helps display Shopify volume pricing dynamically on the product page as buyers increase their quantity. This provides them with a clearer incentive and motivates them to purchase more.

Another way an app can enhance customer experience is by automating the discount application. It does not require shoppers to manually input discount codes at checkout, streamlining the purchase process with high automation.

Seamless compatibility and display

There is no need to worry about integration with Shopify since most external apps are built to work seamlessly with their themes and customizations. Your discount strategy will maintain the overall UX/UI of your online store.

Moreover, the custom checkout powered by a third-party app can enhance how your deals are presented and applied, delivering a more tailored experience for your buyers.

A step-by-step guide to creating volume discounts with Shopify app

BOGOS is a widely trusted app that creates Shopify automatic discounts. It is designed to help merchants set up enticing promotions that increase their store revenue and enhance customer experience.

If you are not yet satisfied with Shopify’s native functionalities, BOGOS is the ideal choice for generating, combining, and managing automatic promotions. The platform allows you to set up complex discount rules for more powerful campaigns.

Plus, store owners can use BOGOS to configure and activate bundle discounts, volume discounts, and quantity breaks. This helps diversify your store and enhance its appeal to potential and recurring customers.

The best part about BOGOS is that its settings allow you to create and run all kinds of volume discounts available. That is why many store owners choose this software to leverage their discount strategies and practices.

Shopify rating: 4.9/5

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

Pricing: $23.99 – $79.99 per month

Below are detailed instructions from A to Z to set up volume discounts with this app:

4. Common Types of Volume Discounts on Shopify

Volume discount is a broad mother term consisting of many other variations. Here is a quick breakdown of different Shopify volume discount types for your consideration of what works best for your promotional needs:

Threshold volume discounts

Customers get a discount after their purchase quantity or total cart value reaches or exceeds a specific threshold. The larger the shopping volume, the higher the discount.

Example:

• Buy 10 or more items to get 20% off your entire purchase
• Spend $80 or more and get 15% off your total order

Quantity tier discount

Discounts are applied based on a hierarchy of specific quantity tiers. When customers spend more, they qualify for a higher discount tier.

A few common quantity discounts are:

• Quantity breaks:

Provide discounts based on the number of items bought, with the discount increasing as the quantity increases.

Example: Buy 3 items and get 5% off, 5 items for 10% off, and 10 items for 15% off.

• Standard quantity tier discount:

The standard variation of quantity tier discount offers discounts based on predefined quantity thresholds. While the price reduction for quantity breaks is usually a percentage, tier discounts have fixed prices at different quantity levels.

Example: Buy 1 shirt for $20, but buying 5 or more can reduce the price to $17 per shirt.

• Quantity discount based on Buy X, get Y:

The buy X, get Y (BXGY) promotion allows customers to receive a discounted or free product (Y) when they buy a specific number (X) of another product. 

Example: Buy 3, get 1 free; Buy 2, get 30% off the third item.

Tier discount based on total spend

This Shopify volume discount type is triggered based on the total amount spent instead of the number of items purchased.

Example:

• Spend $1,000: Get 10% off
• Spend $2,000: Get 15% off
• Spend $3,000: Get 20% off

Cumulative volume pricing discount

Customers receive a discount based on the total order value within a specific period.

Example: Order from $1,000+ in 1 month, 3 months, 6 months to get a 10% discount.

This type of discount is similar to the above, but it applies to all purchases during that period and not only the current order. Your buyers can also enjoy an extended discount for a specific time.

Bundle or package discount

Discounts are applied when buyers purchase a specific bundle or a set of products together. Shopify volume discounts as bundles motivate customers to buy related or complementary items.

Example:

• Buy a skincare set and get 10% off the price
• Purchase a set of a shirt, pants, and shoes for $150 (instead of $180 if purchased separately)

5. Benefits of Using Shopify Volume Discount

Here are a few reasons why setting up and initiating Shopify volume discount offers can benefit your discount strategies, especially during seasonal campaigns.

Increased sales volume

When offered discounts on larger quantities, your customers will be incentivized to spend more than they initially planned. This leads to an increase in sales volume.

Moreover, the average order value (AOV) also gets higher due to surging bulk purchases or bundles. Eventually, they contribute to boosting the overall store revenue.

Enhanced customer satisfaction

Most online shoppers enjoy the feeling of getting a good deal, which enhances their satisfaction and improves their shopping experience. The positive perceived value enables word-of-mouth referrals from happy customers to new buyers with trust. Shopify volume discounts also increase customer loyalty and motivate them to return to your shop for future purchases.

In addition, this type of promotion helps with tailored Shopify volume pricing for different customer segments, such as frequent buyers or wholesalers. A third-party app like BOGOS can categorize your buyers into diverse groups for more targeted deals.

Optimized inventory management

If you have excess stocks that need to be cleared out, activating volume discounts can effectively optimize your inventory. This specifically works with seasonal items or those nearing the end of their life cycle as you combine them with complementary or related products.

Less effort with more efficiency

Offering volume discounts on Shopify helps you sell more in fewer transactions, as customers buy extra items in a single purchase. It can also reduce per-unit transaction costs, making your operation more efficient with high automation.

Plus, a straightforward promotion like this is easy to promote on diverse social channels. The discount configurations are fixed and simple to communicate with potential customers.

6. Conclusion

As you can see, Shopify volume discounts can add various advantages to your promotional campaigns. They help diversify your business by offering buyers different discount variations, incentivizing them to buy more to earn larger discounts.

To embrace an influx of bulk orders, make sure you have everything prepared, from calculated profit margins and customer segmentation to bulk-order shipping costs. This guarantees high-performing promotions that benefit your stores and satisfy shoppers.

A newbie should try Shopify’s built-in features, while experienced merchants will love third-party apps like BOGOS to enable complex conditions and automate the process. Either way, they function well in supporting your volume discount implementation.

7. FAQs