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What Are Volume Discounts

  • Published on
  • Oct 3, 2024
  • Reading time
  • 3 min read

Volume discount is a powerful tool for Shopify merchants seeking to increase sales, encourage larger purchases, and build strong customer relationships. In this article, we’ll explore various types of volume discounts tailored for Shopify businesses and provide examples to demonstrate their practical applications.

Volume discount benefits both the buyer and the seller. The buyer gets more products while paying less, and the seller increases revenue while fostering customer loyalty. Satisfied customers who feel they’re getting good deals are more likely to make repeat purchases!

Types of Volume Discounts

Volume discount is an umbrella term that can be divided into a few types. Depending on your product, you can consider which type is most suitable for your business.

Common Types of Volume Discounts:

  • Tiered Discounts
  • Threshold Discounts
  • BOGO Discounts
  • Volume or Quantity Discounts

1. Tiered Discounts

The most common type of volume discounting, tiering, offers a percentage off based on the number of products purchased.

Example:

  • 5% off when you purchase 15 units or more.
  • 10% off when you purchase 30 units or more.
  • 25% off when you purchase 50 units or more.

2. Threshold Discounts

These discounts apply based on how much the buyer spends.

Example:

  • 5% off orders of $500 or more.
  • 15% off orders of $1000 or more.

3. BOGO Discounts

A BOGO Discount (Buy One, Get One) offers one or more free items when a certain quantity is purchased.

Example:

  • Buy 2, get 1 free.
  • Buy 3, get 2 free.

4. Volume or Quantity Discounts

Similar to tiered discounts, but based on specific quantities purchased.

Example:

  • Buy 2, get 10% off.
  • Buy 3, get 15% off.
  • Buy 4, get 25% off.

Why Volume Discounts Matter

Volume discounts can increase your Average Order Value (AOV), boost customer satisfaction, and encourage repeat purchases. They are particularly useful for businesses looking to increase sales and move inventory quickly.

However, managing discounts manually can be time-consuming. This is where a volume discount app comes in handy.

Try volume discounts on your Shopify store by installing FloatyApps – Volume Discounts for free! 🚀

More Information:

Conclusion

Shopify merchants can harness the potential of volume discounts to boost sales and strengthen customer relationships. By strategically applying these various types of discounts, businesses can improve their pricing strategies, increase revenue, and enhance the overall shopping experience.

Want to learn more about 🚀 FloatyApps – Volume Discounts? Visit our website or contact us at support@floatyapps.com.