Would you like to start offering discounts to your customers?
Perhaps you already have a discount strategy in place, but you’re looking for a way to make it even more effective.
This is where quantity discounts can help.
What are quantity discounts
A quantity discount is a type of discount that provides the buyer with a lower price per item if they purchase multiple items. While they’re more common in B2B, both B2C and B2B businesses use quantity discounts in their pricing strategy.
Quantity discounts can be divided into tiers, with larger orders granting greater discounts. There’s also the option of applying a single discount once a quantity threshold has been reached.
The benefits of implementing quantity discounts
Using quantity discounts can provide businesses with a number of benefits.
By implementing quantity discounts, you’ll be able to attract more customers, improve conversion rates, increase average order value, stay competitive, and improve customer retention.
Attract more customers
Adding quantity discounts to your pricing strategy can help you attract shoppers who are looking for a good deal.
Once these shoppers become customers, you’ll have an easier time selling to them again and generating even more revenue.
Improve conversion rates
A lot of shoppers are motivated by discounts. In fact, as much as 67% of consumers state that they’d made an unplanned purchase because they were offered a discount.
By reducing the total cost of the order, quantity discounts lower the customer’s perceived risk and make it more likely that they’ll finalize their purchase.
Offering a quantity discount increases the chances of converting shoppers into customers, helping you generate more sales and revenue from your existing traffic.
Increase average order value
Everyone likes getting a good deal on a purchase, as well as saving money in general.
By using quantity discounts, you can incentivize shoppers to make larger purchases to get more for their money. This, in turn, helps you increase average order value and generate more revenue for your business.
48% of shoppers claim that they avoid brands that don’t offer discounts.
Offering quantity discounts is a great way to stand out and create an additional reason why consumers should choose to shop with you.
If your competition is offering quantity discounts, on the other hand, implementing them for your own business can help you keep up and stay competitive by offering the same benefits your competitors do.
Improve customer retention
93% of shoppers state that they would make repeat purchases if a brand offered enticing discounts.
If customers know that they can always find a good deal when shopping with your business, they’ll keep coming back to you again and again.
Quantity discounts can help you improve customer retention and increase the lifetime value of your customers.
Challenges of using quantity discounts
While quantity discounts can provide businesses with a lot of benefits, they also come with their own set of challenges you need to keep in mind before implementing them into your pricing strategy.
Quantity discounts tend to:
Reduce profit per item
It’s true that quantity discounts can help incentivize shoppers to make larger orders. However, you need to keep in mind that using quantity discounts will also reduce the profit you’re making per item.
This means that you need to be careful about which of your products you can offer quantity discounts for, as well as how big those discounts can be without making you lose money.
Lower your price point
By giving customers a better price when they order a product in bulk, you effectively lower the price point for that particular product in their mind, making them think that the discounted price is what the product is actually worth.
This makes it harder for you to increase the product’s price in the future.
Top 5 Shopify apps for implementing quantity discounts
There are thousands of apps in the Shopify app store, which sometimes makes it hard to find an app that fits your needs.
That’s why we’ve gathered the top five Shopify apps you can use to implement quantity discounts into your Shopify store.
They include Upsell Anything, Discounted Pricing, Unlimited Bundles & Discounts, Selly, and Quantity Breaks & Discounts.
It also supports features such as negotiable pricing and store credit.
The app is very easy to use thanks to its drag-and-drop page builder.
Upsell Anything comes with a free 14-day trial you can use to test out the app and see if it’s the right fit for your needs. The paid plan costs $2.90/month.
Created by Booster Apps, Discounted Pricing is a popular app for adding various types of discounts to your Shopify store.
It supports volume pricing across products and collections, as well as quantity breaks. It can also be used alongside discount codes.
Discounted Pricing comes with a 7-day free trial. Paid plans start at $19.99/month.
Unlimited Bundles & Discounts
Unlimited Bundles & Discounts is an app that enables Shopify store owners to create discounted product bundles and quantity discounts.
It’s compatible with all Shopify themes and inventory apps, and is completely mobile-friendly.
Unlimited Bundles & Discounts offers a free plan that’s limited to a single bundle. Paid plans start at $4.99/month.
Created by Treedify, Selly is a Shopify discount app that supports bundles, quantity breaks, and stackable discounts.
It comes with a number of additional features, including upsell pop-ups, a recommended products section, and post-purchase upsells.
Selly’s pricing starts at $15/month.
Quantity Breaks & Discounts
Quantity Breaks & Discounts is another Shopify app that helps ecommerce businesses implement discount pricing.
It supports product-specific and catalog-wide discounts, as well as percentage-based and fixed amount-based discounts.
While the app does have a free plan, it only allows you to create discounted pricing for a single product. Paid plans support unlimited discounts and start at $19.95/month.
Start using quantity discounts today
Quantity discounts are used by both B2C and B2B businesses.
They can help you attract more customers, improve your conversion rate, increase average order value, and improve customer retention. Quantity discounts are also a great way to gain an advantage over your competition.
You can implement quantity discounts, as well as a variety of upsell offers into your Shopify store by using Upsell Anything.