As an ecommerce business owner, it's no secret that getting people to buy from your Shopify store can be challenging. You've created a beautiful website, offered amazing products, and done your best to get the word out. But how do you get potential customers to buy more to increase sales revenues and make a profit?
Well, the secret lies in the art of incentives, and no incentive is more effective than good old volume discounts. Offering discounts for purchasing large quantities can increase your sales and build customer loyalty.
Below, we’ll dive into the world of bulk discounts and how you can leverage them to take your Shopify store to the next level.
A volume discount (or bulk discount) is when you offer customers lower prices for purchasing more than one item. This pricing strategy aims to incentivize customers to purchase larger quantities of a product. The more items purchased, the bigger and better the discount.
Bulk discounts can also help you increase the sale of slow-moving inventory to free up your warehouse. Additionally, the discounts can attract new customers since they’re often more likely to buy when prices are lower.
If you’re considering implementing volume discounts, you should decide which type best suits your business. You can choose from the following two types:
Quantity discounts are a type of pricing strategy that offers customers a lower price per unit when they purchase larger quantities. In other words, a customer's discount will depend on the number of items they buy. These volume discounts have tiers, meaning that the more items your customers buy, the higher the discount they will get.
For example, if you sell iPhone cases for $9.99 each, you may offer a quantity discount of 10% off if the customer purchases 3 cases and 15% off if they purchase 5 cases. This encourages them to buy more than one case at once, benefiting you and the customer.
Tiered discounts are based on the same concept as quantity discounts. However, instead of offering a discount for each item purchased, customers receive discounts based on how much they spend.
For example, you may offer a 5% discount for orders over $50 and 10% for orders over $100. Tiered pricing incentivizes customers to spend more money to get a bigger discount, which is beneficial for your business since it encourages them to buy more items.
Now that you know what volume discounts are and their different types, it’s time to learn how to offer them on your Shopify store. The two best options include using the built-in discount feature or a third-party app.
The easiest way to offer volume discounts on your Shopify store is by using the built-in discount feature. This feature allows you to create promotional codes for discounts, which customers can use at checkout when they purchase a given product quantity.
The built-in feature allows you to select the discount type, including amount off products, amount off order, or buy X get Y. If you want to create a discount for given products, you can use the amount off products options. You can then proceed to choose a name for your discount code.
For the discount type, you should select whether you’re offering a percentage or a fixed amount. You should also indicate whether the discount applies to a specific product selection or all items.
The discounts feature allows you to choose the minimum purchase requirement, such as the minimum number of items or purchase amount required for customers to qualify for the discount.
If you want more customization options and features, you can use a third-party app like Sales Rocket to create and manage volume discounts on your Shopify store. Sales Rocket has various in-app features, including volume discounts, cart upsells, a countdown timer, a shoppable Instagram feed, and more.
The volume discounts feature allows you to offer tiered pricing, allowing shoppers to enjoy quantity discounts when purchasing your products. Sales Rocket will display the prices and discounts in your shoppers’ local currency.
The best thing about using Sales Rocket to offer volume discounts on your Shopify store is that you can leverage other features to increase your sales and revenue. For instance, you can use the cart upsells feature to suggest related products that shoppers should buy to get a bigger discount.
You can also use the stock countdown to create a sense of urgency, encouraging shoppers to purchase fast before the offer ends and the product is out of stock. You can also leverage the sales notification feature to show shoppers how others are taking advantage of your offer. With sales notifications, you can give your customers the social proof they need to make more purchases and qualify for higher discounts.
Here are some tips that can help you make the most of your volume discounts:
Set clear thresholds for discounts: Define the minimum purchase amount or product quantity customers need to reach to qualify for discounts.
Offer attractive discounts: Give customers a good reason to buy with you by offering attractive discounts. Offer a decent discount that will appeal to your shoppers without hurting your profits too much.
Create time-limited discounts: To create a sense of urgency, use time-limited discounts to encourage shoppers to purchase quickly. You can also include countdown timers in your promotions to remind customers when the offer will expire.
Promote your volume discounts: Use email marketing, social media campaigns, and other strategies to get the word out about your offers.
Offering volume discounts on your Shopify store is a great way to increase sales and revenue by attracting more shoppers looking for better deals. If you want to get the most out of your volume discounts using a third-party app, consider adding Sales Rocket to your Shopify store.
Besides helping you offer volume discounts, the app can also help you increase the average order value, create a sense of urgency with countdown timers, and showcase social proof through sales notifications. Start your free trial to see how Sales Rocket can help you increase your revenues.