Bulk Discounts is a method that reduces the price related to the quantities or values purchased of eCommerce products. This works well for products that are in high demand and products that people would want to have multiples of.
Why is Bulk Discounts a viable solution for both Shopify stores and customers alike?
The value is pretty obvious on both sides. For your customers who would want multiples of that product anyway, the more they buy, the more they save! The economies of scale allow them to see deeper discounts the more they purchase. For merchants, it decreases small orders and thereby avoiding the high cost of shipping/servicing them. This is also better for the environment in offsetting your carbon footprint in last-mile deliveries.
Having fewer sales than your competitors does not mean that you have to lower your prices in trying to win a downward race. Instead, offer options to your customers that deepens their relationship with your brand and is a win for them and your eCommerce business.
One of the bigger benefits of offering bulk discounts is an increase in your average order value (AOV). It’s simple to consider, an easy marketing strategy to adopt, and creates an environment in your Shopify store whereby you aren’t running sales constantly to increase sales.
Offering Bulk Discounts Builds Loyalty and Recurring customers
Have you ever experienced buying the same product over and over again from the same store which uses Linear Pricing?
E.g., Ordering the same dog food every month at the same price. It’s pretty discouraging, right?
But what if you were granted an option to buy in multiple quantities at a lower price? This approach allows your customer to have some sort of “power” as they have more control over which deal benefits them the most. On top of that, they might even try a new product/variant from your store just to get a better deal. Furthermore, it opens up a new set of eyes and opportunities to your store.
Strategize Your Discounts And Emphasize Upsell
We’ve already established that discounts are great but it’s also imperative to recognize when and to which product you should apply the discounts.
We all know Apple does this extremely well. Their products are known to have strong perceived value because they “rarely” announce a sale or a discount. And when they do, it’s a guaranteed success.
This is why the bulk discount strategy keeps a constant expectation from the customer and an easy way for you to forecast future inventory. Its focal point is leaning towards being an upsell strategy rather than a simple discount. Psychologists have proven that customers would prefer a 2 for 1 deal over a 50% off discount for a singular product.
Conclusion
With this in mind, it is recommended that your Bulk Discount tool does the following:
- Apply bulk, tiered, & volume discounts on specific products, collections or your entire product list
- Upsell messages on the cart page
- Bulk Discount Table on the Product page
- Customizable text and table
- Compatibility with Shopify Discount codes
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