Stores use quantity discounts to encourage customers to purchase more products than they originally planned to. Shopify stores and other businesses generally use quantity discounts to increase sales, reduce inventory, and increase revenue and cash flow. Now, we will explain what quantity discounts are, the benefits of offering them for your store, and how to set them up on Shopify.
What Does a Quantity Discount Do?
First things first, a quantity discount is a pricing strategy that businesses use to increase sales. There are two main reasons you should offer quantity discounts on your Shopify store:
- Incentivize Larger Purchases: This allows customers to purchase more of a product at a lower price, saving them money. It also helps your business by gaining customer loyalty and increasing revenue.
- Improve Your Bottom Line: Offering quantity discounts allows you to increase revenue, get rid of excess inventory, and improve cash flow. It also helps you sell products within a certain timeframe.
A business will offer customers reduced pricing in exchange for buying more of the same product.
Pros and Cons of Offering Shopify Quantity Discounts
There are several advantages and disadvantages to offering Shopify quantity discounts for your store.
Pros of Quantity Discounts
One advantage of offering Shopify discounts on quantity is cost savings. Customers and businesses can save money on larger orders, especially those wanting to stock up on a particular item. Another advantage is increased sales volume.
Offering quantity discounts entices customers to buy more of a specific product, increasing revenue and lowering excess inventory, especially during slow seasons. Offering quantity discounts also builds customer loyalty. It allows customers to save money, increasing their chances of returning to your store for future purchases.
Cons of Shopify Quantity Discounts
Offering quantity discounts requires a higher initial investment for your customers, which may be difficult if they are working within a specific budget. It can also pose a problem for your business with potential inventory challenges. When you offer quantity discounts, you will need a large stock of that particular item.
It is essential to have a way to manage inventory effectively so you avoid ending up with a huge excess of products. Offering quantity discounts can also reduce your Shopify store’s profit margin. You want to make sure that the discount on the product is sustainable so that you can still make a profit on the sale.
Steps to Set Up a Shopify Discount on Quantity
Here are the ways to set up Shopify quantity discounts if you have a Shopify Plus Plan.
Set Up Quantity Rules
To set up your quantity rules for each product or variant of a product you want quantity rules applied to. To do this, log in to your Shopify Admin and click Product, then Catalogs. Then click on the catalog you wish to edit. In the Products and Pricing section, click Manage and then Manage Products and Pricing.
Here, you can either set quantity rules for a specific product and all of its variants or select specific variants to which you want to add quantity rules by hovering over the product or clicking variants under the product and hovering over the specific variant.
In the quantity rules column that pops up, click add. A new window will open that says edit quantity rules and volume pricing. In this window, you can update the increment and minimum fields. You can also add a maximum quantity if you wish, but this is not required. Make sure you review the numbers you added, then click done.
Set Up Volume Pricing
In order to set up volume pricing for certain products, you will start the same way you did when you added quantity rules. However, when you hover over the product or variant you want to add volume pricing to, you will click Volume Pricing and then Add.
When the edit quantity rules and volume pricing window pops up, you can fill out the quantity and price fields for that product or variant. If you want to add additional volume pricing breaks for that product or variant, click add break, and you can fill in those fields. Make sure you review your numbers and click done.
Using Shopify Apps for Advanced Quantity Discounts
You can also use apps from the Shopify App Store, like Bulk Discount Now from Website on Demand, to help you set up Shopify discounts on quantity.
The Bulk Discount Now app allows you to apply bulk discounts, quantity discounts, and tiered pricing on your Shopify store. You can set up bulk and quantity discounts and tiered pricing in just a few clicks. It is super easy to use and integrates with most Shopify themes, pop-up carts, and AJAX carts.
Some of the benefits of the Bulk Discount Now app include:
- Encourages your customers to purchase more product
- Increases shopper confidence – the cart shows how much they are saving
- Set you apart from your competitors – attracts new customers
- Easy to use with no coding requirements
Also, it has fast customer support if you have any questions.
Quantity Discounts on Shopify with Website on Demand
Adding quantity discounts to specific products on your Shopify store is a great way for customers to get what they need and for you to increase revenue and get rid of excess inventory. It is easy to set up quantity rules and volume pricing in Shopify, but with just a few clicks, the Bulk Discount Now app can set it up in a jiffy. Give it a try today with a 14-day free trial.
