You may have heard of bulk discounts if you have an eCommerce store. Bulk discounts can offer incredible benefits to customers and companies.
However, which companies use them, and why are they becoming so popular?
What Are Bulk Discounts?
As the eCommerce world continues to thrive, more companies are using bulk discounts to encourage shoppers to purchase products in higher quantities. Companies offer items at a more affordable price, depending on the numbers ordered.
For example, companies may decrease the price of a specific item by 25% if they buy it five times. In turn, this offers many benefits to the company and the customer.
The Benefits of Using Bulk Discounts
Bulk discounts are a pricing strategy used by eCommerce businesses to incentivize customers to purchase more products in a single order. These discounts are offered when customers purchase a certain quantity of a particular item or a combination of different products. For instance, a company may reduce the price of a product by 25% if the customer buys it five times.
Bulk discounts have become increasingly popular in recent times as eCommerce continues to thrive. The benefits of using bulk discounts are numerous for both the company and the customer. Firstly, companies sell more products and increase overall sales and revenue. This results in higher profits for the company, which can be used to invest in other areas of the business. Secondly, bulk discounts can lock in current customers as they are more likely to return to the eCommerce platform if they have previously benefited from bulk discounts. Customer retention prevents market share loss and stops other companies from entering the market. Lastly, companies use bulk discounts to compete with rivals who offer similar pricing strategies. If competitors offer bulk discounts on specific items and a company doesn’t, they risk losing customers to their competitors.
- Companies sell more products – Bulk discounts encourage customers to buy more products, thus increasing overall sales and revenue.
- It can lock in current customers – Customers will likely return to your eCommerce platform if you’ve offered bulk discounts previously. Customer retention prevents market share and stops other companies from entering the market.
- To compete with rivals offering bulk discounts – If your competitors offer bulk discounts on specific items and you don’t, there’s a strong chance that they will gain the customer.
Which Companies Use Bulk Discounts
#1: School Sports Teams Merchandise
Companies offering school sports teams merchandise can benefit hugely from bulk discounts. For example, parents will want to buy merchandise for their friends and family if there’s an upcoming school sports team match. Parents often purchase sports team clothing in bulk if their children love to play sports.
#2: Home Furnishings for Hotels and Businesses
Companies selling home furnishings for hotels and businesses can enjoy enormous advantages from offering bulk discounts. All hotels—regardless of their standard—witness damaged furnishings constantly; for larger hotels, it’s often a daily occurrence. As a result, hotels love bulk discounts on furnishings.
#3: Vinyl and Tulle Supply
Companies offering artistic products—such as glitter and vinyl—can benefit massively from bulk discounts. Artists and creatives can go through supplies in weeks; therefore, most will purchase large quantities in advance. In addition, schools and companies that require creative supplies need to stock up in advance.
#4: Branded Clothing Companies
Companies selling corporate branded clothing items—such as hats at T-shirts—witness incredible advantages from offering bulk discounts. For example, corporate companies who need to print their company logo on staff clothing will likely buy in vast quantities to cater to the entire company. In addition, event companies may buy large amounts of branded T-shirts and hats for events.