Volume Discounts on Shopify with Ultimate Special Offers
This post is part of a series on the offers available from Ultimate Special Offers. To read about other offer types, check out the series homepage.
Today we’re here to tell you everything you need to know about offering volume discounts on Shopify with Ultimate Special Offers! This post covers what a volume discount is, why you might want to offer one, how to set up a volume discount with Ultimate Special Offers, and some tips to make your volume discount succeed.
What is a volume discount?
Volume discounts = buy more, save more! It’s a classic sale type, designed to incentivize customers to buy a larger quantity of products.
Volume discounts are based on tiered pricing. You set increasing quantities that align with increasing discounts. Since this offer type is easier seen than described, here are some examples:
As the examples show, you can run a single tier with one discount, or multiple tiers with corresponding increasing discounts. It’s up to you to set the quantity and discount in each tier. You also get to decide if you want the discounts to be percentages, dollar amounts, or new prices.
Why run a volume discount?
Volume discounts are all about selling larger quantities of products, and that’s great for your business:
Volume offers increase average order value. If a customer is going to buy one tshirt, wouldn’t it be great if they bought two or three instead? Volume discounts incentivize higher quantities within purchases which means that overall, they bring in larger orders and make you more money.
Volume deals encourage customers to stock up right now. Don’t risk losing a customer to a competitor the next time they need to buy. Volume discounts will encourage folks to stock up on items now, so when one item runs out, they’ve already got another, which they bought from you!
Volume discounts help move merchandise. Overbought? Need to free up some warehouse space? Crank up those discounts and get customers buying in larger quantities, clearing out merchandise.
How to set up a volume discount with Ultimate Special Offers
To set up a volume discount offer in Ultimate Special Offers, first determine a strategy, then set up the offer in the app admin.
Determine a strategy
There are three parts to your volume offer strategy: products, quantity tiers, and corresponding discounts. Think through the following questions:
- Which products or variants are included? You can choose a single product/variant, or multiple items or collections, which can then be combined to receive the discount.
- How many tiers do you want?
- What quantity will be required in each tier?
- What discount will correspond with each tier? Discounts can be percentages, dollar amounts, or new prices.
Set up the offer in the app admin
Our Help Center will walk you through this part step-by-step! Head over to the page Making a Volume offer.
Volume discount tips
Volume discounts are great for holidays like Christmas, where shoppers are buying items for lots of people. Additionally, think about using them strategically at other times, like end of the school year (“Thank all the teachers, coaches, and mentors in your child’s life!”) or Mother’s Day (“Grab gifts for Mom, Grandma, Nana, and Auntie!”). You’re making shopping easier for your customers by helping them take care of multiple gifts in one purchase.
Plan your discounted products wisely
Choose products that have a higher profit margin, or mark up products where you break even or make a smaller profit. You want to ensure that even with your discounted pricing, you will make a profit on your sale!
Test different ways to run volume discounts
Try out the volume offer with different products at different price points, and experiment with various tiers and discount types. This will allow you to see where the offer is most effective and which products produce the highest profit margins.
Test out wholesale
If you’ve been toying with the idea of selling wholesale in your store, volume discounts are a great way to test this out. You can set the discounts at large quantities that regular consumers are unlikely to consider, but that wholesale customers will be interested in. (Of course, if you’re ready for full-blown wholesale selling, we’ve got an app for that!)
Market for events
Can any of your products be sold as party favours? Bridal party gifts? Games-day prizes? Employee appreciation tokens? Volume discounts help encourage shoppers to consider your products when shopping for events where many items are needed.
Volume Discount Resources
To see the Volume offer in action, check out the Ultimate Special Offers demo store. The video below also offers info on running a volume discount on Shopify with Ultimate Special Offers.
Let’s keep in touch!