Wholesale Club 101: Volume Discounts

by | Jan 10, 2023

This post is part of a series that goes over the basics of Wholesale Club. If you’re new to selling wholesale, or just new to the Wholesale Club app, you’re in the right place! Check out the rest of the series here.

As shoppers we are all used to seeing volume discounts – they are popular in B2C stores, and in B2B stores, too!  This post will discuss what volume discounts are, how they work, and how they’re set up in Wholesale Club.

What is a volume discount?

A volume discount is a discount that rewards a customer for spending a larger amount of money, or buying a higher volume of products. An easy way to think of a volume discount is “buy more, save more.” The logistics of the discount can vary (as you’ll see below) but the concept remains the same.

How do volume discounts work?

Volume discounts are added on top of standard wholesale discounts. They can be set up in a few different ways.

    • They can be based on total cart spend. For example, spend $500, get an additional 5% off; spend $1000, get an additional 10% off.
    • They can be calculated on the total number of items being purchased. In this case, it doesn’t matter which items a customer has selected, they receive a volume discount when they hit a specific total quantity of products in their cart.
    • They can apply to individual items, so when a certain quantity of a specific item is purchased, an additional discount is applied. 
Why would a wholesale business offer volume discounts?

Volume discounts are all about incentivizing larger purchases. This is the same whether you’re selling B2C or B2B. Offering customers greater discounts when they buy more means you move more merchandise and take in more revenue.

With wholesale, there’s also the added benefit of increased efficiency. It’s a lot easier to process one order for $1200 worth of merchandise instead of 3 orders of $400. Offering volume discounts that encourage customers to spend more at one time makes it more likely that they will place fewer, larger orders, meaning less work for you.

How do volume discounts work in Wholesale Club?

First, we have to mention that volume discounts are a feature available on the Professional Plan. So if you’re on the Basic Plan and you want to offer volume discounts, you’ll need to upgrade. It’s worth it, though, because upgrading also gets you the Custom Prices and Net Terms features.

Volume discounts are very easy to set up in Wholesale Club! There are fields for discounted cart totals, cart total quantities, and single product quantities. You enter the thresholds and the corresponding discounts. It’s up to you if you want to offer all three kinds of volume discounts, or pick one or two.

Wholesale Club also gives you the opportunity to write cart upsell messages. These messages alert the customer to the volume discount(s) available and encourage them to hit the spend or quantity threshold that will give them a discount.

For all the details on volume discounts in Wholesale Club, take a look at the resources below.

Volume Discounts Resources

To see the Volume Discounts feature in action, check out the Wholesale Club demo store. You can also read more in our Help Center, or check out the video below!

Not using Wholesale Club yet? Head to the Shopify App Store to install now!

This blog post is brought to you by Liz, Orbit’s Marketing Generalist.

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