Did you know that businesses offering volume-based pricing see a 23% increase in bulk order value on average? If you're running a Shopify store and looking to expand into wholesale, volume pricing is one of the most effective strategies to drive larger purchases and maximize revenue.
Wholesale volume pricing allows businesses to offer discounts based on the quantity purchased, encouraging customers to buy in bulk. Whether you're selling apparel, office supplies, or B2B products, implementing volume-based pricing can significantly boost your sales and customer loyalty.
In this guide, we’ll cover everything you need to know about setting up wholesale volume pricing on Shopify, its benefits, and how to optimize it for your business.
What Is Wholesale Volume Pricing?
Wholesale volume pricing is a pricing strategy where discounts are applied based on the number of units a customer purchases. The more they buy, the lower the per-unit cost.
Example:
- Buy 10-50 units: 5% discount
- Buy 51-100 units: 10% discount
- Buy 101+ units: 15% discount
This method incentivizes bulk purchases and provides better value for B2B customers who regularly buy in large quantities.
Benefits of Wholesale Volume Pricing for Shopify Stores
1. Encourages Bulk Orders
Offering volume discounts motivates customers to purchase more than they originally planned, increasing your average order value (AOV).
2. Builds Long-Term Customer Relationships
Wholesale buyers are more likely to return if they know they get better pricing for purchasing in bulk.
3. Helps Clear Inventory Faster
If you have slow-moving stock, volume pricing can help you sell more units quickly without deep markdowns.
4. Increases Revenue While Maintaining Margins
Even with discounted pricing, larger order sizes help offset margin reductions by boosting overall sales.
5. Strengthens Competitive Advantage
With competitive pricing structures, your store stands out against competitors who may not offer similar volume discounts.
How to Set Up Wholesale Volume Pricing on Shopify
Installing the App and Setting It Up
To set up wholesale volume pricing effectively, start by installing the Kumo - B2B Wholesale Tools app, the best Shopify B2B app for automating wholesale operations.
Steps to Set Up Pricing Rules
- Access Pricing Options: Once the app is installed, open the dashboard and click on Pricing in the menu.
- Add a Pricing Rule: Click on Add by Pricing to create a new rule.
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Set Discount Types: Choose between:
- Absolute Discount: A fixed amount subtracted from the price.
- Percentage Discount: A percentage reduction based on the original price.
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Configure Volume Discounts:
- Go to the Volume Discount section.
- Specify quantity thresholds and corresponding discounts. For example:
- 10 units: 10% discount
- 20 units: 17% discount
- 30 units: 22% discount
- Discounts increase as quantities go up.
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Select Discount Application Type: Decide how the discount applies:
- Ordered: Applies to the total order quantity.
- Product Variant: Applies to specific product variants.
- Item: Applies to individual items.
- Save and Test: Save your pricing rule and test it by adding items to the cart to ensure the discount applies correctly.
Pro Tips for Effective Wholesale Volume Pricing
1. Know Your Profit Margins
Ensure that your discount tiers still leave room for profitability while offering an attractive deal.
2. Segment Your Wholesale Customers
Offer different pricing tiers for small wholesalers vs. large distributors.
3. A/B Test Different Discount Structures
Experiment with different pricing models to determine the best-performing discount thresholds.
Conclusion
Wholesale volume pricing is a powerful tool to increase bulk orders, enhance customer loyalty, and optimize inventory management. By implementing automated pricing tiers, clearly displaying discounts, and promoting your wholesale offers, you can maximize your Shopify store’s revenue.
Ready to Get Started?
Try Kumo - B2B Wholesale Tools today and automate your wholesale pricing strategy with ease!
