Offering different deals and discounts can make your customers happy, which in turn helps increase your conversions and reduce cart abandonment.
The best way to achieve this is through tiered pricing and discounts on Shopify.
Studies show that nearly 80% of customers are more likely to place an order, even with a new brand, if a discount is offered.
Major Shopify brands like Elle Fit Active, Lightforce Engraving, and Just Glow use tiered discounts to encourage customers to buy more.
However, if not done properly, you might lose customers due to inaccurate discount calculations.
Keep reading to learn the 3 best ways to offer tiered pricing on Shopify. And if you're looking to create tiered discounts for specific B2B or wholesale customers, we’ve got you covered too!
How to Apply Tiered Discount on Shopify
To easily apply tiered discounts on your Shopify store, use the Volume Discounts Dealeasy app.
This app is designed specifically for volume discounts and requires no technical experience to set up.
You can download it for free from the Shopify app store.
1. Volume Discounts Table (on Product Page)
First, we have the classic volume discounts table.
With this option, all your discounts will be displayed in a table format on the product page.
A well-designed volume discount table gives your customers a clear understanding of the pricing structure.
Customers can quickly grasp the discount offered and the amount saved, all in one view.
Here’s a visual walkthrough of how the volume discount table works:
2. Quantity Breaks (on Product Page)
Next, we have the Quantity Breaks option.
With this option, you can display both the regular price and the discounted price side by side.
Showing both the standard price and the discounted price helps your customers better visualize the savings.
This way, your customers can see how much they save as they spend, encouraging them to buy more.
The best part is that with quantity discounts on Shopify, you can even highlight popular discount options using this method.
3. Progress Bar (on Cart Page)
With the Progress Bar, you can display different discounts and gifts that customers can unlock as their cart value increases.
The more they purchase, the more rewards they can earn. That’s how it works.
This can include rewards like a free gift, free shipping, or an additional discount. The progress bar from Dealeasy is fully customizable, so it can seamlessly blend with your store’s theme without any hassle.
It also keeps your customers informed about how much more they need to spend to unlock their rewards.
Tiered Discount for B2B/Wholesale Customers
If you want to offer different tiered discounts to B2B or wholesale customers, consider using the Shopify Catalog feature.
This feature allows you to create unique discounts for different stores at the same time, without any overlap or confusion.
The discounted price will only be visible to the designated store owners, ensuring that other customers cannot access these special prices.
Benefits of Using Tiered Discounts on Shopify
Offering tiered discounts on your Shopify store comes with a ton of benefits. From enhancing customer satisfaction to increasing your sales, it does it all. Here is a list of it for your better understanding.
Increases Average Order Value (AOV):
The "buy more, save more" strategy of tiered discounts encourages customers to spend more, which automatically boosts your average order value and increases profits.
Better Conversion Rate:
Offering tiered discounts significantly improves your conversion rates. It often helps convert traffic into sales, as the special offers prompt customers to complete their purchase before the deal expires.
Competitive Advantage:
With tiered pricing and discounts, you gain a competitive edge. This can attract more customers and establish your store's credibility and authority in the eCommerce market.
Gain Customer Loyalty:
Once you deliver on your promises, repeat customers will grow quickly. Offering exclusive tiered discounts for loyal customers ensures they keep coming back for more.
Now that you understand the different tiered discounts and their key benefits, choose the one that best suits your store.
Frequently Asked Questions
1. What is a tiered discount on Shopify?
Tiered discounts on Shopify is a pricing strategy where you offer better deals to customers as they make larger purchases. The larger the order, the bigger the discount that's what tiered discounts are all about.
2. Should I download an app to apply a tiered discount on Shopify?
Downloading an app like the Volume Discounts Dealeasy app to offer tiered discounts can be beneficial for your Shopify store. However, if you prefer not to use an app, you can also explore native Shopify options to set up tiered pricing.
3. How do tiered discounts impact customer satisfaction?
When customers feel like they are getting a great deal and true value for their money, their satisfaction automatically increases. This positive experience triggers psychological satisfaction, making them more likely to return to your store.
4. What are the mistakes to avoid when implementing tiered pricing?
Some common mistakes include failing to conduct adequate market research and creating a complicated pricing structure. It's crucial to clearly communicate the unique value of each tier and continuously optimize your pricing strategy based on customer feedback and performance metrics.
5. What are the main challenges in implementing tiered pricing?
Managing multiple pricing tiers can be complex and requires ongoing adjustments based on customer needs. Additionally, determining the right price for each tier can be tricky, and it may require testing to find the optimal pricing strategy.
