How Tiered Pricing & Bulk Discounts Can Increase Sales on Shopify In 2025

Shopify Tiered Pricing

If you want to encourage your customers to purchase more, tiered pricing is the way to go. Here’s why it works!

Customers love value—getting the best deals for the lowest price. Tiered pricing helps you provide just that by rewarding bulk purchases with discounts. The more attractive your offers, the more likely customers are to engage and make purchases.

With Shopify tiered pricing, you can offer quantity-based discounts, boosting sales while ensuring customers get the deal they’re looking for. It’s a win-win!

To better understand how tiered pricing works, we will break down its definition with examples. We’ll explore how it boosts sales and share some best practices so you can make the most of tiered pricing on your store. 

What is Tiered Pricing and Bulk Discounts? 

Let’s say you want to encourage customers to buy more shirts from you, so you charge $10 per shirt if 1 to 5 shirts are bought and $9 per shirt if 6 to 10 shirts are bought. This is a Tiered Pricing strategy. Through this method, you entice customers to buy more to save more, while selling more items. You reward customers with a discount as they make bulk purchases. 

Examples of Tiered Pricing (Bulk Discounts)

You can specify prices for different quantity ranges as you like. To help you get a better idea, here are some examples: 

Example 1:

  • 1 to 10 units ($20 per unit)
  • 11 to 20 units ($15 per unit)
  • 21 to 30 units ($10 per unit)

Example 2: 

  • 1 to 5 units ($10 per unit)
  • 6 to 10 units ($9 per unit)
  • 11 to 15 ($8 per unit)

Tiered Pricing vs Volume Pricing 

Now, after reading about tiered pricing, you might be wondering how it is any different from volume pricing. While they are pretty similar there is one difference that we will explain with a simple example. 

Tiered Pricing: Buy 1-10 units at $10 each, 11-20 units at $8 each, and 21+ units at $6 each. If a customer buys 15 units, they pay $10 for the first 10 units and $8 for the next 5.

Volume Pricing: Buy 1-10 units at $10 each, 11-20 units at $8 each, and 21+ units at $6 each. If a customer buys 15 units, they pay $8 for all 15 units.

7 Ways Tiered Pricing and Bulk Discounts Increase Sales 

Using tiered pricing discounts in your Shopify store offers several advantages. Here are some ways tiered pricing can help increase sales:

  1. Increased average order value: Tiered pricing is a clever way to get customers to buy more. The idea is simple—offer better prices when users purchase larger quantities. Your customers will save money, and you see a nice bump in your average order value.
  1. Repeated purchases: Offering bulk discounts is a great way to build a loyal customer base. Shoppers who love a good deal will keep coming back, seeing your store as their go-to for value-packed purchases. It’s all about creating trust and showing them they’re getting the best bang for their buck!
  1. Improved customer satisfaction: Through tiered pricing, you give customers more flexibility and better value, especially when buying in larger quantities. It makes them feel like they’re getting a great deal, which leads to a happier shopping experience and increases the chances they’ll stick around for future purchases. 
  1. Diverse customer targeting: Tiered pricing lets you offer customer-specific pricing, making it easier to meet the needs of different buyers. Some may prefer smaller quantities due to budget or needs, while others might go for bulk purchases to save more. This flexibility ensures your store appeals to a broader audience.
  1. Stock clearance: Tiered pricing can aid in better inventory management by encouraging bulk purchases. This is especially useful for clearing out excess stock or promoting specific products, which can reduce storage costs and improve cash flow.
  1. Competitive advantage: If your close competition provides volume discounts, you should, too, in order to gain a competitive advantage. Although not to copy the competition altogether, but you can design your own strategy in a way that brings in the most realistic profits while making customers believe you are the best choice for bulk discounts. 
  1. Engaged Customers: Tiered pricing keeps customers coming back by offering better deals as they buy more. In competitive markets, it encourages them to commit, helping you hold onto your market share and fend off new competitors.

How to Set Up Tiered Pricing and Bulk Discounts on Shopify

To set up tiered pricing discounts for your store, you will need to use an app like the Shopify Dynamic Pricing. You will firstly install and activate the app and then follow these steps:

  • Create multiple rules to enable tiered prices of your choice 
  • Choose products and collections on which tiered prices will apply 
  • Display custom tiered pricing tables and define discount values
  • Choose customers tags to target the right audience 
  • Specify start and end dates for tiered prices to apply 
  • Hide prices and add to cart where needed 

If you wish to explore setting tiered prices in detail, checkout our detailed article

Setting Up Tiered Pricing – Best Practices 

Below are some ideal practices to keep in mind before offering tiered prices on your store: 

  1. Don’t Overcomplicate the Discount Structure: Adding too many tiers in the pricing table can overwhelm customers and make the process confusing. The rule of three works well here—too many choices can lead to analysis paralysis. It might be tempting to include more tiers, but too many options often result in confusion and even cart abandonment. Keep it simple to keep customers engaged!
  1. Don’t Offer Discounts Too Often: You should refrain from giving bulk discounts too often as it can damage the reputation of the brand and customers may get into a habit of “waiting” for discounts before purchasing. Over discounting can also end up hurting your profit margins and potential customers may question the quality of your product/service
  1. Tailor Discounts to Various Customers: While offering bulk discounts seems simple enough, you need to have a target market in mind. You can not offer the same type of discount to B2B and B2C customers as they have their own needs. Consider your audience and what they are looking for before offering them bulk discounts. 

Conclusion

In conclusion, tiered pricing and bulk discounts on Shopify can drive significant sales growth. By making use of Shopify tiered pricing and bulk discounts, you can encourage customers to buy more, leading to increased order values and customer satisfaction. 

The key is to keep the structure simple, target the right audience, and avoid overcomplicating your discount strategy. You can consider using a Shopify bulk discounts app to implement tiered pricing strategically to stay competitive, retain customers, and maximize your revenue.

Frequently Asked Questions 

Q1. What is tiered pricing?

Ans. Tiered pricing generally refers to quantity-based pricing, where customers get higher discounts if they buy in bulk. E.g. the per-unit cost will drop as more items are purchased. 

Q2. Does Shopify offer tiered pricing?

Ans. Shopify does not offer tiered pricing by default, but you can use a tiered pricing app like the Shopify Dynamic Pricing app to do the trick. It lets you create multiple tiered pricing tables and customize discounts based on customers and products. 

Q3. What is the difference between tiered and volume pricing?

    Ans. With tiered pricing, the price changes for different quantity ranges. For example, if you buy 15 items, you’ll pay one rate for the first 10 and a lower rate for the next 5. In volume pricing, it’s simpler—you get one rate for all 15 items based on the total quantity. Explore differences in detail in the article.

    Q4. What is the difference between fixed and tiered pricing?

      Ans. With fixed pricing, the price stays the same no matter how much you buy. In tiered pricing, the price decreases as you buy more, with different rates for different quantity ranges.

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      David Walker

      I am an experienced content writer specializing in e-commerce and AI. I focus on crafting insightful articles and providing guidance to help individuals excel in affiliate marketing, e-commerce, and Web Development

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