3 Ways to Apply Tiered Pricing and Discount on Shopify

Providing different offers and discounts make your customers happy. This in turn helps increase your conversion and reduce cart abandonment. 

And the best way to do that is through tiered pricing and discounts on Shopify. 

Studies have shown that close to 80% of customers are more likely to place an order even with a new brand if a discount is available. 

Big Shopify brands like Elle Fit Active, Lightforce Engraving and Just Glow make customers buy more through tiered discounts. 

But if not done right, you might end up losing customers to inaccurate discount calculations. 

Read along to know the 3 best ways to offer tiered pricing on Shopify. If you wish to create tiered discounts for specific B2B and wholesale customers, then we have something for you as well!

How to Apply Tiered Discount on Shopify

To apply tiered discounts on your Shopify store without much trouble, go with the Volume Discounts Dealeasy app. 

An app specialized on volume discounts and requires zero technical experience. 

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, all your discounts will appear as a table on the product page. 

With a well designed volume discount table, your customers will get a clear idea about the pricing structure.

They can easily understand the discount provided and the money saved all in a single shot. 

Here is a visual walk through of how volume discount on a table works.

2. Quantity Breaks (on Product Page)

Next we have the Quantity Breaks option.

Using this, you can show both the actual price and the discounted price side-by-side.

The standard price and discounted price will help your customers visualize the discount better. 

This way, Your customers will see how much they save as they spend, encouraging them to buy more.

And the best part is, with the quantity discount on Shopify, you even get to highlight popular discount options in this method.

3. Progress Bar (on Cart Page)

With the Progress Bar, you can show various discounts and gifts for your customers to unlock, as the cart value increases.

The more they purchase, the more you can reward them. That’s how it works. 

And this includes a free gift, free shipping, and an extra discount. The progress bar from Dealeasy can be customized to blend with your store and theme without any hassle. 

It will keep your customers informed on how much more they have to spend in order to unlock the rewards.

Tiered Discount for B2B/Wholesale Customers

If you wish to offer different tiered discounts to various B2B and wholesale customers, then go with the Shopify Catalog feature. 

With this, you can create different discounts for different stores at the same time without any overlap or confusion. 

The discounted price will be visible and available only for the designated store owners and not for other customers. 

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 will encourage your customers to spend more. 

This will automatically increase your average order value and your profits simultaneously. 

Better Conversion rate: 

Offering tiered discounts helps greatly with your conversions. More often than not, it converts most of the traffic into sales. 

The offers will attract your customers to complete the purchase while the deal is live. 

Competitive Advantage:

With tiered pricing and discount, you will get the upper hand in the business. 

This will bring in more customers and establish your store’s credibility and authority in the ecommerce market. 

Gain Customer Loyalty:

Once you deliver on what you promise, your repeat customers will double and triple in no time. 

Providing exclusive tiered discounts for such repeat customers will keep them coming back again and again. 

Now that you know the different tiered discounts available as well 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 can offer better deals for customers as they buy more. 

The larger the order, the bigger the discount. That’s what tiered discount on Shopify means. 

2. Should I download an app to apply a tiered discount on Shopify?

Downloading an app such as the Volume Discounts Dealeasy app to offer tiered discounts would be beneficial for your Shopify store. 

You can go with the native options as well if you prefer to do it without an app. 

3. How do tiered discounts impact customer satisfaction?

The idea that they are getting a great offer, a true value for their money, will automatically increase the customer satisfaction.

It's all psychology and some happy hormones that will bring them back to your store every single time. 

4. What are the mistakes to avoid when implementing tiered pricing?

Mistakes to look out for while creating a tiered pricing includes inadequate market research and a complicated pricing structure. 

Focus on clearly communicating the unique value of each tier and continuously optimizing your pricing strategy based on customer feedback and performance metrics.

5. What are the main challenges in implementing tiered pricing?

Managing multiple tiers can also be complex and requires ongoing adjustments based on customer needs. 

Additionally, finding the right price for each tier can be difficult and may need testing to get it right.