Impact of volume discounts on Shopify?

[Enon]

Has anyone implemented dynamic pricing or volume-based discounts on Shopify? Curious how it's impacted customer retention and order value.

[Akohub]

Hey there @Enon this is Alexis from Akohub. We've been working with many Shopify brands, from big to small, including Nike, Logitech and LINE Friends Taiwan. We hope our expertise would be helpful! Based on our experience, volume-based discounts can definitely help boost order value by encouraging customers to buy more in one go. For example, offering a “Buy 2, Get 10% Off” or similar tiers can be really effective, especially for products that customers tend to stock up on. For example, GreenLeaf Organics, an online skincare store, boosted their average order value by 25% through volume-based discounts like “Buy 2, Get 10% Off” and “Buy 3, Get 15% Off,” encouraging customers to purchase more in a single order. To build on this, they’re now exploring a loyalty program for long-term retention. 

However, for long-term customer retention, we’ve found that loyalty programs can work even better. A well-designed loyalty program rewards customers for repeat purchases, giving them points or perks that make them want to keep coming back. It’s a nice way to keep them engaged over time rather than just for one larger purchase. Of course, you can try out our app Ako Marketing (all-in-one marketing app that combines loyalty, retargeting and CRM). Our client, SMOOSY boosted their revenue by 50% with our app. You can learn from them in our case study here

So, if you’re looking to boost retention as well as order value, maybe try combining both strategies. Use volume discounts to increase order sizes and a loyalty program to build that repeat customer base. It’s worked well for us, and customers seem to really appreciate the added value. Good luck!

[Ellie-BOGOS]

Hi @Enon 

This is Ellie from BOGOS, the #1 Shopify Promotion App!

Dynamic pricing and volume-based discounts are among the most popular types of sales promotions for Shopify merchants. Based on my experience, this might be how it affect the business:

• Higher customer satisfaction rate, because these discounts make customers feel like they are getting the best available price
• If the discount is appealing enough, customers will want to buy regularly -> increase repeated purchase
• Both these types discount encourage bulk purchases and make customers increase their order size, which means they are likely to spend more in one purchase
• These discounts work for many merchants because they are good at promoting exclusivity and personalization

Some Shopify stores have reported increase in AOV by ~ 20% after using volume discounts or dynamic pricing. But keep in mind that these numbers do not apply to all industries, and depending on your strategies, customers reaction will be different!! (sources: Amazon, Shopify)

[LizHoang]

Hi @Enon , thanks for your question. 

Many Shopify merchants have successfully implemented dynamic pricing and volume-based discounts to boost customer retention and average order value (AOV). Offering discounts based on the quantity purchased or the cart value encourages customers to buy more in one order, which can lead to higher overall sales and improved customer loyalty.

For example:

- Volume Discounts: Offering discounts like "Buy 1-3, get 10% off" or "Buy 4-6, get 15% off" incentivizes customers to increase their order quantity. This can particularly benefit merchants selling consumables or frequently repurchased items.

- Buy X, Get Y Free (BXGY): An approach like "Buy 2, Get 1 Free" adds extra value for customers and increases purchase size, making it more likely they’ll return for more.

- Tiered Discounts: Offering discounts that grow with cart value, such as "$10 off $50, $25 off $100," motivates customers to spend more per order.

If you're looking to implement dynamic pricing or volume-based discounts on Shopify, I recommend you try the AOV Free Gift - Buy X Get Y + BOGO, which offers a variety of upsell and gifting options, including Buy One Get One (BOGO), Collection Gift, Quantity Gift, Volume Discounts, and Buy X Get Y (BXGY), all designed to encourage larger purchases and quicker checkouts. Plus, it integrates seamlessly with Shopify discount codes, so customers can easily combine offers. Additionally, the app offers engaging widgets to capture attention, and 24/7 one-on-one support is available to guide you every step of the way. 

I hope my answer is helpful to you!

Liz

[Bundler-Manuel]

Hey there @Enon from my experience with working with a lot of store owners, volume discounts can have a positive effect if they are set in the right way. However one must not get carried away and tie in their entire product values to discounts, meaning that it is important to ensure that those products are higher quality than they are actually being sold at with those discounts. As someone in the replies already mentioned, it might be more beneficial to include loyalty programs instead or after a certain number of months of using the discounts.

[DaisyVo]

Hi @Enon 

Implementing volume-based discounts on Shopify can have a significant impact on both customer retention and your average order value (AOV). I’ve seen this work effectively for many Shopify stores, so let me break it down for you.

Impact on Customer Retention

Volume discounts give customers a reason to come back. If they know they’ll get better pricing when buying more, they’re likely to stick with your store rather than shop around. For example, offering a "Buy 2, Get 1 Free" deal or tiered discounts (like 10% off when buying 3+ items) can create a sense of loyalty.

It’s also great for businesses that sell consumables or products bought in bulk, like beauty items, household goods, or office supplies. Repeat customers often feel like they’re saving more, and that increases their trust and satisfaction with your brand.

Impact on Order Value

Dynamic pricing and volume discounts naturally encourage customers to buy more per order. For example, if you sell candles and offer a 15% discount on orders over $100, many shoppers will add that extra item just to hit the threshold.

Here’s a quick example of how it works:

• Without discounts: A customer buys 1 product for $20.
• With volume discounts: A customer buys 3 products for $50 (instead of $60 full price).

While your margin per item might drop slightly, your total revenue and average order value go up, which is a win!

How to Set It Up on Shopify

If you’re ready to try this, you can use apps like Volume & Tiered Discounts by HulkApps or Discounted Pricing by Booster Apps. These make setting up dynamic pricing super simple.

Here’s a code snippet for a basic Shopify Script (if you use Shopify Plus):

Input.cart.line_items.each do |line_item|

  if line_item.quantity >= 3

    line_item.change_line_price(line_item.line_price * 0.85, message: "15% Volume Discount Applied")

  end

end

Output.cart = Input.cart

This script applies a 15% discount when a customer buys 3+ items. Of course, if coding isn’t your thing, an app will handle this for you without the technical work.

My Personal View

From what I’ve seen, this strategy works well if your margins allow it. Just make sure to clearly display the discounts on your product and cart pages—customers should see their savings upfront to encourage bigger purchases. Also, test different discount thresholds to find the sweet spot for your business. Sometimes, small changes (like offering a discount at 3 items instead of 5) can make a big difference.

If you need any other assistance, feel free to reply and I will try my best to help.
Best regards,
Daisy