Increase Your Shopify Store Average Order Value With Volume Discounts

Turning visitors into customers is difficult. But what’s more difficult is nudging those customers to buy more during that visit. That’s why most Shopify stores struggle to increase their average order values. But there’s one hack that can nudge shoppers to buy more - volume discounts.Think about it.You’re planning on purchasing a new towel. But when you reach the store, you realise that if you buy 2, you can avail a 10% discount. And if you buy 3, you get a 20% discount on the cart total.So now you end up giving your purchase more thought.Once that one towel goes for a wash, you’re obviously going to need another one. And what if a guest comes over? You’re going to need a spare towel too.Now suddenly you see more logic in buying 3 towels. And at that discount, it only gets better. Right?This is the usual consumer psychology.We all tend to indulge in shopping a little more when we can avail more discounts. Take a minute to think about how the ‘buy 3, get a 50%’ offer pulled you into the brick and mortar store the last time!In this article, we’re sharing the different types of volume discounts and custom pricing you can offer to shoppers to nudge them to buy more from your Shopify store.

Types of volume discounts and custom pricing that can increase Shopify sales

1. Percentage discounts

One of the most common discounts that we see successful stores make use of, is a storewide percentage discount. This means that the discount is applicable on all the products that the store is selling.For instance, if you set up a 20% discount, all the shoppers visiting your store can avail it on all the products.Such discounts are usually set up during the sale season or for new shoppers to nudge them to make their first purchase - and preferably buy more from your store during that visit.

percentage discount - volume discounts

2. Spend X amount, get discount

Another smart way to nudge shoppers to add more items to their cart and buy more during their visit is to promise them a discount on hitting a specific cart total. So basically, the discount is applicable only when the cart value is higher than the amount you specify.For instance, you can set up the offer in such a way that if the cart value is higher than $100, the shopper gets a $20 discount on the cart total.

spend x amount volume discounts

3. Buy X quantity, get discount

One more strategy that has proven to increase the average order value for Shopify stores, is to nudge shoppers to add more products to the cart. Basically, you offer a discount on the quantity of the products they’re purchasing instead of the cart total here.For instance, if the shopper buys a specific, pre-defined quantity or more of the same product, the store offers a discount on the cart total. This is the example we gave when we were talking about those towels!

buy quantity volume discounts shopify

4. Volume discounts

Such discounts are perfect for encouraging bulk orders on your store. You can set up a table that shows the discounts that shoppers can get for purchasing 5, 10 or 25 pieces of the same product.For volume discounts, you can either set a percentage off for the volume of products being purchased or a certain fixed amount that will be deducted from the cart total. Being able to see the quantity and discounts associated with them clearly, shoppers are more inclined to make bulk purchases.

volume discounts shopify

Learn how to create an offer on the Volume Discounts app here.

Creating volume discounts for your Shopify store

Now you might be wondering how difficult it can be to set up volume discounts or offer custom pricing on your store, let alone specific products. But that’s not true!With an app like Volume Discounts, you can create a new offer in a matter of minutes. All you need to do is install the app, head over to its dashboard and follow these steps:1. Click on 'Offers' under the menu bar.2. Select the button 'Create New Offers' on the right side of the screen.

step 2 volume discounts shopify

3. You will be shown a dropdown menu to let you choose the type of offer you want to provide. You can choose between three types of discounts here:

  • Volume discount
  • Spend amount
  • Buy X for $

In this example, we are selecting ‘Volume discount’.

step 3 volume discounts shopify

4. Next, you can fill in the quantity and the discount that the shopper can avail. Click on 'Add another tier' to add other volume discounts.5. Next, you need to select the products or collections for which the discount is shown. You can type in the product/collection and autofill will show results.6. Change your option for how you want to sum up quantities, if it is per variant, per product, or across all selected items.

step 6 volume discounts shopify

7. Fill in the message you want to show shoppers when they see the volume discount— product page message, upsell message, and success message.8. Additionally, you can add a start time, end time, and choose to show the offer to only tagged customers.9. Click on ‘Save’.

step 9 volume discounts shopify

10. Go back to the ‘Offer’ page to see whether the offer is live. You can toggle the switch on and off based on the offer you want to continue running for a specific time frame. Create as many as you want!

step 10 volume discounts shopify

And you’re all set to increase your Shopify store’s average order value.

How to promote your volume discounts to increase average order value?

Now a lot of shoppers may not be aware of the discounts you’re offering on bulk or volume purchases. In this case, you need to communicate this clearly with your customers by creating a Shopify marketing strategy around it. Here’s what you can do!

1. Display your volume discounts on the site

If you’re offering volume discounts or custom pricing on bulk orders site-wide, make sure you use a static banner across all the pages to promote the same. Use this space to clearly state what the offer is and if there are any terms and conditions associated with it.On the other hand, if you’re offering volume discounts on a specific product or a product variant, make sure you display it on that specific page. You could implement a banner to do so or display a discounted pricing table as in the example we shared before.

volume discounts shopify

This makes sure that your offer gets noticed by the shopper.

2. Send them an email notifying them about the discount

Take the current situation into consideration. A lot of online shoppers are looking at making bulk purchases from stores. But at the same time, they’re also looking at good deals because they need to stock up on a lot of items at the same time and may have a monthly budget constraint.Now instead of having them use the search engine to seek out stores that are offering volume discounts, you can send them an email to notify them about it. Let the email clearly state what type of custom pricing or volume discount you’re offering, what products is it applicable to and if there’s anything else they need to know about.

3. Notify them using web push notifications

You’ve set up some new volume discounts on products and you want to let your customers know about it as soon as possible. One of the most promising channels here to do such promotions is web push notifications.Send in a quick message to your subscribers letting them know that bulk purchase or volume purchase discounts are now available on your store. To make it even more seamless for the consumer to shop, make sure the call-to-action in the web push notification links them to the page with the offers.

4. Promote it using social media and search advertising

A lot of consumers start their online shopping journey from social media or the search engine while looking for specific products. So as soon as you set up volume discounts on your Shopify store, create an advertising strategy to reach your target market where they are the most active!For example, with the COVID-19 chaos, we’re all looking for products on the search engine more often than not. Having a search ad promoting how you’re offering 20% off on bulk purchases on your site, might just be what your customers are looking for!

5. Push out a message on Facebook Messenger

Another channel that a lot of internet users are currently active on is Facebook Messenger. While they’re using the platform to stay connected with their friends and family, you could also use it to let them know of the active volume discounts and offers available on your Shopify store.This does two things - one, makes them aware of the offers you have and two, makes them more likely to share it with the friends and family they’re talking to.Also read: 10 tips to keep your Shopify store running during Coronavirus outbreakAre you using volume discounts and custom pricing on your Shopify store to entice customers and make them buy more? If not, it's time you up your game to increase your average order value.

Install the Volume & Discounted Pricing app today.

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Percy’s Powder

Australia

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CAINTÉ

Australia

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SpaceTek

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"I've had the app for about 2 weeks now and it has helped me get a few extra orders. I wasnt sure if it would really help but it’s increased sales by about 20% so far and clients generally dont mind waiting because its very clear that they are placing a back order."

Legion Health

Australia

"I just started using the app and so far I am loving it. It helped me launch my pre-orders and allows me to collect orders on items that have sold out for the time being. A plus for my revenue stream. The support staff is very helpful and patient. Absolutely recommend this product."

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Kina & Tam

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"A very useful tool, simple and with a good customer support service. It has helped us to sell products that we do not have in stock yet."

Andromeda Moto

Spain

"Helps me inititiate pre orders for my customers so I can manage sales! Helps me better understand the demand I have coming in for an item."

Chérie Lane

United States

"I love this app because it gives our customers the option of pre-ordering their product before it's released. Plus it helps us to continue having revenue whilst we wait for our supply. I am very happy with the customer service too. Highly recommend this app!"

Percy’s Powder

Australia

"I've had the app for about 2 weeks now and it has helped me get a few extra orders. I wasnt sure if it would really help but it’s increased sales by about 20% so far and clients generally dont mind waiting because its very clear that they are placing a back order."

Legion Health

Australia

"Super easy to deal with, customer service is super responsive and great app for catching sales, thank you :)"

Kina & Tam

Australia

"I just started using the app and so far I am loving it. It helped me launch my pre-orders and allows me to collect orders on items that have sold out for the time being. A plus for my revenue stream. The support staff is very helpful and patient. Absolutely recommend this product."

Life Light Healing Services

United States

"A very useful tool, simple and with a good customer support service. It has helped us to sell products that we do not have in stock yet."

Andromeda Moto

Spain

"Increased sales by 20%. We always have pre orders waiting when our stock arrives. Recommended to anyone who wants to maximise bottom line."

SpaceTek

Australia

"Helped my business a lot! Perfect app. No problems in using it and very very good support. Would install it without a doubt."

CAINTÉ

Australia

"Helps me inititiate pre orders for my customers so I can manage sales! Helps me better understand the demand I have coming in for an item."

Chérie Lane

United States

"This app has made me soooo much extra money and helps with knowing exactly what inventory and sizes to restock! It’s easy to install and customize, not to mention the super fast and friendly customer service! I literally could not be any happier with this app. It is a game changer!"

MBM Swim

United States

"If you don't have this app your losing sales. No question about it. We are making so much more money on our new release items and out of stock products."

Seek Jesus

Australia

"The app increased my sales by at least 20%. Also their customer service is great. Fast response times and very helpful. I'd definitely recommend this app."

Lakes Rivers Streams

United States

"This apps brought me $900 on the free plan, I've upgraded now as I'm sure it'll do even better for my sales. The customer service is amazing, helped me with using the app super quick responses and solved my question with ease. Thanks!"

Zani Collective

Australia

"This APP has helped my brand grow in sales and customer service. The support is top-notch. I also find the APP immensely valuable in forecasting demand and what customers are willing to buy. I would recommend this APP if you are looking to grow and convert customers."

NOTIQ

United States

"Great product, I think after the 2nd day of using it we had already gotten $188 in sales from the reminders. It's nice because sometimes people return an out of stock item that we wouldn't normally announce a restock for. I also had a question about something and they responded very quickly in the chat."

Geode Swimwear

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"This app has been amazing for our company! We are able to have people sign up for an item that we are in the process of making, or an item that is out of stock. Once the item arrives, we generate a lot of sales from this app!”

Godiva's Secret Wigs

United States

"Great app!! I needed a way to quickly and efficiently alert my customers when items were back in stock and this app does the trick!! One of my favorite features is the "Text" option, so my customers get an almost immediate notification! This app has definitely increased sales!

Live Love Posh

United States

"This app is great for scaling businesses that are struggling to stay in stock. Before integrating this app I had trouble keeping track of customers who wanted to buy my products that were sold out, now as soon as I'm back in stock the sales come in by themselves.”

Xstream Audio Systems

United States

"This app is so valuable to our store. We like to alert customers of up coming new releases, so people sign up to be "notified". Helps us limit over ordering, and customers are happy as they get notified instantly when stock is in stock. Helps with sales and moving stock quickly. Fantastic App"

OzToyStore

United States

"This app has made me soooo much extra money and helps with knowing exactly what inventory and sizes to restock! It’s easy to install and customize, not to mention the super fast and friendly customer service! I literally could not be any happier with this app. It is a game changer!"

MBM Swim

United States

"If you don't have this app your losing sales. No question about it. We are making so much more money on our new release items and out of stock products."

Seek Jesus

Australia

"The app increased my sales by at least 20%. Also their customer service is great. Fast response times and very helpful. I'd definitely recommend this app."

Lakes Rivers Streams

United States

"This apps brought me $900 on the free plan, I've upgraded now as I'm sure it'll do even better for my sales. The customer service is amazing, helped me with using the app super quick responses and solved my question with ease. Thanks!"

Zani Collective

Australia

"This APP has helped my brand grow in sales and customer service. The support is top-notch. I also find the APP immensely valuable in forecasting demand and what customers are willing to buy. I would recommend this APP if you are looking to grow and convert customers."

NOTIQ

United States

"Great product, I think after the 2nd day of using it we had already gotten $188 in sales from the reminders. It's nice because sometimes people return an out of stock item that we wouldn't normally announce a restock for. I also had a question about something and they responded very quickly in the chat."

Geode Swimwear

United States

"This app has been amazing for our company! We are able to have people sign up for an item that we are in the process of making, or an item that is out of stock. Once the item arrives, we generate a lot of sales from this app!”

Godiva's Secret Wigs

United States

"Great app!! I needed a way to quickly and efficiently alert my customers when items were back in stock and this app does the trick!! One of my favorite features is the "Text" option, so my customers get an almost immediate notification! This app has definitely increased sales!

Live Love Posh

United States

"This app is great for scaling businesses that are struggling to stay in stock. Before integrating this app I had trouble keeping track of customers who wanted to buy my products that were sold out, now as soon as I'm back in stock the sales come in by themselves.”

Xstream Audio Systems

United States

"This app is so valuable to our store. We like to alert customers of up coming new releases, so people sign up to be "notified". Helps us limit over ordering, and customers are happy as they get notified instantly when stock is in stock. Helps with sales and moving stock quickly. Fantastic App"

OzToyStore

United States