Volume Discounts Overview

It is a proven fact that most human beings love freebies regardless of product or service type. We love to get more value than we pay for. As an eCommerce store owner, using this fact to your gain is very beneficial, because you get more sales and more goods and services exchanged for money. As long as you are still covering your costs, you are sure to make a profit. Often times there are enough holidays or anniversaries to tie discounts and other bonanzas to.

Most discounts entail giving a free gift or even giving a fixed amount off the product price. We have written about how to set up discounts, and the different types of discounts you could use to achieve more sales e.g. role based discounts.

Volume Discounts, what are they exactly?

There are different definitions to this phrase, according to the application. Some say that volume discounts are actually BOGOFs: Buy One Get One Free. Others say that volume discounts are in place when the more of a product you buy, the less the unit cost price for each one – this is also called ‘bulk discounts’ because you buy in bulk to benefit from the price reduction.

Both definitions are actually correct. What are the major benefits of giving out volume discounts? Is it worth the trouble? Yes it is, and here are some reasons and scenarios:

  • Clearing inventory: volume discounts are the way to go when you need to clear out inventory from your store. You may have goods that may soon expire or goods that are linked to seasons e.g. Christmas. It is best to give out bulk discounts for interested buyers to that such goods are cleared from your store.
  • Attract New Customers: giving out volume discounts ensures a higher interest from customers about the goods and services in question. Everybody wants to reduce costs, and since the unit cost is lessened in a bulk discount, the customer usually chooses your store above others that do not offer such a promo.
  • Retain old customers: clients that have bought goods from your online store will definitely return to buy more when they here there is a volume discount running. To them, it means that they are buying the product even cheaper than before their initial purchase. Every human loves to save money and cut costs.
  • Increased marketing: People love sharing good news, and volume discounts are no exception. Several of your current customers will spread the word about your bulk discounts, even if they never purchased the product before. The fact that they are on your newsletter list, and get to hear of it, will prompt them to tell others, especially if their previous experience was good at your store.


Last updated on March 3, 2023