Bulk pricing, also known as quantity discounts, is a pricing strategy used by ecommerce and retail businesses to incentivize customers to purchase larger quantities of a product. This strategy is often used for products that have a low unit cost, such as wholesale goods or bulk items. The idea behind the pricing strategy is that by purchasing more items, customers will save money on the overall purchase.
Examples of bulk pricing
For example, a retailer may offer a bulk discount of 10% for purchasing 10 or more of a product. This can be an effective way to increase sales and move inventory for the retailer, while also providing a perceived value for the customer.
Bulk pricing can also be used as a strategy to target specific customer segments, such as businesses or wholesalers. With the pricing approach, retailers can attract customers who are looking to purchase large quantities of a product at a discounted price.
In ecommerce, bulk pricing can be implemented through the use of coupon codes or special promotions. Retailers can also use dynamic pricing software to automatically adjust prices based on the quantity of items in a customer’s cart.
Bulk pricing is a common pricing strategy used by ecommerce and retail businesses to incentivize customers to purchase larger quantities of a product, thus increasing sales and moving inventory. This strategy is especially effective for products with low unit costs and can also be used to target specific customer segments, such as businesses or wholesalers.