1. QUANTITY BREAK DEFINITION

Quantity break, also frequently known as quantity discounts or tiered pricing, could be defined as the pricing strategy used by many businesses in which the price per unit decreases once the quantity within certain tiers increases. According to recent market studies, consumers would find more interest in a business if they offer more with a lower price. Therefore, this pricing method could be strategically used as a means to efficiently increase the average order value for eCommerce stores.

The most frequent form of quantity break in eCommerce is volume discounts in which customers will enjoy a discounted price for buying a specific quantity of goods.

2. AN EXAMPLE OF QUANTITY BREAK

For instance, your business is applying the quantity break strategy to a certain good in your store. For the first 5 items of the same kind, the price would be $15 each. Then, the price lowered to only $10 for the next 5-10 items. From the 10th item, the final price would be only $7.50 each. However, do keep in mind that these numbers are just an implementation for this pricing strategy and thorough calculations should be made before opting for quantity break.

3. QUANTITY BREAK BENEFITS

• Increasing revenue

By letting your customers enjoy a discounted price for shopping in bulk, your business could also witness an increase in profit. 

• Increasing wholesale orders

Quantity break allows you to set up a flexible pricing scheme for wholesalers and big traders, which could help further develop your business in the long term.

• Higher conversion rate

As discussed above, customers would find a discounted price attractive, thus quantity break could be more attractive to a shopper wanting to buy goods in bulk. 

• Easy-to-apply strategy

To make it short, every business can apply this pricing strategy. In fact, if possible, you can totally apply this pricing strategy on every single product in your store.