A volume discount is a price reduction a supplier offers when a buyer purchases larger quantities, so the per-unit cost drops as the order size grows. It rewards bigger commitments and is one of the most common levers in B2B pricing. In quotes and catalogs it usually appears as tiered pricing, where each quantity band carries its own unit price.
How it works
Volume discounts are typically structured as tiers. A supplier might set a base price for 1 to 49 units, a lower price for 50 to 199 units, and a lower one again for 200 or more. The buyer sees the exact unit price for each band, so the incentive to consolidate an order into a higher tier is clear. Some suppliers apply the discount as a percentage off list, others quote a fixed price per tier. A related model is the cumulative discount, where quantities add up across a period or contract rather than per order.
Why it matters
For the buyer, a volume discount lowers landed cost and makes larger, less frequent orders worthwhile. For the supplier, it encourages bigger deal sizes, improves inventory planning, and can lock in a customer against competitors. The tradeoff is margin, so tiers are usually set to protect a floor while still moving more units.
In B2B quoting on Shopify
Shopify’s native catalogs support quantity rules and volume pricing for B2B customers, but not every negotiation fits a fixed price list. When a buyer requests a custom quantity, you often need to quote tier pricing on the spot. A quoting workflow lets you apply the right unit price per line, show the buyer the saving, and turn the agreed figure into a real order they can accept and pay for. See the B2B quoting glossary for related terms, or pricing for plan details.
Example
A packaging supplier lists boxes at 1.20 each. At 500 units the price falls to 1.05, and at 2,000 units it drops to 0.92. A buyer needing 1,800 units sees that ordering 2,000 costs less in total, so the tier nudges the larger order.