Tiered pricing is a pricing strategy used by e-commerce businesses to offer different prices based on the quantity of products or services purchased. Instead of a single price per unit, the cost decreases as the quantity increases, allowing customers to save more when they buy more. In a tiered pricing model, the price per unit changes once a customer purchases a certain number of items. For e-commerce owners, implementing tiered pricing can be a powerful tool to increase average order values, clear out inventory, and build stronger relationships with customers. It’s especially effective for products that customers are likely to purchase in multiples or over time.
This means that the more a customer buys, the less they pay per item.
