Kite now offers tiered pricing or a “Buy X Items for Y Amount” feature that allows for scalable discounts based on how many items are purchased. For example, you can create enticing offers such as "Buy 2 for $50" and "Buy 4 for $90," making customers go for the higher quantity option.
This flexible feature lets you apply discounts not just to individual products, but across collections or selected groups of items.
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Why We Built Tiered Pricing Feature?
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Tiered pricing or “Buy X Items for Y Amount” provides a strategic advantage to online store owners as they can maintain better control over profitability compared to the "Buy One, Get One" (BOGO) approach.
Let’s understand from a tiered pricing example -
Consider a candle retailer: under a BOGO deal, if candles are priced at $20 each, the effective price drops to $10 when two are purchased, sharply reducing revenue.
In contrast, a tiered pricing scheme such as offering one candle for $20, two for $35, and three for $45, encourages more purchases while preserving a higher revenue per unit than BOGO, with each candle in the three-pack costing $15.
This method increases overall profitability while incentivizing customers to buy more.
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Benefits of Tiered Pricing For Your eCommerce Store
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1. Increase Average Order Value (AOV): Customers are incentivized to buy more items to take advantage of greater savings, which boosts the average value of each order.
2. Wider Appeal: Unlike BOGO, which might appeal only to those looking for a deal on two items, tiered pricing attracts a broader customer base. From budget-conscious buyers to those willing to spend more for a better deal, everyone finds something appealing.
3. Improved Customer Satisfaction: Customers value deals that seem personalized and offer more bang for their buck. In scenarios like tiered pricing, bulk buyers are not only incentivized but also feel motivated by the perceived increase in value for their money.
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Get Started Now!
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Implement Buy X Items for Y Amount using our Kite app on Shopify App Store and watch as your Shopify store’s AOV skyrockets.
- Set-Up Guide: Learn how to set up tiered pricing with Kite‍
- See it in action: Visit our demo store
Use the flexibility and profitability of Tiered Pricing and make your discount strategy work smarter, not harder.
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