Implement tiered pricing in your Shopify store

Tiered pricing is a discount strategy where customers pay different prices based on the quantity they purchase or other defined thresholds.

Unlike volume pricing, which applies a single lower price to all units once a purchase threshold is met, tiered pricing assigns distinct per-unit prices to specific quantity ranges, so each tier has its own rate. This approach allows merchants to offer more nuanced incentives that encourage larger orders.

For Shopify store owners, tiered pricing delivers key benefits:

However, many Shopify merchants face a challenge. Shopify’s native discount features offer only limited support for tiered pricing, often requiring manual workarounds that create friction and limit flexibility.

That’s why many merchants turn to powerful third-party apps like Barn2’s Shopify Discount Manager to implement advanced tiered pricing structures seamlessly.

In this article, I’ll walk you through setting up basic tiered pricing with Shopify’s native discount systems. We'll also look at advanced setup instructions with the Barn2 Bundles & Bulk Discounts app, and share best practices to maximize your pricing strategy’s impact.

Method 1. Setting up tiered pricing with Shopify native tools

Shopify’s built-in discount system allows store owners to create percentage or fixed amount discounts based on order value or quantity. While it isn’t designed specifically for tiered pricing, you can repurpose Shopify’s discount codes and automatic discounts to build a simple tiered pricing structure with quantity price breaks.

These discounts can be applied to specific products, collections, or across your entire store. For example, you could create separate discount codes like “BUY5” to offer 5% off when customers purchase 5 or more items, and “BUY10” for 10% off on 10 or more items.

Shopify also supports automatic discounts that apply based on cart quantity or order value, so customers don’t need to enter a code manually.

Limitations with Shopify's native tools

However, there are important limitations to consider with Shopify’s native tools:

• Only one automatic discount or discount code can be applied per order, so customers will always receive the best eligible discount. However, discounts cannot be stacked or split across tiers within a single order.
  • You can have a maximum of 25 automatic discounts active on your Shopify store at a time.
• Shopify’s native system does not support true tiered pricing, where different portions of the order are discounted at different rates. Instead, the entire qualifying order or product set receives the discount for the highest tier reached.
• There's no automatic visual indication of the tiered pricing structure on product pages.

Here’s what you need to do to set up basic tiered pricing with Shopify’s native discount tools:

1. From your Shopify admin, go to Discounts.
2. Click Create discount and select a discount type e.g. Amount off products.
3. Choose Automatic discount or Discount code.

4. Set the discount type (percentage or fixed amount).
5. Choose which products or collections the discount applies to.
6. Define the minimum quantity or order value that triggers the discount.
7. Save the discount and repeat for each pricing tier you want to create.

Here's what the cart page looks like when the discount is applied:

Method 2. Implementing tiered pricing with Barn2 Bundles & Bulk Discounts

For Shopify merchants seeking a truly flexible and powerful tiered pricing solution, the Barn2 Bundles & Bulk Discounts app is an excellent choice.

Specifically designed to handle sophisticated tiered pricing structures, this app removes the limitations of Shopify’s native discount system and automates bulk discounts without the need for customers to enter discount codes.

As compared to the manual workaround you need to do with Shopify’s native discount system, the Barn2 Bundles & Bulk Discounts app is easy to use and offers a streamlined setup. It enables true tiered pricing where different quantities trigger different discount levels automatically. And, it supports both percentage and fixed amount discounts giving you maximum flexibility.

Setting up tiered pricing with Barn2 Bundles & Bulk Discounts

1. In your Shopify admin, find Bundles & Bulk Discounts on the left sidebar and open the app.
2. Click Create New Discount.
3. Enter the Discount name and set the Discount type to Bulk pricing.
4. Select the products or collections where you want the tiered pricing to apply.
5. Set start and end dates to schedule discounts for special sales or promotions.
6. Add your desired pricing tiers — for example, 2-10 items get 5% off, 11–21 items get 10%, and 21+ items get 15%. You can create unlimited tiers.
7. Choose whether to apply percentage or fixed amount discounts per tier.
8. Set the Discount calculation option to Individual products.
9. Customize the pricing table’s appearance to match your store’s branding.
10. Save your settings, and the app will automatically manage tiered pricing without needing discount codes.

Why Barn2 Bundles & Bulk Discounts stands out

• True tiered pricing where each quantity range gets its own discount.
• Unlimited pricing tiers with automatic application at checkout.
• Visual tiered pricing tables improve transparency and boost conversions by letting customers see how much money they will save by buying in larger quantities.
• Choose which products and/or collections each tiered pricing table will be used on.
• Scheduling options for tiered pricing rules allow timed promotions which can be useful for seasonal sales.
• Customize the tiered pricing table design.

Best practices for maximizing tiered pricing impact

Implementing tiered pricing effectively requires a strategic approach that balances profitability, clarity, and customer behavior. Here are some actionable best practices to help Shopify store owners maximize the impact of their tiered pricing strategies:

Ensure profitability

Always set each pricing tier so it covers your costs and contributes positively to your margins. Conduct cost-benefit analyses and regularly review performance to identify the sweet spot for each tier and maintain profitability.

Clearly communicate tiers

Transparency drives sales. Use Barn2’s customizable tiered pricing tables directly on product pages to clearly display the savings customers get at each tier. Showing exact price breaks helps customers understand exactly what additional value they receive at each price point, encourages them to buy more, and boosts average order value.

Create buyer personas

Design your tiers to cater to distinct customer segments with different budgets and usage needs. For example, casual buyers, regular customers, and bulk purchasers should each find a tier that appeals directly to their buying behavior. Barn2’s flexible tier setup lets you tailor discounts for these segments precisely.

Limit the number of tiers

Keep it simple. The “rule of three” is effective i.e., offer three or four tiers to capture budget, mid-level, and premium buyers without overwhelming customers with choices.

Measure and optimize

Track key metrics such as conversion rates, average revenue per user, churn rate, and customer distribution across pricing tiers. This helps you identify which options drive profitability.

Optimize tiered pricing strategies

You can also use tracked data to make informed adjustments. Test different price points and feature bundles through A/B testing and customer feedback.

Scale with your business

As your store grows, revisit your tiered pricing strategy. Adjust tiers as your business expands to fit new customer segments, product lines, and market conditions for sustained growth.

For more advanced discount strategies, check out our guides on automatically adding free gifts to buyers’ carts and how to maximize sales with combo products.

When to implement and avoid tiered pricing strategies

Tiered pricing isn’t a one-size-fits-all solution. Knowing when to use it can help Shopify store owners maximize its benefits and avoid wasted effort.

Here are the types of businesses that profit from implementing a tiered pricing strategy:

• B2B businesses. Tiered pricing incentivizes bulk purchases, streamlines negotiations, and caters to diverse client needs, boosting profitability.
• SaaS companies. It aligns pricing with different usage levels and budgets, encourages upgrades, improves retention, and supports predictable revenue.
• Subscription-based products. Multiple tiers appeal to different customer segments, encourage upgrades, maximize lifetime value, and reduce churn.
• Custom products. Tiered options justify different customization levels, offer entry points for new buyers, and build engagement.
• Event-based businesses. Early-bird, standard, and VIP tiers broaden access, drive urgency, and enable premium upselling.

And these are the types of businesses that should avoid tiered pricing:

• High-end, exclusive, luxury products. Discounts can erode perceived exclusivity where price signals status and value.
• One-time purchase or low-repeat products. Implementing tiered pricing for products that people tend to purchase only once adds complexity without clear benefits. Not advisable for products when upselling isn’t possible.
• Professional services. Custom work often requires personalized quotes, not fixed pricing tiers.
• Products with short shelf life. Managing inventory across tiers becomes difficult for time-sensitive products.
• Commodities and highly competitive markets. Price-based tiers risk triggering damaging price wars.

Get started with your effective tiered pricing strategy today

If you’re ready to boost your Shopify store’s sales with tiered pricing, here’s a simple path to get started:

• Step 1: Analyze your product catalog and pick 2-3 products that would benefit most from tiered pricing.
• Step 2: Begin with a straightforward structure like “buy 5 for 5% off, buy 10 for 10% off” to test what resonates with your customers.
• Step 3: Use Barn2’s Shopify Discount Manager app for an intuitive, powerful way to set up and manage advanced tiered pricing without hassle.

Remember, tiered pricing can drive higher average order values and improve customer satisfaction. While Shopify’s native discount tools offer basic features, Barn2 gives you an easy, flexible, and customizable way to set up advanced tiered pricing discount strategies.

Start today with Barn2 Bundles & Bulk Discounts and unlock the full potential of tiered pricing in your store!