How Multi-Tier Pricing can benefit Customers as well as Vendors

by Admin

All ecommerce website visitors are same, but some visitors benefit more from than others from an eCommerce platform. Having Multi-tiered membership levels, pricing for each membership level and multi-tier pricing for bulk purchases on the eCommerce platform can be beneficial to both Customers as well as the eCommerce business owners or eCommerce Vendors. Giving exclusivity and offering discounts will encourage the Visitors to buy more, thus boosting sales and revenue to the eCommerce business owners and Vendors. . Let us study how.

 Loyalty Programs

Loyalty programs has always been one of the popular strategies in traditional marketing. However, this has been forgotten by most of the stores, while moving from physical to online. A multi-tier e-commerce solution will give you a provision to assign membership levels. Offering products for lesser prices and offering discounts and offers for different membership levels can be beneficial for business owners, Vendors as well as Customers. The consumer gets good deals, and the vendor achieves that Customers' long term loyalty.

Loyalty programs can add a value of 20 percent to the market share, up to 10 percent to the customer acquisition. 69% of consumers say that they choose a Vendor, based on the potential they have for earning loyalty points. With such a scope for acquiring Customers based on loyalty programs, eCommerce platforms can definitely start multi-tier membership levels, based on the loyalty points earned.

 Member Levels and exclusive incentives

We are all familiar with Amazon Prime. In Amazon, Customers, who purchase the  Prime membership are offered the privilege of getting free two day shipping for a yearly membership fee. Also, when Prime members are checking out, they see a little different interface when shipping costs are shown.  Attractive deals like Prime Membership can boost sales in your eCommerce platform, bringing more revenue, both from prime membership as well as more purchases from Customers. 

A Tip

If you want to increase the membership numbers, you can show exclusive member price next to the price that non-members pay.  This works very well for whole sale and retail purchasers. A multi-tier online store platform can achieve  a range of goals, see increased revenue as well as increased membership.

 Multi-tier quantity purchase and advanced pricing method

This is a more simpler options that you can have on your eCommerce platform. If your eCommerce platform caters to B2B model and your target audience are only Manufacturers and Retailers, who do bulk purchases, then, you can have Multi-tiers for different purchase quantities and then map the pricing per product for each tier. For example, if a Customer purchases 500 and above quantity, then, the price per item will be $10. Whereas, a Customer purchases 800 and above quantity, the price per item will be $8.

This kind of setting multiple tiers for each bulk purchases based on quantity and setting different pricing for each tier encourages Wholesalers and Retailers to buy more from your eCommerce platform and also gain satisfaction for having got a good deal.

In Spurtcommerce V.4.2, we have introduced this feature of Multi-tier pricing that can be set from the Admin Control Panel. For more details on how this feature works, refer to this video.