Rito Entrepreneur, YouTuber, Digital Marketer. Founder of Flying Start Online. Dream big, make it happen, and just do what needs to be done!

2 Ways To Instantly Increase Average Order Value With Tiered Pricing – (Day 21/30) #Bizathon3

2 min read

Shopify Tiered Pricing

We build businesses from Scratch every 30 days – The Bizathon Challenge!

If you haven’t started with Shopify, you’ll want to by clicking here.

Because this month we’re building a profitable Shopify store from the ground up!

Yesterday we revealed 3 Pricing Strategies All Shopify Store Owners Need.

Today we cover how to “Increase Order Value” with tiered pricing.

Follow along as Rito uses tiered pricing to increase Shopify order value:

Aside from great copy, Tiered Pricing is the most effective way to sell your products. 

With Tiered Pricing you’re giving your customers a selection of various yeses.

Instead of presenting customers with a single option and putting them into a buy or don’t buy situation, you allow them to select the purchase plan that best resonates with them.

Let your customers choose plan or product package that best aligns with what they value.

Sure, a majority of your customers might purchase your lower price point, but a smaller group will purchase your higher priced plans, increasing overall revenue, without an increase in customers.

Increase Average Order Value Doodle

Tiered Pricing To Increase Order Value

Average Order Value or AOV for short is the average purchase price for customers. If you have 50 customers with an AOV of $20 you’d make about $1000. 

With tiered pricing implemented on your Shopify store, you can easily increase the average order value of those 50 customers by $10 bring the AOV to $30 which would net you roughly $1500

Simple enough concept, right?

Simple or not, Tiered Pricing is an incredibly powerful e-commerce tactic, and also incredibly overlooked. 

Here’s how to increase average order value of your Shopify store products…

Shopify Tiered Pricing Doodle

Offer Bulk Buyers Discounts

This is a huge purchase incentive and the easiest way to increase shopping cart value. When you offer customers who are purchasing multiple products from you an additional discount, a couple things happen. 

The first is they feel so grateful for your kind gesture that they subconsciously wish to give back to you by purchasing more.

The second thing that happens is they simultaneously feel like they’re getting over on you with that great deal you just gave them and the fear of missing out sets in, resulting in a more full (digital) shopping cart. 

Here’s how Ritoban has the bulk purchase discount pricing set up on CommonPanda:

  • Purchase 2 of the same product -> 10% off
  • Purchase 4 of the same product -> 15% off
  • Purchase 6 of the same product -> 20% off

So without increase our ad-spend or traffic you’re offering powerful incentive to increase the order value for anybody shopping at your Shopify store.

Install Quantity Discount & Tiered Pricing App

With Quantity Discount App from Shopify, it is much easier and more profitable to sell more to one customer but with a little discount than to attract another customer. 

Offer to your customers tiered pricing that motivates them to buy more. Set up different discounts for different quantities of products a customer buys. At the checkout a customer will see the total price with a discount.

It’s pretty simple to use once it’s installed:

  • Login to your Shopify Store and click “Apps” from the left sidebar.
  • Locate and select “Quanity Discount”
  • Once the app open, click the “Setup” link.
  • Now follow the 4 prompts to set up the rest of the app the way you want it to appear.
  • Done!

To reveal the average order value for your Shopify Store, login to your Shopify Store, click “Analytics” on the left sidebar, and select “Dashboards.”

Average Order Value will be the 5th box displayed. 

That’s it for Day 21 – Well done!

Questions, comments or just want to say hi? We love hearing from you below.

Success by choice, not by chance,

-David Aston


If you’re not kept in the loop via our #Bizathon list be sure to sign up today.

P.P.S. Click here for Day 22!

Rito Entrepreneur, YouTuber, Digital Marketer. Founder of Flying Start Online. Dream big, make it happen, and just do what needs to be done!

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