What is Volume Discount in Retail? Explained

A volume discount in the retail sector is a pricing strategy where customers receive a reduced price per unit when purchasing goods or services in large quantities. This incentive is designed to encourage bulk buying and is commonly used in both business-to-business (B2B) and business-to-consumer (B2C) transactions. Retailers offer volume discounts as a way to reward customers for higher purchase volumes, fostering customer loyalty and increasing the overall value of the transaction. This strategy benefits both the customer, who enjoys cost savings, and the retailer, who can potentially boost sales and move inventory more efficiently.