If you’re looking to start or increase your ecommerce business, then you’ll want to know about the various pricing tiers that are available on Shopify. In this article, we’ll explain the different pricing tiers and what they mean for your business.
What are product pricing tiers?
When you create a product on Shopify, you have the option to set up three pricing tiers: a free tier, a paid tier, and an enterprise tier. Product pricing tiers are important because they determine how much money you make from each sale.
Here’s what happens when someone clicks on your product in the Shopify store:
For the free tier, the visitor is viewing your product without any commitment. If they decide to buy it, they will be charged the free tier price. For the paid tier, the visitor is viewing your product and has agreed to pay you for it. If they decide to buy it, they will be charged the paid tier price. The enterprise tier is for customers who need extra features or support beyond what’s offered in the paid and free tiers.
What’s the benefit of using product pricing tiers?
There are a few reasons why you might want to use product pricing tiers in your shopify store.
First, product pricing tiers can help you price your products more logically. You can create different price points for different types of customers, which makes it easier for them to find the right product at the right price.
Second, using product pricing tiers can help you manage stock better. If you have different price points for different types of products, you can be sure that your inventory will always be balanced. This will spare you the hassle and expense of running out of stock, and it will also keep your prices fair for both customers who buy in bulk and those who buy single items.
Finally, using product pricing tiers can give your store a sense of exclusivity. By setting different prices for different types of customers, you can create a sense of community within your shop. This can encourage buyers to spend more time browsing through your products, and it can also help to attract new customers who are looking for an exclusive experience.
How do product pricing tiers work?
Shopify pricing tiers work by setting a price for a product and then offering different pricing tiers to customers. The different pricing tiers offer different discounts, depending on how many products the customer purchases from that specific tier. This allows merchants to offer different prices to customers based on how much they are buying.
Each product will have its own price, which is set by the merchant. There are three types of pricing tiers in Shopify: Fixed Price, Discounted Price, and Freight.
Fixed Price Pricing Tier: A Fixed Price Pricing tier is the most expensive type of pricing tier and it offers no discounts or bonuses. The price for a product in this tier is set at the time of purchase and cannot be changed.
Discounted Price Pricing Tier: A Discounted Price Pricing tier offers a discount off the Fixed Price, depending on how many products the customer purchases from that specific tier. The discounts offered vary depending on the number of products purchased from that specific tier. For example, a merchant might offer 10% off for every third product purchased from a Discounted Price Pricing tier.
What are the benefits of using product pricing tiers?
One of the simplest ways to price your products is to use product pricing tiers. This allows you to set different prices for different types of customers. Doing so can help you make more money and attract more customers. Here are three reasons why you should consider using product pricing tiers:
1. It Can Help You Charge Different Prices For Different Types of Customers
If you have a lot of different types of customers, using product pricing tiers can help you charge them different prices. You can set different prices for monthly subscribers, yearly subscribers, personal users, and business users. This way, you can ensure that everyone who wants your product pays a fair price.
2. It Can Help You Keep More Money
When you set different prices for different types of customers, it can increase your sales. People who need your product the most usually have the deepest pockets. By charging them more, you can generate more revenue from them and keep more money for yourself.
3. It Can Help You Attract More Customers
When you set different prices for different types of customers, it can attract more customers to your product. People who need your product the most are usually the ones who are the most likely to buy it. By offering them a higher price, you can convince them to buy your product instead of another one.
How to set up product pricing tiers in Shopify
If you sell physical products on Shopify, you likely want to set up pricing tiers so that you can charge different customers different amounts for the same product. Pricing tiers are a great way to do this, and they’re also a great way to manage your inventory. Here’s how they work:
When a customer orders a product from your shop, your Shopify admin will set up a price for that product in accordance with the customer’s chosen pricing tier. If the customer is in one of your pricing tiers, then they’ll be charged the price that corresponds to that tier. If the customer is not in one of your pricing tiers, then they’ll be charged the default price for that product.
Below are some tips on setting up pricing tiers in Shopify:
1) Choose Your Pricing Tiers wisely
You’ll want to choose which pricing tiers to create carefully. The more tiers you have, the more granular your control over pricing becomes, but it also means that you’ll have more products available at each price point. Make sure that each tier offers something different and valuable to your customers. You don’t want them to feel like they’re being forced into a certain price point just because they bought something from you.
2) Set Up a Default Price for Non-Tiers
If a customer isn’t in one of your pricing tiers, then you’ll want to set up a default price for them. This will ensure that they’re not charged more than necessary for the product. You can set the default price using Shopify’s Settings > Product Options.
3) Keep Your Tiers Simple
Don’t make your pricing tiers too complicated or confusing. If a customer doesn’t know how to use them, they’ll likely give up on using them altogether. Stick to simple, easy-to-understand tiers that reflect the products and services that you offer.
4) Use Custom Fields to Control Pricing
You can use custom fields to control pricing in your shop. This gives you even more control over how each product is priced, and it also makes it easier for you to keep track of pricing changes over time. To add a custom field to a product page, go to Shopify’s Settings > Products > Click on the product that you want to modify, and then click on the “Custom Fields” tab at the top of the page.
Conclusion
When you create a product in Shopify, you have the option to set different pricing tiers for different types of customers. This can be incredibly helpful if you want to offer different prices to subscribers, or if you want to sell your products at different price points on your website. If you’re not sure how pricing tiers work in Shopify, read our article on how they work and try setting up a few different tiers for yourself!
