What is tiered pricing?

Tiered pricing is a pricing structure where the price changes according to predefined quantity, spending, customer, or usage levels. It is widely used in B2B eCommerce to provide different prices for different purchasing volumes or customer segments.

A common quantity-based structure might be:

• 1–99 units: ₹500 per unit
• 100–499 units: ₹475 per unit
• 500+ units: ₹450 per unit

Tiered pricing can be based on:

• Order quantity: Larger quantities receive lower unit prices.
• Order value: Discounts apply after reaching specified spending levels.
• Customer groups: Different businesses may have different pricing tiers.
• Contract levels: Pricing can depend on an agreed purchasing commitment.
• Usage: Some services charge different rates based on usage levels.

Example: A manufacturer may offer lower per-unit prices to wholesalers purchasing 1,000 units than to customers purchasing 50 units.

Tiered pricing helps businesses structure volume discounts, support customer-specific pricing, and encourage larger purchases. In a B2B eCommerce system, the applicable tier can be displayed or automatically applied based on the customer’s account, quantity, or other configured rules.