Canonical URL: https://chargezen.com/docs/checkoutos/discount-functions/tiered

# Tiered Pricing

Spend more, save more discount structures

Last updated: 2025-01-16

**Tiered pricing** rewards customers for spending more with increasingly better discounts. This proven strategy increases average order value while creating clear incentives for customers to add more to their cart.

##### AOV Booster

Tiered discounts are one of the most effective tactics for increasing AOV. Customers frequently add items just to reach the next discount tier.

## Tier Types

### Spend-Based Tiers

Discounts based on cart value:

Spend-Based Tiers

```json
{
  "tiered_discount": {
    "name": "Spend More Save More",
    "tier_type": "cart_value",
    "currency": "USD",
    "tiers": [
      {
        "threshold": 50,
        "discount_type": "percentage",
        "discount_value": 10,
        "label": "Spend $50+, Save 10%"
      },
      {
        "threshold": 100,
        "discount_type": "percentage",
        "discount_value": 15,
        "label": "Spend $100+, Save 15%"
      },
      {
        "threshold": 200,
        "discount_type": "percentage",
        "discount_value": 20,
        "label": "Spend $200+, Save 20%"
      }
    ]
  }
}
```

### Quantity-Based Tiers

Discounts based on number of items:

Quantity-Based Tiers

```json
{
  "tiered_discount": {
    "name": "Buy More Save More",
    "tier_type": "quantity",
    "scope": "cart",
    "tiers": [
      {
        "threshold": 2,
        "discount_type": "percentage",
        "discount_value": 10,
        "label": "Buy 2+, Save 10%"
      },
      {
        "threshold": 4,
        "discount_type": "percentage",
        "discount_value": 15,
        "label": "Buy 4+, Save 15%"
      },
      {
        "threshold": 6,
        "discount_type": "percentage",
        "discount_value": 20,
        "label": "Buy 6+, Save 20%"
      }
    ]
  }
}
```

### Product-Specific Tiers

Tiered pricing on specific products or collections:

Product-Specific Tiers

```json
{
  "tiered_discount": {
    "name": "T-Shirt Volume Discount",
    "tier_type": "quantity",
    "scope": {
      "type": "collection",
      "collection": "t-shirts"
    },
    "tiers": [
      { "threshold": 3, "discount_value": 15 },
      { "threshold": 5, "discount_value": 20 },
      { "threshold": 10, "discount_value": 25 }
    ],
    "apply_to": "qualifying_products_only"
  }
}
```

## Discount Value Types

#### Discount Options

*   Percentage off — Most common, scales with cart
*   Fixed amount off — Dollar amount discount
*   Fixed unit price — Set price per item at tier
*   Free shipping — Tier unlocks free shipping

Mixed Discount Types

```json
{
  "tiers": [
    {
      "threshold": 50,
      "discount_type": "percentage",
      "discount_value": 10
    },
    {
      "threshold": 100,
      "discount_type": "percentage",
      "discount_value": 15,
      "bonus": { "type": "free_shipping" }
    },
    {
      "threshold": 200,
      "discount_type": "percentage",
      "discount_value": 20,
      "bonus": { "type": "free_gift", "product": "sample-set" }
    }
  ]
}
```

## Progress Display

Show customers their progress toward the next tier:

Progress Display

```json
{
  "display": {
    "show_progress_bar": true,
    "show_current_tier": true,
    "show_next_tier": true,
    "messages": {
      "below_first_tier": "Spend ${{remaining}} to save 10%",
      "at_tier": "You're saving {{discount}}%!",
      "next_tier": "Add ${{remaining}} more to save {{next_discount}}%",
      "max_tier": "You've unlocked maximum savings!"
    },
    "display_locations": ["cart", "mini_cart", "checkout"]
  }
}
```

##### Show the Path

Progress indicators showing distance to next tier are extremely effective. Customers will often add a $5 item to save $20.

## Wholesale/B2B Tiers

Create aggressive tiers for wholesale customers:

Wholesale Tiers

```json
{
  "tiered_discount": {
    "name": "Wholesale Pricing",
    "conditions": {
      "customer_tag": "wholesale"
    },
    "tier_type": "quantity",
    "tiers": [
      { "threshold": 12, "discount_value": 30 },
      { "threshold": 24, "discount_value": 35 },
      { "threshold": 48, "discount_value": 40 },
      { "threshold": 96, "discount_value": 45 }
    ],
    "display": {
      "show_unit_price": true,
      "show_bulk_savings": true
    }
  }
}
```

## Tier Stacking

Control how tiered discounts interact with other offers:

Stacking Rules

```json
{
  "stacking": {
    "with_discount_codes": false,
    "with_automatic_discounts": false,
    "with_sale_prices": true,
    "with_subscriptions": true,
    "priority": 1
  }
}
```

## Margin Protection

Margin Safeguards

```json
{
  "margin_protection": {
    "enabled": true,
    "minimum_margin": 0.20,
    "excluded_products": {
      "tags": ["low-margin", "already-discounted"]
    },
    "cap_at_tier": {
      "enabled": true,
      "max_discount": 25
    }
  }
}
```

## Tier Analytics

Track tiered discount performance:

*   Tier distribution — Which tiers customers reach
*   Upgrade rate — How many move to higher tiers
*   AOV by tier — Average order value at each level
*   Margin impact — Profitability analysis

## Best Practices

##### Tier Strategy

*   **3-4 tiers maximum** — Too many creates confusion
*   **Meaningful jumps** — 5% increments feel insignificant
*   **Achievable first tier** — Many should reach it
*   **Stretch last tier** — Aspirational for most
*   **Show progress constantly** — Drive tier upgrades

## Related Topics

[

### Automatic Discounts

Auto-applied discount setup

Learn more



](https://chargezen.com/docs/checkoutos/discount-functions/automatic)[

### BOGO Offers

Buy X get Y promotions

Learn more



](https://chargezen.com/docs/checkoutos/discount-functions/bogo)

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