Why are quantity discounts required on Rivly?

At Rivly we always want shoppers to know when they buy more they save more. That happens through quantity discounts we highlight for our shoppers to encourage them to purchase more from the same seller.

We know that when shoppers buy more from the same seller, that seller gains more profit with more sales while simultaneously reducing their shipping cost per item as multiple items can be packaged together. Thus, we require some of this extra profit to be shared with shoppers in the form of a quantity discount.

Quantity discounts are a minimum of 2% off for 2 items and 3% off for 3 or more items, but most sellers offer more tiers and discounts to provide more incentive.

For sellers who are utilizing Amazon for fulfillment of their Rivly orders, it is particularly beneficial to encourage higher quantities in each order. When a seller has an order on Amazon and the seller uses fulfillment by Amazon (FBA), the seller pays a fixed rate for fulfillment of each item. Whether it's a quantity of 1, or a quantity of 10 in the order, the seller will pay Amazon the same fixed rate per unit.

However, when an order occurs on Rivly and the seller uses Amazon for fulfillment to ship, Rivly sends the order to Amazon to ship from the seller's Amazon stock. This order utilizes a program on Amazon called Multi-Channel Fulfillment (MCF) which has different pricing tiers, and the more units per order, the lower the shipping cost per unit. This tiered pricing from Amazon MCF aligns with all 3PLs where the more units combined, the lower the shipping cost per unit. 

For this reason, we use quantity discounts as one of our ways to encourage shoppers to purchase more items from the same seller.