What term is used for a discount that applies specifically to larger, bulk purchases?

The term "Volume Discount" refers to a reduction in price that is applied when a customer purchases a large quantity of goods. This discount is often used as a strategy to encourage customers to buy more products at once, benefiting both the buyer, who saves money, and the seller, who increases their overall sales volume. Volume discounts are commonly employed in various industries, particularly in wholesale and retail environments, where managing inventory levels effectively is crucial.

The other terms listed have different meanings and applications in the context of discounts. A cumulative discount typically pertains to discounts that are accumulated over time or across multiple purchases rather than being applied to a single large purchase. A trade discount is a reduction given to retailers or wholesalers, rather than directly to consumers, and is often based on the business relationship or the resale nature of the item. A distributor discount is specific to distributors who purchase goods to resell them, focusing on their specific business needs rather than bulk purchases in general. Understanding these distinctions is key to applying the correct terminology in buying and merchandising contexts.