What is a characteristic of quantity discounts?

Quantity discounts are pricing strategies used by sellers to encourage larger purchases by offering reduced prices based on the amount bought. The key characteristic of quantity discounts is that as the purchase amount increases, customers are rewarded with greater discounts. This approach incentivizes bulk buying, benefiting sellers by increasing sales volume while making customers feel they are receiving a better deal.

The concept relies on the principle that higher order quantities can lead to economies of scale for the seller, allowing them to pass some of those savings on to the buyer. This creates a win-win situation for both parties, as customers save on their costs while sellers can increase their market share.

The other statements lack accuracy in context. Discounts are not confined to seasonal purchases, nor are they fixed regardless of volume—they are specifically designed to vary based on the quantity ordered. Additionally, the availability of these discounts is not restricted to new customers; existing customers can also take advantage of such offers depending on the purchasing criteria established by the seller.