Rebates (also known as volume discounts/bonus discounts) are financial incentives or advantages given by a manufacturer/supplier, in order to motivate the customers or the group of individuals to purchase in bulk. The supplier rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume discounts allow businesses to purchase additional inventory at reduced cost and allow suppliers, to reduce inventories by selling more units to bulk buyers who are incentivized by the lower price.
Source KPMG
