Aug 28 (edited) • General discussion
Increasing AOV in Shopify
As a Shopify brand we are always looking at how we can encourage shoppers to buy more today. Here is a strategy you can test, it's called Order Value Gifting.
A simple but effective concept. Here is how to do it:
- Find a high-margin product (low-cost physical good, or digital assets) that customers love.
- Calculate how much additional revenue it would take to cover the cost of giving this item away. For example, if your business runs 33% gross margins. Then it takes a $30 lift in order value to justify giving away an item that costs $10.
- Look at your average order value. Let's say it is currently $100. Then all you need to do is set your gift threshold at $150 to ensure you cover costs and enter a profitable margin.
Bonus - Pair this concept with product bundling to encourage people to buy bundles at a 25%-50% price above the gift amount. It helps customers spend more by thinking less and feel good when they get savings + a gift upon purchase.
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Increasing AOV in Shopify
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