In today’s competitive e-commerce landscape, increasing your Shopify store’s revenue requires more than just driving traffic. One of the most effective strategies to boost sales without increasing your marketing spend is by raising your store’s average order value (AOV). A simple yet highly effective way to do this is by using product bundles.
In this article, we’ll explore what product bundles are, why they work so well for increasing AOV, and how you can easily implement them in your Shopify store.
What is Average Order Value (AOV)?
Before diving into product bundles, it’s essential to understand what AOV means. AOV refers to the average dollar amount spent each time a customer places an order on your website. It is a key performance metric for any online store because increasing your AOV allows you to earn more revenue from your existing traffic. To calculate your AOV, use this simple formula:
The higher the AOV, the more money each customer is spending per transaction, leading to increased profitability.
Why Product Bundles Increase AOV?
Product bundling is the practice of grouping complementary products together and offering them at a discount. This strategy works well for several reasons:
- Encourages Larger Purchases: When customers see a deal on bundled items, they are more likely to buy multiple products at once instead of purchasing a single item. This drives up the total amount they spend in a single transaction.
- Perceived Value: Bundles make customers feel like they are getting more for their money. By offering a discount on the total price of the bundled items, shoppers feel they’re receiving a better deal than if they were to purchase the items separately.
- Faster Decision Making: Bundles reduce decision fatigue by simplifying the shopping process. Instead of making individual decisions on each product, customers can grab a pre-curated bundle, which can also help cross-sell products.
- Move Inventory Faster: Bundling products can help you sell slow-moving or overstocked items faster by pairing them with more popular products.
Types of Product Bundles That Can Boost AOV
There are several types of bundles that you can offer to maximize your AOV. Here are a few effective options:
Value Discount Bundles
This type of bundle offers a discount when customers buy multiple products together. For example, if you sell skincare products, you could create a bundle that includes a cleanser, moisturizer, and sunscreen with a 15% discount when bought together.
This works particularly well for complementary products that customers often use in combination.
Buy X, Get Y (BOGO) Bundles
With this bundle, customers receive one product for free (or at a discount) when they purchase another product. For instance, “Buy two shirts, get one free” or “Buy a pair of shoes, get 50% off socks.”
This strategy encourages customers to purchase more than one item, thus increasing the overall value of their cart.
Free Shipping Bundles
Free shipping is a major motivator for online shoppers. You can create a bundle where customers qualify for free shipping if they purchase specific products.
For example, “Buy our skincare set and get free shipping on your entire order.” This encourages customers to add more to their cart to avoid shipping fees, effectively increasing your AOV.
Read more on how you can get the most out of WISS Bundle in our article – Best Practices for Using the WISS Bundle App.
Conclusion
Product bundling is a highly effective strategy to increase your Shopify store’s average order value. By offering value-based bundles, BOGO deals, or free shipping incentives, you can encourage customers to purchase more products in a single transaction, ultimately driving up your AOV and growing your revenue.
Implementing product bundles doesn’t require any technical skills, especially with the help of apps like WISS Bundle. Start creating bundles today and watch your AOV grow!
