This episode challenges common assumptions about Average Order Value (AOV) and free shipping thresholds. It emphasizes that a 'good' AOV is relative to a store's product assortment and pricing, not a fixed number. Ecommerce operators will learn how to strategically set AOV targets, implement effective cross-sells and upsells, and optimize free shipping thresholds to maximize profit, not just revenue.
Key takeaways
Your free shipping threshold should always be higher than your current AOV; adjust it upwards as your AOV increases.
Implement cross-sells and upsells where the additional item is 30-40% of the original product price for higher conversion rates.
Focus on profit dollars over vanity revenue numbers when evaluating business performance, especially when adjusting shipping strategies.
Consider product bundling or 'X for Y' deals to encourage increased spending, shifting the customer's psychology from buying another item for free shipping to getting a deal.
Utilize tools like Smart Checkout Rules (e.g., on Shopify) to gain granular control over shipping methods based on cart contents, enabling more profitable fulfillment strategies.
Inside the Lounge, we’ve been knee-deep in planning convos… and one theme keeps popping up over and over again: what’s a good average order value, how to increase it, and how to leverage your free shipping threshold without losing money. What we'll cover: The general rule I recommend for raising your AOV
How to reverse-engineer your free shipping threshold based on your product prices
The real deal on why profit matters more than revenue (yep, I said it)
A cautionary tale about what happens when you don’t raise your free shipping threshold _______
Full Episode Show Notes
http://ecommercebadassery.com/361 _______
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What does this episode say about conversion & cro?
Your free shipping threshold should always be higher than your current AOV; adjust it upwards as your AOV increases.
What does this episode say about product & merchandising?
Implement cross-sells and upsells where the additional item is 30-40% of the original product price for higher conversion rates.
What does this episode say about supply chain & operations?
Focus on profit dollars over vanity revenue numbers when evaluating business performance, especially when adjusting shipping strategies.
What does this episode say about conversion & cro?
Consider product bundling or 'X for Y' deals to encourage increased spending, shifting the customer's psychology from buying another item for free shipping to getting a deal.
What does this episode say about conversion & cro?
Utilize tools like Smart Checkout Rules (e.g., on Shopify) to gain granular control over shipping methods based on cart contents, enabling more profitable fulfillment strategies.
