The ultimate goal of any eCommerce businesses is to maximize their revenue and growth, and increasing their average order value (AOV) is imperative to achieve that. Although there are many options to do so, businesses should look in particular into kits and bundles as a potentially fruitful investment.
To convince you of this strategy’s viability, we’ll discuss five proven strategies on how to use kits and bundles to increase AOV. By the end of this article, you’ll be more confident in your ability to leverage this type of offering to boost the AOV for your eCommerce business.
How kits and bundles can strengthen AOV
Average order value is a critical metric for eCommerce success; it’s the average amount of money people spend on each purchase at your online store. It’s calculated by dividing your total revenue by the number of orders placed during a specific period. Increasing your AOV can lead to higher revenue and profits for your business — and kits and bundles are designed to do just that.
By grouping products together, customers can buy multiple items at once, which increases the overall amount of the purchase. Kits and bundles also provide a convenient way for shoppers to score related items in a single transaction, saving them time and effort.
Customize kits and bundles
To create enticing kits and bundles, you must understand your customers’ preferences and needs. You can gather this information by analyzing consumer data, conducting surveys, or using other market research techniques to tailor your offerings and tempt shoppers. For example, look at customers’ purchase history for ideas, or customize offerings for different consumer segments.
Tailored kits and bundles personalize the shopping experience, which increases customer satisfaction. They also encourage shoppers to purchase more items in a single transaction by displaying related, relevant products or reminding them of other things they need. Additionally, the value and convenience they provide serve to increase brand loyalty.
Offer exclusive discounts
Customers are always on the hunt for good deals, so offering discounts incentivizes them to purchase more items. Deals on kits and bundles especially can move inventory quickly, making them a smart tactic to push seasonal or slow-moving products.
You want to give a discount that's attractive enough to entice customers to buy, but not so large that it significantly cuts into your earnings. To determine an appropriate percentage, consider factors such as the cost of goods sold, the popularity of the product, and your business’s overall profit margins.
Then, you need to promote your discounts effectively so shoppers take advantage of them. Use social media advertising, email marketing campaigns, and targeted promotions on your website to spread the word. Additionally, induce a sense of urgency around the offer by putting a time limit or some other restriction on it to further incentivize customers to act.
Add extra items
Receiving more products for the same price can be the final push shoppers need to make the purchase. Further, adding extra items can introduce them to new products they may not have considered before.
Rather than throwing in random objects though, consider which products will provide the most value to your customers. Some strategic additions include complementary items that pair well with the main product, new releases you want to promote, or items with high profit margins. It's also important to review the overall cost of the extra items so they don't eat into your profit margins.
To introduce new products in kits or bundles effectively, offer a discount or provide additional information about the item's features and benefits. This is also a rich opportunity to gather customer feedback on the new release to improve it and make it more appealing to future shoppers.
Run limited-time offers and promotions
Time limits invoke a sense of urgency in customers, encouraging them to make a purchase before the deal expires. Additionally, they help move inventory quickly, especially seasonal and slow-moving products.
You can run a variety of limited-time promotions for your kits and bundles, such as:
Analyze your profit margins and the popularity of the product before launching limited-time deals.
Leverage multiple marketing channels to maximize the visibility of your offers, like social media advertising, email marketing campaigns, and targeted promotions on your website. Clearly communicate the terms and conditions of the promotion as well, including the expiration date and any exclusions, to avoid misunderstandings and returns.
Employ upselling and cross-selling techniques
Upselling and cross-selling are common eCommerce tactics that encourage customers to purchase additional products along with their kit or bundle. With upselling, you offer a higher-priced upgrade or improved version of the original product, while cross-selling pushes complementary or related items.
To apply these techniques to kits and bundles, consider which products complement or enhance the original product. For example, if you sell a camera kit, you might offer a higher-priced camera model as an upsell. Alternatively, you could cross-sell accessories such as a camera bag or tripod. It's important to offer items that provide value to the customer and are relevant to the original product.
Upselling and cross-selling provide several benefits to eCommerce businesses, including:
Wrapping up — Boost your AOV with smart product combos
Introducing kits and bundles into your eCommerce business is a powerful strategy to increase your AOV and secure more sales. Their implied savings and tailored offerings are highly attractive to shoppers, making them a solid investment for your business.
By incorporating the strategies outlined in this article, you’ll provide noteworthy value to your customers and encourage them to make larger purchases. Analyze the needs and preferences of your buyers and widely promote your kits and bundles across your various channels for the greatest efficacy — and an impressive AOV.
About The Author
Co-Founder / CEO
Tom is an entrepreneur, startup advisor, and management consultant with over 20 years of senior management experience. He is the Co-Founder and CEO of MyFBAPrep, the largest worldwide 3PL ecommerce warehouse network. He managed the digital assets of local media companies across Europe as part of a $2 billion private equity investment led by Macquarie Bank. At the beginning of the Amazon FBA Marketplace, Tom built a data automation platform used to programmatically generate, manage and optimize over 1 million product listings on Amazon. He is a Boston sports fanatic and a recovering hot sauce junkie. Tom speaks Spanish and German and lives in Florida with his wife and three children.