2️⃣ PRICING TECHNIQUES TO RAISE AOV – IMMEDIATELY.
1️⃣: If your hero SKU (the product you sell the most units of) is $44, then your free shipping threshold need not be $25. And, it better not be $100. It needs to be something that pushes your AOV up, but that is actually able to be unlocked.
For example, if your best selling unit is $44. And, your second most ordered item that people also buy with that $44 item is $22, then try your free shipping threshold at ~$70. That means you’re learning from existing data (that shows people are often hitting $66)… and then you’re pushing that existing behavior up by just a little. Maybe they’ll add another $44 item. Maybe they’ll add a $10 item. No matter what… many will feel the need to add something because nobody likes to pay shipping.
2️⃣: Back to the example above. We want orders to come in at over $70. So, there need to be PRE-BUILT bundles on site that are at or above the $70 range. So that a customer can just buy that single bundle and be on their way with free shipping. BUT ALSO…. I’d create several bundles that are at the $35 and $38 range… so that someone could get 2 bundles and hit our threshold (or pass it).
Sometimes, $70 is scary. $38+ $35 is less scary (even though it’s the same thing but actually more expensive).
