Optimized Ecommerce EP 069 – How to Boost Your Store’s Average Order Value
Today on The Optimized Ecommerce Podcast, our returning guest from the BGS team—Casey Brown— joins Tanner Larsson. They talk about an important aspect of your ecom store: boosting your Average Order Value. Join us in today’s episode as Casey discusses tactical ways to boost your store’s Average Order Value and increase your revenue.
Welcome to Episode 069 of Optimized Ecommerce – How to Boost Your Store’s Average Order Value. I’m your host, Tanner Larsson, CEO of BGS.
BGS means Build Grow Scale! It is a community that we founded where eCommerce entrepreneurs and physical product sellers come to learn how to take their businesses to the next level.
Casey Brown is one of the Revenue Optimization Experts at BGS who work with Amplified Stores and Revenue Accelerator Program (RAP) clients. RAP is a done for you incubator style service for clients that are not quite ready for the amplified program. To learn more about this program, please visit BuildGrowScale.
Here’s just a taste of what we talked about today:
Casey talked about why people should care about their store’s AOV.
One of the reasons why people should care about AOV is because ad costs are going through the roof! especially with iOS and all the privacy updates, which will come to Android soon enough. With ad costs higher, ecom stores have to increase their order value to get more money out of their sales.
Also, with ecom stores, not all revenue is created equally. When you boost your order value through certain ways, the extra revenue can be at a much higher profit than other revenue from selling your flagship product.
And then, Casey explained what an order bump is and showed an example.
An order bump is an add-on or an additional product on the checkout page. This is usually seen near the Add to Cart button. It is a box that usually says “Check This Box to Add Gift Wrapping” or “Check this Box to Add an Extended Warranty”.
An example in the jewelry niche, they have a main product showing on the page and might have options to add different chains for it. It might show that you can add a modern chain bracelet or a minimal flat cuff — for example.
Types of Order Bumps:
- Complimentary Product
- Gift Wrap
- Warranty/ Insurance
- Priority Processing
We also discussed a few other fun topics, including:
- How to build product bundles and still receive the bundle discount.
- Ways to do subscriptions and get monthly recurring revenue without consumables.
- Examples of free shipping calculators, one click upsells through funnels and cross sells.
But you’ll have to watch or listen to the episode to hear about those!
How To Stay Connected With Casey Brown
Want to stay connected with Casey? Please check out their social profiles below.
Also, Casey mentioned the following items on the show. You can find that on:
Tanner Larsson 0:07
What’s up everybody, Tanner Larsson here and welcome back to the Optimized Ecommerce podcast. Super excited to be here with you guys today, we’ve got a returning guest from the BGS team here with us today, Casey Brown. So Casey again, as you guys know, you’ve probably heard, he’s been with us for a long time almost since we started. One of the OG’s in the world of revenue optimization, works in our Amp stores also works in our RAP clients, and actually helped pioneer the RAP Program, which is called the Revenue Accelerator Program, which is a done for you one off service that we provide, if you’re interested in that, you can go to Build Grow Scale website, and you will be talking to Casey if you want to learn about that. But anyway, one of the things that Casey is really good at in stores is boosting average order value. And that’s obviously a super important thing in any store. But even more so important in this new advertising environment that we’re in with iOS 14, potentially iOS 15. And all this stuff, you need more money, to be able to acquire customers. Your cpms, your ad costs, your click rates, everything has gone through the roof. So the higher your average order value is, the easier it is for you to sustain and withstand the market conditions that we’re in right now. Also, with average order value, he can afford to pay the most to acquire the customer win, that’s where average order value comes in, that came from Dan Kennedy and Jay Abraham says it and practically anybody who’s anybody in terms of business believes that and realizes that that’s the key to scaling. And it’s literally, Casey’s been working with one of our clients for just almost four years now. And that brand has done 10s and 10s of millions of dollars a year, and it continues to grow. And it does great. But one of the things that really allowed them to start moving was boosting that AOV. And he’s going to be talking about that a little bit here and why it’s enabled that store to grow and some other stores to grow as well. So with that said, I’m gonna go and bring Casey on, guys, if you’re listening to this on iTunes, or Spotify, or whatever, that’s great. This one, we’re actually going to have some slides, Casey is going to be sharing some examples on the screen here. So make sure you’re also over on our YouTube channel or after you listen to it, hop over to the YouTube channel. So you can see the video aspect of this podcast. And if you need the links for that, just go to BuiuldGrowScale.com/podcast, and you’ll see a link to the YouTube version of the podcast and show notes, and the video actually is embedded on that page as well. So with that, Casey, thanks for coming back, bro.
Casey Brown 2:38
Oh, yeah, it’s always a pleasure. I love to chat with you. And talk about the latest stuff in the industry geek out a little bit.
Tanner Larsson 2:46
Yep. Now, guys, Casey is a true e-commerce geek like the same way I get excited and love talking about ecom all day long. Casey’s the same way he could talk about it all day, talk your ear off till it falls off about all the different cool things in e-commerce. But he’s also very passionate. And he’s owned his own stores, run his own brands, he’s done his own inventory, his own private labeling, everything. So we’ve got a really well rounded grasp of this. But with that said, Casey, let’s go ahead and dive in. Why don’t we start with why people care about AOV why they should care about it?
Casey Brown 3:21
Yeah, you kind of touched on this a lot. You mentioned a lot of things about ad costs are just going through the roof, especially with iOS and all these privacy updates, something similar is probably going to come to Android and with the ad costs being higher, you’re gonna have to be able to increase the order value to just basically get more money out of the sale. It’s also one of just the three ways that you can make money from customers and running e-commerce or any type of business and I forget who is maybe you can point out who’s the original person to say this but it’s increased the number of orders that you get that’s an obvious one, increase the order frequency how often your customers repeat buy from you and increase the order value how much your customers spend with you, is there any other way that you can make money from the customers?
Tanner Larsson 4:10
Those are the three ways and I don’t know exactly who said it first but I think one of the most famous people for saying it would be Jay Abraham or Kennedy.
Casey Brown 4:18
Yeah might have been Ziggler, but yes some of the famous gurus said that. We’re talking about one of these not talking about increasing the amount of orders or order frequency that we have other podcasts about that. This one’s going to laser focus on the third one, which is increasing the value of those orders. And like he talked about and I just repeated now traffic is crazy expensive these days. And let’s say even despite all the super high traffic costs, or whatever you’re already doing okay. You’re profitable even with a low order value. You’re still leaving a lot of money on the table. Why wouldn’t you make more money who doesn’t want to make more money? By the way, if you don’t want to make more money, you’re on the wrong podcast which will be talking about right now, this is not for you, we’re not for everybody. And then also, this is another thing to talk about, you know how I’ve been a store owner and stuff like that. One thing that you’ve noticed that I noticed with anybody who runs a store, notice is that not all revenue is created equal, it’s what is your profit margin on that particular revenue. So we talked about, we do revenue optimization, I don’t really even care about your conversion rate, it’s your net profit, that at the end of the day, I don’t care about your bounce rate or necessarily your page speed. If I could have you a slow site with a high bounce rate that somehow made you more net profit, I would do it.
Tanner Larsson 5:47
Yup, that’s why it’s revenue optimization, not conversion rate optimization, or whatever else, we optimize what you keep in your pocket.
Casey Brown 5:53
Exactly. So I’m going to get into more of this later. But I’ll just touch on this, for now, by saying that not all revenue is created equal. And when you boost your order value through certain ways, the extra revenue can be at a much higher profit than other revenue from selling your flagship product. I’m being a little vague on that. But don’t worry, I’m going to dive deeper and clarify that. more as we go through. So now I guess we’ll just, if it’s okay with you, we’ll get into some ways on how to do it.
Tanner Larsson 6:29
No, let’s talk about how what is the tactical ways everybody loves the tactic stuff.
Casey Brown 6:33
Yeah. So I’ll share my screen, I’ll kind of go intermittent, maybe just, share it and turn it off, so you can see our faces again and whatnot.
Tanner Larsson 6:39
And, guys, we’ll make sure we’re explaining it, for those of you on audio don’t sign off, you’ll be sure you’re gonna get value out of this, even if you can’t see it, we’ll explain it so you know what we’re talking about. But if you actually want to see the real examples that he’s sharing and whatnot, make sure you hop over to the YouTube channel to see that.
Casey Brown 6:53
Yeah, absolutely. I’ll try to explain this clearly for you guys who are listening on audio. Anyway, so an order bump. So first, define what an order bump is, an order bump is like an add-on or an additional product so if you’re looking at a standard e-commerce page, usually, it’s put near the Add to Cart button. And it’s something like a box you can check, it says, check this box to add gift wrapping or check this box to add an extended warranty. So for the people who are watching this on YouTube right now you can see an example, this is in the jewelry niche and they have their main product and they have an addition to add on different chains for it. So you can add a modern chain bracelet minimal flat cuff and utility route and they have a little Add button below there. So that is what an order bump is you can see it and like I said people on audio can see this later but I think even the people on audio you know what it is you’re looking at an e-commerce page I’d say there’s a watch and then there’s an Add to Cart button and below the Add to Cart button or above it just says check this box to add the leather band with it or check this box to add the gold band with the watch you’re already getting. Because some people like to change the watchband. So what can you put here as your order bumps? The main flagship product, like the product page that the customers are already on, you want your order bump to be complimentary to that, and typically if you can help it does not require a lot of great explanation. So if somebody is already buying a watch that has a metal band or a metal chain, whatever you call it, and they’re just getting the leather one, or if they’re getting the flashlight, click here to check this box to add an extra set of rechargeable batteries. You probably don’t need a lot of explanation on that it’s not going to detract it’s not like well, let me investigate this, let me think about this. It’s kind of like do you want fries with that? No one needs an explanation of what french fries are. So that would be an example of adding a complimentary product again, kind of like a no-brainer add-on something that works with that, it doesn’t require a lot of explanation.
Tanner Larsson 9:16
Or thought on the buyers part right? it’s something they don’t have to consider or see from 20 different angles before they’re ready to buy it. Not a good fit.
Casey Brown 9:24
Yeah, I will say one thing when we look ahead here. I’m just going to try to explain this as best I can. But let’s just say it did require a little bit of explanation. What you can do is it can say check this box to add a blank widget for 14.95 normally 19.95. And then, this widget will be like a blue link and they can click it and get like a little pop-up and maybe scroll through some images and read a short description on it. That can work. We’ve seen that work pretty well, too. But try not to get too far off explain like something totally new just to kind of like, oh, their add on the extra, what is this thing? And it’s clear they can click it, they’re still on the same page, it’s a little pop-up, they haven’t navigated away from the page. It’s just a few quick images, they can slide through a little bit of short copy, but don’t confuse them, don’t attract, don’t bring in something new there. But that can be the one little maybe exception of if you have to explain something. For certain niches, they’re maybe like well, my store doesn’t have a no-brainer out on it. You need a little demonstration, okay, now I’m giving you this option if you must. Another one is gift wrapping. Amazon does this, a lot of e-commerce sites do this, you can charge more to gift wrap it. Another one is warranty slash insurance. And Tanner remember one of your students I guess I won’t say his name. But it does not matter, no one’s gonna know from his first name, Steve. I could probably just say what it is, it wouldn’t be a problem just out of super respect for privacy, it was a product that would never break or have an issue anyway, it was a hard plastic thing that would never break or have an issue. And he was making buku bucks getting like a 10 or 15% take rate on a warranty for an unbreakable item. That was just basically free money, it’s called a lifetime warranty. And I think he even told me he’s like, one of maybe thousands of people like hit me up on this warranty for it. So warranties and insurance can be a way to get free money from an order bump. Priority processing. I know you’ve talked about this a lot. So I’ll make it quick. This is not priority shipping, you’re not offering to upgrade their shipping at this, you’re just saying like, hey, our warehouse gets 150 orders. If you’re not order number 90 in the day will put you at the top of the queue, first to get picked in the process, you can charge five bucks or something for our priority processing just a little checkbox. And there could be also personalization to think of print on demand if you want the Father’s Day mug to actually have the dad’s name on it, you can say hey, personalized engraving, add five or 10 bucks extra, you can put the little personalized thing on there. Anything you want to add on there that jumps into your mind you think I covered?
Tanner Larsson 12:22
No, those are some very simple ones, they all work really well. And you notice a lot of these, like the gift wrap, the warranty insurance, priority process, and the personalization. Those are all easy order bumps that have high-profit margins and low fulfillment costs. That’s another thing, just because you can add a product as an order bump doesn’t mean you should if the margin is not there, or if adding the order bump dramatically increases the shipping cost. The idea here is that this creates a profit booster to your business not create an added expense.
Casey Brown 12:55
Exactly like we’re going to clarify more on that. But yep, exactly, I guess in all cases, there could be exceptions, you know your numbers, you know your fulfillment costs. But ideally, most of the time you would want this add-on to fit into the same box as your flagship product that you’re already shipping. This is just one more example I’ve pretty much explained it pretty well but this one has upgraded to a wood gift box as a checkbox, it doesn’t actually have a price there, which is interesting. That’s probably a missed opportunity for these people. But for people who can’t see it, they have their “shop now” button. This must be from a collections page. I forget where even got this from. But anyway, you can upgrade to the gift box to the checkbox there just to add the word gift box. And then you can add the extra straps. This is the watch example. And this right here is an example of an order bump. And there are two things that I want to point out from this. Actually, I’m going to come back to this slide and I’m going to talk about this one first. And so this is to clarify the thing that I’ve been saying that I’m going to clarify for the longest time now. We had a client, the one I’ve been working with for about four years now. And on her store, her order bump accounted for 3% of her total revenue. So you may think oh, that’s not so impressive. I just stopped sharing my screen. I’ll turn it on again in a second. It was almost $500,000 now that’s because the store did 17 million last year, thanks to COVID Christmas, amongst other things. But the store did 17 million last year 500,000 of that revenue about 3% was from the order bump when you’re talking about big numbers, all sudden percentages become a lot more like 1% of a trillion is 10 million. If I’m doing math, right 1% of a trillion is a million.
Tanner Larsson 15:09
You’re asking me?
Casey Brown 15:11
Yeah, that is not Tanner’s strong suit. But as I said, Oh, I got a 1% return on my 100 bucks. Okay, cool, you made $1, who cares. But if you invested a trillion dollars, 1% is now 10 million. So number one, we’re talking about, a lot of revenue, so 3% now it’s $500,000, but let me get an even more impressive stat here. That 3% of the total revenue was not 3% of our total profit, it was about 13% of her net profit. So I’ll say that one more time, the order bump, this free little check the box just added on if you please, would you like fries with that is 3% of the total revenue, but it’s 13% of the store’s net profit. And this goes back to what we were saying earlier Tanner, the ad cost which is the cost per acquisition is for the flagship product of this store. So whether she has an order bump, whether she doesn’t whether they’re buying one, two, or ten of these things. That product is what attracts the customer, that’s what brings in cold traffic. And the revenue on the order bump is just additional, it’s like a bonus on top of that. And the product is a very high-margin product is something that she sells for 10 bucks, and her landed cost is probably about $1 to $1.50 at the most it’s $2. So let’s just even call it a dollar, I think it’s more like $1 for her landed cost, so she sells it for 10 bucks, it cost her $1 it’s basically all profit. And the shipping cost is also free because it goes into the same box as the flagship product. So the margins on it are insane. It’s basically all the revenue from the upsell, not all of 90% of it, but basically, all of it is pure net profit directly in her pocket. So, everybody’s like, when it twigs snaps in the forest and the deers look up and they perk up. That should perk you up. And then honestly, we’re doing more to increase the take rate of this, I’m gonna go back to sharing my screen now. Because we can do even better than that. We can get total revenue to 6% and net profit from the order bump to 26% like double those. We’re going to talk more about that. Did you wanna say something?
Tanner Larsson 17:44
No, I just gotta say, guys, this is everybody’s, oh, she must have the perfect product and the perfect opportunity to order bump. But no, they’re not. I mean, does she sell good products? Yes, she does, obviously, her store did 17 million, she sells great products. But the order bump, any store can have an order bump, this is not something that is unique to this brand, or whatever else, you just have to get a little creative sometimes and spend some time thinking about it. But this is time well spent if you can get 3% of your total orders to take it. But make 13% of your profit from that take rate, that’s amazing. And honestly, I’ll tell you from a BGS Amplified Partner, BGS Ecom Insider status, this take rate on this product right here is actually very low. It’s still made or 500 grand, but it’s actually a very low take rate. And there are other things that we’re continually doing to optimize and tweak this in and make it better. But another way to increase the take rate potentially would be just switching to a different product that had a higher appeal.
Casey Brown 18:48
Yeah, we have to do with what she has. And with inventory, getting stuff from China right now takes longer and more expensive not to get off-topic. But yeah, we can do even better.
Tanner Larsson 18:58
No jump back in there and show them how you improved it.
Casey Brown 19:02
So there are two things I want to explain here. Number one is where I said, if your product requires a little bit more explanation, in this case, it definitely does require just a little bit of explanation. For the privacy of the client, I put this red bar over it. But click the box to Add Widget for 9.95 normally 14.95, clicking that would launch the pop-up and you can scroll through and get more details and explanations. And the other thing I wanted to show here is, this is called a Johnson box. For anybody who’s familiar with this. And for the people on audio. Basically what I’m showing is an e-commerce product page where most of the stuff is blurred out. I showed the checkbox to add a widget for this price and how that was a link that can click it up. And then there’s like, anybody’s ever cut coupons before, it’s like a red dashed line around the order bump section, it’s a border. It’s a dashed line border around the order bump section, it’s probably pretty obvious just to draw more attention to that area. So that’s what I’m showing here. And then the results of that was a recent test here. We can see here that this is the result of adding that Johnson box. 8.6% increase in conversion rate, I’m not sure why that happened. But I’ll take it, I think what happens is, I want to get off-topic here. But there are a few little bad apples with this thing, sometimes when additional product is 15 bucks, but if they buy it with the thing, it’s 10 bucks if they buy it with the flagship product, we give them a discount, but what they realize is that if they add both to cart, and then they delete the flagship product, they can just get the order bump at 10 bucks instead of 15. And it’s like, 5% of people, we still make money on it, because we charge them for shipping if they’re below a certain amount. So we still make plenty of money on it and they probably think they’re, sneak in one pass the goalie, but whenever we still make money, that’s what I think is accounting for the increase in conversion rate here, but under the better stuff. almost four bucks extra in average order value, about 375 extra in average order value. And here’s the big one 12.5% increase in revenue per user.
Tanner Larsson 21:48
Just by adding the Johnson box. And I think the other stat was, adding the Johnson box increased the actual take rate by 22.2% or something like that.
Casey Brown 21:58
Exactly. Yeah, I think I did include that in my slides. But I have that screenshot somewhere, I was looking for that. Yes, it was about a 22% increase in the number of people that take the order bump just by adding the Johnson box, which is again, is that red border around the order bump section.
Tanner Larsson 22:17
Order bumps as we’ve talked about it for a long time. That’s pretty much our favorite. And we’ve got other podcast episodes where we’ve gotten into other case studies of order bumps and everything else. We have apps for it and all that stuff. But what’s another one? What’s let’s go into another one.
Casey Brown 22:33
Let’s move into this in the interest of time. There are bundles, these are kind of obvious, I have a screenshot from Amazon, this is a camera with the lens. And this is actually an AC charger for it. This is pretty obvious bundling. We could talk we’re going to try to keep this episode shorter, we can absolutely get into this more in a later thing. I think bundling is a pretty obvious one. What can go together? What can you bundle together and then give them a discount on? And especially because you’re gonna be able to put everything in one box. So your margin on shipping is going to be a lot more as to be a lot better. Anything you want to say on that or should we just kind of breeze through these.
Tanner Larsson 23:19
One thing about bundles is we’ve actually developed a hardcoded app, with hard-coded functionality so people can build their own bundles. Just because you want to put products together doesn’t always mean they sell well together, the best way to do that is to do a basket analysis and find out what your customers buy, and then create bundles based on that. But another thing that we’ve been finding great success with is allowing the customer to build their own bundle and receive the bundle discount still. So we’ve actually developed an app that does that. It’s super cool. And makes our stores a lot of money.
Casey Brown 23:58
That’s amazing. Let’s see here, this a quick result, talking about bundling still, on the shop page, AKA all collections like showing all products on the store, which is actually on this store where the client sends traffic to. By the way, think of that too a lot of you guys send traffic directly to the product page, consider sending it to the collections page. But anyway, the result of this test is not quite finished yet, we’re gonna let it run a little bit longer. I like to run these to about 800 to 900 purchases total. And this is about 700 purchases. So it’s almost fully significant data. As of now, and I just checked today it’s actually holding strong at this about 6% increase in revenue per user. So that you know there’s product product product product product. What we did is the second product on the collections page is a bundle. That was the test, so it was just product ABCD, its product A bundle, B, C, D, E, F, G. So that’s how that went on bundling. Subscriptions. you could almost write a book about this whole topic.
Tanner Larsson 25:18
I could almost write a book.
Casey Brown 25:19
Yeah almost, with a whole chapter dedicated to MRR, which is monthly recurring revenue, we should maybe get around to doing that sometime. But that’s an obvious one. This is from Black Rifle Coffee. So this is kind of an obvious one. This is not going to apply to a lot of you if your product isn’t consumable, although Tanner, again, we’re keeping this short. But I’m sure you could rant forever about this. There’s a lot of other ways to do subscriptions, and get monthly recurring revenue without consumables, in the Subscribe and Save the model.
Tanner Larsson 25:54
Yeah, if you want to talk subscription, guys, you want to hear that we did another episode about a month or so back. Me and I think it was Brad. And we went deep into subscription models and ways you can do it without having consumable products and everything else, any kind of continuity level where you’re getting monthly billing or quarterly billing or annual billing out of these people is phenomenal. A couple of quick ones that are really easy. You could do a loyalty club, a VIP club, you could do an association, you could do some kind of digital component that goes along with it. We have an Ecom Insider member who sells joint products and stuff like that, specifically for knees and things like that. And he built a digital continuity, that is actually crushing it now. Micro continuity is super cheap, but they get into that and they get digital content that supports the joint supplement type stuff that they sell. And they’ve got multiple levels of continuity there because they’ve got supplements, and they’ve got the digital continuity.
Casey Brown 26:55
Isn’t that a great thing too? That can be almost the whole brainstorm session is what digital components you can add to an ecom business? Because digital is like all profit. I mean, if you write a newsletter, you have to pay somebody to write the newsletter, but then you can leverage it and send it to everybody.
Tanner Larsson 27:12
You can also add a digital component to your flagship products to increase the price of your flagship product.
Casey Brown 27:18
Continual extra margin.
Tanner Larsson 27:20
Yep, gives you extra, it’s like, hey, you’re getting my foam roller, but I’m going to give you access to my digital membership foam roller exercise library with 5000 exercises and combined. Now it’s a $70 foam roller instead of a $27 foam roller or $30. foam roller.
Casey Brown 27:39
Yeah, I’ll just keep it moving here. Because I know you don’t want to make this one too long. A free shipping calculator. This is kind of an obvious one. So this updates in real-time. So in the header of the site, it says only 11:05 away from free shipping. I think, whether you’re on YouTube or audio, you probably know what a free shipping calculator is. I won’t harp on this too much. We have ours in the cart as well. And we’ve all done that, we’ll all spend an extra $50 to save $1 on shipping practically, you know what I mean? Everyone has done that.
Tanner Larsson 28:14
Free shipping is typically an irrational, emotional decision versus a practical one, but there are different ways of doing it. A free shipping threshold just means like, hey, spend $50 or more, and we’ll give you free shipping. The free shipping calculator actually does the math for them. So for people like me, it reminds me it’s like, Hey, you put a $40 product in your cart, you spend 10 bucks more, you get free shipping. So it literally just tells them and as that number drops, it’s like oh god, I only got to add one more thing to my cart, and I get free shipping. So then I go scramble around to find something else that I want.
Casey Brown 28:47
Yeah, absolutely. Thanks for clarifying that, I don’t think I explained that super well. But yes, there’s a threshold, you say it’s 50 bucks. And then as they start adding things that calculate, lets you know how much extra you have to add.
Tanner Larsson 28:58
And one thing on that is the threshold matters, guys, we’re talking about increasing your AOV. So if your AOV is 40 bucks, your threshold is not 40 bucks, your thresholds should be 50 or 55, or 60, you really want to be 25 to 30%, at least higher than your AOV. And then the other pitfall there is once your AOV starts to rise because of your free shipping threshold. Your free shipping threshold needs to rise as well. So you keep using that to get your customers to spend more and more and more money.
Casey Brown 29:28
Yeah, absolutely. The next one is one-click upsells aka sales funnel. The best app right now is Cart Hook. I don’t like Zipify OCU as much because it’s missing some basic features that the legacy version had. Long story short, the older version did not use Shopify as native checkout, it went off Shopify had its own checkout page. And then Shopify was not allowing that anymore. So they had to go to native, meaning they just use Shopify as checkout. It’s not something outside of Shopify, but they go from product page to cart to staying on Shopify to the checkout. But they’re missing some basic features like an image carousel, every e-commerce website you’ve ever seen, since the 90s has had an image carousel, meaning there’s a big picture of the product. And then below it, there’s a lot of little thumbnails. So you click the tiny yellow purse, and then the big image above it changes and shows you the yellow purse, etc. We’re seeing the best with a Cart Hook right now and have some you know, stats up there. Do you want to expand on this at all?
Tanner Larsson 30:51
Guys, on Shopify, one-click upsell technology is still unfortunately limited because Shopify changed the rules, they always changed the rules, but we used to do third party Checkout, take people out of the checkout into the third party and do our own upsell process, Shopify is changing the game again, and now they’re bringing it inhouse so they can collect more revenue on that. And they’ve only allowed a couple of the apps out there to come on the in-house team and start doing that specifically as Rizzo and Jordan Gal’s CartHook. Those guys are in there. But again, Shopify still limiting them on what they’re able to do. So it’s better than nothing, but it’s not as going to be as free or as awesome as if, say you were on WooCommerce, Commerce HQ, or one of the other ones where you actually have full control of the upsell down sell functionality. With that said, still worth using work within the constraints if you’re on Shopify and get your upsells in place.
Casey Brown 31:49
Yeah, it’s not that bad. If you want to do some really complex stuff, it wouldn’t work but if you’re just going to do fairly simple upsells they work really well as far as you know upsells could be a whole episode. But going back to the order bump thing, something that you know complements the product on an upsell page you actually can have a little bit more room for a little bit more explanation with consumables typically you just see the same thing they just bought and then sell them more at a discount like if it’s supplements they bought three bottles of turmeric sell them three more at a 50% off or whatever you can afford off.
Tanner Larsson 32:34
And why it’s important? Guys, I mean we can definitely go into this but when it comes to increasing the AOV, out of anything you can do in your brand. Upsell number one makes the biggest impact and contribution to your AOV over anything else you’ll ever do. Even the order bump everything else, upsell number one is the number one impact driver to boosting AOV so if you don’t even have an upsell one you’re hurting yourself.
Casey Brown 33:00
Yeah, absolutely. I think I’ll move on because again we could talk about if I keep going on one-click upsells and funnels will be here till will die of old age. Okay and then the last one is cross-sells again this is just very simple so we don’t spend a lot of time. And I have an Amazon screenshot for you guys on audio. It’s literally just frequently bought together products related to this item customers also bought where you’re looking at like here we have a camera and it’s just showing accessories for the camera like one is a different camera. One is a shoulder rig, one is some type of charger and the other ones are bundles going back to something we were saying earlier. But instead of just buying the camera, there’s the bundle. So typically you see it on the product page, near the bottom, maybe right above or below the reviews. And again, it’s just like cross sells, I think you guys know, they are suggested products related products. You’re looking at this Father’s Day mug. And then, we also recommend and then there’ll be five more five different Father’s Day mugs with different slogans they can look at. Not too much to be said about here. Again, we’re trying to make not to make this podcast the longest ever. But if you want to add on to that.
Tanner Larsson 34:22
So cross sells are great, they’re a good way to showcase other products, customers also bought tends to be my preferred way of doing it because people want to know what other people like and other people have been there before them. But the problem with cross sells is most people do them wrong. That’s where cross sells actually get used the most which they have them too high up on the product page where they actually cause a distraction from the actual purchase that in the add to cart that we’re trying to get. The hierarchy of focus on the product page should be on the Add to Cart button and that’s it. All we wanted to do on that product page is click the Add to Cart button. Now, can you still have recommended products? Absolutely. But it should be down well below the fold below all the pertinent information for that main product that’s going to help them make that decision. At that point. Yes, you can have it. It’s another place people put it in the cart. Having recommended products in the cart, and Casey can tell you, that’s no bueno.
Casey Brown 34:27
Absolutely. You want me to give a one minute summary of what we talked about?
Tanner Larsson 35:05
Sure, that would be great.
Casey Brown 35:25
So, guys, we talked about how to boost average order value, we’ve explained that the revenue from these add on additional products that are not the flagship product cuz you’re using some traffic to drive sales, there’s Facebook ads or influence or something that drives the sale even if it’s SEO, whatever gets people on that product page to your flagship product, the margins are gonna be a lot lower on that because you’re paying for ad costs, you’re paying influencers, you’re paying somebody to get them there, the revenue from the additional products, the upsells are a lot higher net profit. We talked about order bumps, which is just under the Add to Cart button checkbox to add gift wrapping an additional product, personalization, etc. Then we talked about bundles, we talked about subscriptions, free shipping calculators, which calculate the free shipping threshold, so you added 30 bucks, just add 20 bucks more, you get free shipping. We talked about one-click upsells through a funnel, which means after they make their initial purchase, it says thank you for your purchase, we got your money, but hey, would you like fries with that? Would you like to add a drink? Something else on to that. And that’s one-click will add it on to their order. And then the last thing we touched about which is cross sells, which is just customers also bought showing similar products on the product page.
Tanner Larsson 37:01
Absolutely. And guys, thank you for listening to this. I know this was a quicker episode, we wanted to see how it went with everybody going a little bit faster. But everything we’ve talked about here, number one, if you want to see the examples, go to BuildGrowScale.com forward slash podcast to get that. But I want to give you three more resources where you can get deeper into everything Casey and I just talked about today. Resource number one is this podcast. If you just go back a few episodes, you’ll see another episode on AOV, you’ll see episodes on priority processing, you’ll see episodes on cross sells, you’ll see episodes on different ways of boosting AOV, and lots of stuff there in product page stuff, all that. The next resource, the YouTube channel, okay, if you’re on YouTube watching this right now, you’re already there, go check out some of the other videos, we have tons of very specific, how to use this type of upsell, how to use this type of order bump, how to do this, here’s how to do order bumps for POD, how to do order bumps for China drop shipping, how to do this. The final resource would be the blog, which is at BuildGrowScale.com forward slash blog, where guys like Casey and all the other Revenue Optimization Experts, all contribute articles and training topics on how to do all this stuff. So there are complete roadmaps on how to do all of this stuff. And every resource I just listed for you guys is free. You don’t have to pay us anything. I highly recommend you guys check those out. And right now what I need you to do is click the like button, click the subscribe button. Make sure you subscribe to this podcast so you get notified every time a new episode comes out. And then also leave us a review, let us know what you think of the episode, what do you think of the podcast in general, if you have ideas for topics or guests, or anything we want to hear from you because we do this podcast for you. With that, guys, I will see you in the next episode. Casey, thank you so much for being here. And everybody. Have a great day. See ya.
Casey Brown 38:50
My pleasure, bye.
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