How to Use Amazon Product Bundles to Increase Average Order Value
It is crucial to develop solutions to raise average order value (AOV) as the eCommerce market becomes more competitive. But how do you go about doing it? Higher prices, new packaging, or more advertisements? By simply raising your average order value, you can also expand when you earn more money with your current goods, services, and conversion rates.
What is AOV (Average Order Value)?
Amazon average order value (AOV) is the typical amount customers spend in a store per order in a certain period, e.g., per month or quarter.
How to Calculate Average Order Value?
You can calculate your eCommerce brand's AOV by dividing its total takings by the number of orders. The AOV formula is:
Revenue / total orders = AOV
For example, if your store's Q2 revenue stood at $120,000 and you saved 3,000 orders, your AOV calculation would look like this:
$120,000 / 3,000 = $40
What is an Amazon Product Bundle?
Amazon product bundle is two or more complementary products sold together in a single listing. The customer may purchase whatever they require with just one click, offering both value and convenience.
How Bundling Can supercharge Your eCommerce Business?
If you've seen a lot of retail and eCommerce firms use bundling methods and are unsure of how it could benefit your company, we can help. Let's look at several methods bundling can boost the performance of your store:
Increased ad spend ROI
A new customer will cost you less money to bring in if they spend more money with you. Additionally, if the customer returns, it will raise your advertising's return on investment and increase the profitability of your business.
Improve inventory turnover speed
Bundling can increase your inventory sell-through rates because it allows you to move more products in a single transaction. Getting rid of underperforming SKUs and improving ranks on online marketplaces are both made possible by this benefit.
Introduce customers to other products
Bundling will give your products the chance to shine, whether you have a wide range of products or are preparing a fresh launch. A tempting bundle offer can also pique customers' interest in more products in your portfolio, raising the customer's lifetime value.
Get Higher Returns Over Time
In the eCommerce industry, 27% of first-time customers come back to make more purchases. After their second or third purchase, this percentage rises to 54%. As a result, when you improve your product bundling strategy to reward client loyalty, your store's sales can rise significantly.
Conclusion
In the eCommerce industry, 27% of first-time customers come back to make more purchases. After their second or third purchase, this percentage rises to 54%. As a result, when you improve your product bundling strategy to reward client loyalty, your store's sales can rise significantly.
Make sure that you're not bundling inexpensive and irrelevant products with your premium products.
Bundle similar items. You can even recommend products to your customers to create a bundle.
The cost savings should be obvious to customers, increasing the perceived value of what you're selling.
If you follow these strategies, you'll be able to increase your AOV.
About Tool4seller
A best-in-class Amazon seller tool that is specialized in sales& profits analytics, PPC optimization, keyword research, competitor tracking, instant alerts for listing hijacking, price changing, and inventory updates, etc.
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