When you look at your profit report on your eCommerce store, there can be a feeling in the back of your head.
“What if I could be doing more? Is there some technique or method that I don’t know about?”
You’re completely right to think that, why wouldn’t you want more efficiency in terms of revenue?
Well, we’re going to introduce one method that we’ve researched extensively, and even made a product from it! You’ve already heard of bulk selling, I’m sure, but let us introduce to you why bulk selling, itself, is a great way to increase your AOV!
What Even Is AOV?
If you’re unfamiliar with the acronym, we’ll save you the Google search! AOV stands for Average Order Value.
The name itself should be self-explanatory, but just in case, an AOV is an average revenue made from a customer order, taking into account the total amount of money made in their baskets.
Don’t worry though, there’s a multitude of ways to increase AOV!
You can offer free shipping for a certain basket amount, create bundles and packages, upsell low-cost products, and even set up a customer loyalty program! These methods are just a drop in the ocean compared to the number of strategies you can apply to your eCommerce store!
But in this case, we’re focussing on bulk selling alone, as that’s our expertise!
Bulk Buying Vs Single Purchase
So what exactly is so great about utilizing bulk purchases? To find that out, we need to establish what the normal routine is!
A standard purchase is one simple, singular purchase, similar to what you’d experience through buying absolutely anything off Amazon. Simple, right? Not for your AOV!
Bulk purchasing has 2 major advantages. The first advantage is that the more products sold, the better the AOV. It’s that simple.
The second advantage is that by offering a slight discount on accumulated goods, you can push that sale by offering more value and more money saved. The customer will spend more than they normally would which is ultimately a win for your monthly revenue. It’s a win-win because the more they purchase, the more attached to your brand they become.
When To Upsell
The cheeky thing about bulk selling is that you can influence the data on your AOV by utilizing some simple, yet effective, psychology.
When you buy in bulk, there is an economy of scale in the discount in pricing.
It’s important to utilize the right kind of deal though when upselling more of the same product. 2 for 1 is seen as more attractive than a 50% discount, as the perceived value is getting an extra product for free, rather than getting the next product at half price. The higher the volume, the deeper the discount vs a singular item offering a percentage off the top.
When To Discount
The discounting does not need to extend to absolutely every product you have to increase your AOV.
Your most popular products won’t necessarily need to have a discount attached to them for the inventory to deplete to make room for newer inventory.
But offering bulk selling discounts on your average to low-cost products, you can increase your sales and empty your stock.
AOV will always be your most prominent stat in the commercial industry, as it indicates how much you’re getting out of your average pool of customers.
If you’re interested in this, we’ve made it extremely effortless for you to integrate bulk selling into your Shopify store. Bulk Discounts Now for Shopify makes the process seamless and entirely customizable.
Install today and start testing out new strategies to increase your AOV.