How To Skyrocket Your Average Order Value With Winning Offers (Shopify Bundle Tutorial)

One of the main reasons that e-com brands struggle to scale is actually because of their average order value being so low. And so one of the best tools and tactics that I've come across is helping brands to actually increase the average order value through bundling. And what bundling is, is when we take some of their low item products basically on their own and combine them with their other products or supplementary products to help boost the overall perceived value that the customer has If you can get a customer to spend more on their first time interacting with you, it means that you can spend more on your ad spend. So you can then outbid your competitors when you're bidding for new customers. And of course, it's gonna give you a massive competitive advantage. And that's actually one of the secrets of how a lot of 9-figure brands out there scale so fast, is because they have a really, really solid offer with really, really healthy margins. And because they're making people check out at a high AOV, they're able to scale and spend so much more on ad spend. So they're able to scale so rapidly. So if you want to learn how you can do this for your brand, let's dive into this. Okay. So one of the brands that I've got here that we work with is Right We Naturals. And when we started working with them, they literally just had the soap. And by the way, these products are amazing. I actually use them myself. They're like these natural soaps. But when they started working with me, they had the soaps just separate and they would sell them separately. So what we did is we combined them into a 4-pack and I'll scroll down here. We got a 4-pack and we got a 9-pack. This is, this is when we were starting working with them. But since then we've upgraded it to like a 21-pack. And I think the other one is like a 27-pack now. So they're going quite serious on the bundling because it works. So, um, you can see here though, and, and I was on a call with someone yesterday and they were saying to me, um, you know, we were chatting about bundling and we were saying, oh, would people really spend a lot of money when they're interacting with my brand on the first time? You know, the person who's on the call was skeptical that that would work. And what I said to him is like, you know, it, it doesn't matter if, if you think that your product, um, like is expensive or you think that your niche is a little bit more price sensitive than other niches. If you can craft an offer in a really, really smart way and give people a lot of value, it's gonna convert, you know? And it, and really the success of a really good offer in helping people to spend more comes down to positioning it really, really well and your messaging. So how you're actually describing the benefits of someone checking out now. And the way I like to talk about it is, um, you know, imagine you're going into like a store or something like that, and you see this product that you really, really like. And you think to yourself, maybe, maybe we'll just go with the soap, for example. Imagine this is a physical store that you're going into and you've driven out into town. Like, let's say you're a 20-minute drive in. And you see the soap and you know, wow, okay, I really, really want to buy this. But of course you're thinking in your back of your mind, I'm gonna obviously consume this within like a week, so that means I'm gonna have to come back here again. And then you can actually see on the display stand that actually if you buy 3 more soaps, you're actually gonna get like the 5th and the 6th free. And so you think to yourself, yeah, hell, why not? Why not spend a little bit more now, get the soaps that I really, really want, and of course get 2 for So you can see what I mean. Now you've— it's all about the art of positioning it. Now that's obviously a little bit of a poor example, just kind of made it up out of thin air. But when you sit down with this and you look at your own products, whatever space it's in, especially if you're in supplements or like a— I call these like, you know, consumable products where basically you can consume them within like a week or so or a month. This is especially good for bundling because a lot of the time when I see in the e-com space, you see brands pushing subscription really heavily, but subscription is a lot harder to get someone to convert on than someone bundling and checking out more. And this is interesting. This comes down to like human psychology. And the reason for is because subscription, the way I like to think about it, it's like asking for someone for like a marriage proposal on the first date versus Getting them to spend more is more like just asking them, hey, do you want to— we're going on a date, but after this date, you want to go to like the fun fair and we can just have fun out there for another couple hours. You know what I mean? So it's a little bit more commitment, but you think, yeah, you know what, it's not, you know, it sounds fun. That's the difference, you know? And I'm not saying that subscription doesn't work for people, but you need to be super dialed in if you want that to work. And you need to obviously make sure you get everything aligned. Aesthetic Greens is a really good example of someone who's done a subscription well. You can see of how they're positioning their bundle and they call it like a welcome kit. This is a subscription basically, so you can update or cancel anytime. And look at, look at the art of how they're positioning it. They're making out as if that you're gonna get all of these other free items for free. And so when I'm somebody who's coming into their funnel and I'm engaging with that Aesthetic Greens the first time, Now, when someone is asking for me for that marriage proposal on the first date, that's what it's like with Athletic Greens. I'm a lot more willing to do it because I know I'm gonna get all of these extra free stuff for free. But here's the problem. Most e-com brands who offer subscription do not do this. They don't offer, they may offer some free gift or something like that, but it needs to be juicy. And when you look at Athletic Greens, this is a juicy offer. This makes— this is obviously— they've been running this for like a really, really long time now. So it's obviously crushing for them. But I can— I just know by looking at it that it's crushing for them because I would feel compelled to purchase this if I knew that not only am I going to get the pack, which is what I came for, but I'm going to get the free bottle. I'm going to get the shaker, the scoop, the canister. I'm going to get the travel packs. I'm going to get also the vitamin drops as well. A 1-year supply of that. See what I mean? So, so, and the thing is like, this is not really going to hurt their margins because they know that their lifetime value for a customer is worth so much more than these free gifts that they're giving away. So let me go back to Right Wing Naturals. Now we're not offering a subscription with, with them. We have it on one of their other products. But the thing is, we, we just knew that, okay, we don't really have any other supplement products we can offer for free to give this away. but how could we just make the bundles? How could we just make people to check out and when they're checking out, to check out at a higher AOV the first time? And that's obviously why we positioned it. The 9-pack, you get 25% off. The 4-pack, you basically, you don't really get any savings for that. And so we're not actually giving anyone the option to check out for just one soap. You have to spend a minimum of $36. And the thing is, this has been a big success for them. And of course, the real success of this business is because Their product is really, really good. And of course their margins are really, really good on this product. And the offer is really, really good. So then people are just going to come back into this funnel, which they're doing and buying this over and over again. So you can see, you can see the power of this. Now, these guys, we are positioning, we are offering the subscription, but it's not the main thing again, because it comes back to that principle. If you're offering the subscription on something, you're asking for a marriage proposal on the first date. And if you want someone to marry you on the first date, you've got to offer one hell of an offer. You know, it's got to be irresistible basically. And creating an irresistible offer for the first time that somebody interacts with you, um, basically that's going to take some advanced, some advanced strategies and some advanced thinking and looking at your margin and calculating your lifetime value. Basically some brands who offer, um, like you're looking at Athletic Greens, they're digging into their margins their first time that they're offering that subscription. They're giving away all that free stuff right? So they're potentially losing money on that first time, but they know that when someone subscribes to them and enters into their funnel, the lifetime value of that customer is worth so much more. So that's the difference. So when you're doing something like that, you have to be very clear on your numbers. So, you can see with Ro, we're positioning it 6 bottles. You got 3, you got a 3-month supply, you got 1-month supply. If people are going to buy the 1-month, we're really just like, disincentivizing it because you're having to pay full price for it. So it's almost making it like a no-brainer for someone to go for the 3-month or the 6-month supply, because here you're getting a massive discount and here you're getting a massive discount. So this is the art of it. I'm just teasing you into this, but hopefully you can start to kind of think about how I'm thinking about structuring offers and how you can apply this to your own brand. And hopefully this is giving you some good ideas.