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2X Your AOV with the Mix of Quantity Breaks And Free Shipping Upsell

In the competitive world of e-commerce, maximizing your Average Order Value (AOV) is crucial for profitability, growth and scaling your ad accounts. One effective strategy to achieve this is by combining quantity breaks (1) with free shipping upsells (2).

Introduction

If you’re new to this terminology, quantity breaks (1) is a way to encourage people to buy more by giving them a discount when they buy bigger quantities.

Here’s an example:


Notice how buying Duo (two units) is a better deal for a customer, than buying Single (one unit). The same goes with Trio (three units), instead of just one or two. The customer gets a better deal (lower price per unit), while you make more sales (and more total profit) from each buyer. Win-win!

Now …

Free shipping upsell (2) means that when people spend a certain amount, for example $50, only then they will get free shipping. If they haven’t reached $50, we suggest another item (in other words we try to upsell => to sell more).

That’s it!

Here’s an example of a free shipping upsell:

It’s a nice visual incentive to buy more. People often seek free shipping and they don’t mind spending extra $10 or $20 for free shipping. You make more money, while only the deserving big spenders receive a convenience.

Stage 1: How do these strategies work together?

Imagine someone opens your best selling product page.Next to the button “Buy it now”, there’s a banner that says “Free shipping for orders above EUR 50!”. They also see bundling options at the product page:


Such a product page gives them two big reasons to buy more: a discount AND free shipping!

Now, imagine that for some reason they put only Single product for $40 in the cart:

Now their free shipping progress bar shows “You’re only EUR 10 away from free shipping!”

They get to click: “Continue shopping”.

Once they click, they will see:


They can choose to add one more (or multiple) units! 

And if they do…


The progress bar turns full and says “Congratulations! You’ve got free shipping!”.And although products were selected separately, now two Single products are merged into Duo with a volume discount (not $80, but $72):

With this strategy, the person bought 2 units, instead of 1. Only because they were incentivised by a discount, as well as free shipping!

Result:
This strategy increased the average order value from $40 to $72 (almost double).

Important note: 
Please pay attention to your profit margins and the average cost of shipping when deciding on the free shipping threshold. You might start with a moderate threshold and adjust it based on customer response and the impact on your sales and shipping costs. When using quantity breaks and a free shipping upsell, set your prices so that sales of larger quantities, even with free shipping, still result in greater total profit for your business.

Stage 2: Setting Up Quantity Breaks

Here’s a step-by-step guide on how to implement quantity breaks. This will create a sense of saving for your customers, while you can make more money.

Step #1: Install the app by clicking this: link.

Step #2: Once installed, apply the discount code EPICBLOGPOST20 for a 20% discount.

Step #3: Choose order value booster type. We recommend starting with a “Product page” booster. And when you’re ready, you can do a top/bottom bar, as well as a cart page booster.

Step #4: Publish the block to all (or selected) product pages and start tracking revenue results.

Stage 3: Setting Up Essential Free Shipping Upsell

Step #1: Install the app by clicking this: link.

Step #2: Once installed, setup free shipping rules in Shopify settings (link is provided), and then start by clicking “Create a new booster”.

Step #3: Choose order value booster type. We recommend starting with a “Product page” booster. And when you’re ready, you can do a top/bottom bar, as well as a cart page booster.

Step #4: Customise the content.

Pick the goal for free shipping, choose the currency, progress messages and language translations (if applies):

Step #5: Design the looks of your free shipping bar.

Including background color, gradient settings, corner radius (amongst other things):


Step #6:
Select the banner placements.


It can be either all products or just selected ones. You may choose a custom position and you may choose geolocation targeting (premium feature). If you have any questions, feel free to contact the support.

Step #7: Activate (and save it), publish and check if everything looks great!


Make sure to check your storefront website, test everything and if you have any questions, again, feel free to contact their support (they’re doing a great job!).

Step #8: Consider setting up a top bar / cart page with the same free shipping settings! 

Stage 4: Integrating Both Strategies

The magic happens when you combine quantity breaks with free shipping. Here’s how the final result could look like (and that’s far from the best you can pull off):


Here are extra tips to make this strategy work:

A. Align Discount Tiers with Shipping Threshold: Ensure your quantity break tiers encourage customers to reach the free shipping threshold. For example, make the basic price at the tipping point (85-99%), where they have to buy something extra just to get free shipping.

B. Cross-promote: Use top bars and cart pages to promote the benefits of buying more for discounts and free shipping (as shown in Step #8).

C. Test and Analyse: Continuously test different thresholds and discount levels to find the sweet spot that maximizes your AOV.


Marketing and Promotion


If this is the first time ever you’re doing a promotion like this, it’s a good idea to tell your customers about it.

Three best strategies:

A. Email Marketing: Send targeted emails to existing customers highlighting bulk discounts and free shipping. For maximum impact you may do this on and off for specific occasions (let’s say Christmas sale or Valentine’s Day).

B. Social Media Campaigns: Use social media to promote bulk deals and /or free shipping offers.

C. Text Inside The Ads: Name about this offer inside the text (copy) of your ads. Highlight in the ads the savings they can make with bulk purchases and free shipping.

Conclusion


By implementing quantity breaks and free shipping upsells on your Shopify store, you create a compelling incentive for customers to spend more. This strategy not only enhances customer satisfaction but also significantly boosts your AOV. Remember, the key is to test and adapt your approach based on customer behavior. Happy selling!

To install the #1 quantity breaks app, click this (Kaching Bundle Quantity Breaks).
To install the #1 free shipping upsell app, click this (Essential Free Shipping Upsell).

FAQs

Q: Can I apply quantity breaks to all products?

A: It's best to apply them to products that make sense for bulk purchases and are popular among your customers. But to answer your question directly, yet you can apply quantity breaks to all products at once.


Q: Will offering free shipping reduce my profit margins?

A: While it might affect margins, the increase in AOV and sales volume can offset this. Plus, customers tend to buy more when free shipping is offered. At the end of the day, make calculations and adjust pricing accordingly.


Q: How do I know if the strategy is working?

A: Monitor your AOV and sales data in Shopify’s analytics before and after implementing these strategies to evaluate effectiveness.