There is important data for your online store to maximize profits and sales. Average Order Value. It is generally known as AOV due to its English abbreviation and is widely used in this way. So what does this mean to AOV?
Generally, AOV is an e-commerce metric that measures the average sum of each order placed with a merchant over a period of time. In fact, AOV is one of the most important metrics that E-commerce sites should be aware of; It is important in making basic business decisions such as advertising spending, store placement and product pricing. AOV is determined using sales per order, not sales per customer. Although a customer may come more than once to make a purchase, each order will be included in the AOV separately. The calculation system is very simple. AOV = Total Revenue / Number of Orders Received.
Although Average Order Value does not mean a seller’s profit or profit margin, it directly affects these metrics. For this reason, in this article, we will talk about dropship packages, which are one of the most used ways to increase the average order value.
What are Dropship Bundles?
The concept of packaging products is nothing new, and retailers have been doing this for decades. In its simplest form, a bundle is the act of bringing together 2 or more items that are normally sold separately into a bundle deal to make the customer spend more than just buying one item.
As you can understand, we can call it a modern presentation of the basic marketing principle, 2 buy 1 pay. It is very important to create an attractive offer for your potential customers. The customer may have visited you to buy a single product. You have to find a way to direct the customer to these opportunities.
What are the benefits of product bundling?
Creating a bundle by grouping products is the act of bundling complementary products together and selling them at a discounted price or added value. While it’s a very popular tactic during the holidays, with the right combination, product packages can be used to generate profits all year round. The main goal is to make a profit and increase your average order value indirectly.
In the first quarter of 2020, the average order value for online retailers was about $ 82.5 (USD). While your average order value varies according to the average price point of your products, you should actively try to increase it.
Other benefits can be listed as follows;
- Promoting product packages in your nonstop store can increase the perceived value of your products in the eyes of your potential customers.
- It can increase your income without you needing to attract more customers to your store.
- You can attract more people to browse your store by posting your product packages on social media.
When to offer product bundles in your dropshipping store?
Opportunity days or certain special days can be preferred to create discount opportunities. However, your goal is basically to increase your profits, so you should make dropship packages continuous throughout the year. However, it will be important for you to use product packages in some special moments. You have a new product and you want this product to become more familiar; You can create a package with a sold product. Combining slow-moving products with a popular product is a popular packaging method. A package can be as simple as combining two useful things or as complex as creating an elaborate gift basket. To make product packaging work, keep in mind that the product combination can make customers’ lives easier or help turn the product they want into a better product with the help of the additional product in the package.
Dropship Bundle Ideas
You can create multiple ideas for creating dropship packages, but ideas that have already been used and worked many times will help you. The easiest way to start creating dropship packages is to offer them more of the same product. We entrepreneurs and marketers tend to complicate things, but the truth is that it’s often simple ideas and concepts that have the greatest impact.
However, I suggest you make a quick list of all the bestselling or popular products in your store to implement this idea. Then create a new bundle offer that aims to give them multiple but at a discounted price. Of course, there are more ways to create attractive dropship packages than offer the same product to them. The second and most obvious way to bring products together to increase sales is to match related products. Think hamburgers and french fries, a shaving cream razor, matching bedspread, or a linen pillowcase. I think you get it.
I think there is one more important point you need to know before creating great product packages that will make you more profitable. And those are souvenirs. Gifts and gifts are one of the most important points of product grouping. I strongly recommend you to read the blog we wrote about “Souvenirs and Gifts” to have more information on this subject.
Finally, I would like to tell you about Pirahas Dropshipping Software, the indispensable assistant of individual sellers who make e-commerce using the dropshipping method. Pirahas provides a unique automation system not only for Dropships but also for all e-commerce models. Pirahas allows you to easily import dropshipping products into your Amazon store, automatically update them continuously, and send them directly to your customers in just a few clicks. Dropshippers using the Pirahas application with its repricing, dynamic pricing feature, which will be put into service very soon, will be able to find the right products and offer them for sale at the most preferred price in the target market with the product automation that makes point shooting. With its CRM and Product Research features, Pirahas also offers free dropshipping training for new sellers joining the e-commerce world.