The lowest hanging fruit for any DTC brand looking to increase ROAS and scale revenue is focusing on your on site metrics!
I have put together a number of easy tests to conduct that WILL ultimately help achieve the results
You're gonna want to bookmark this thread for later
I have put together a number of easy tests to conduct that WILL ultimately help achieve the results
You're gonna want to bookmark this thread for later


TEST # 1: FREE SHIPPING
-Many brands offer free shipping, but might not realize that it is actually making them lose a TON of money. In order to see if free shipping is right for your brand here is a simple mathematical test to run.
-Many brands offer free shipping, but might not realize that it is actually making them lose a TON of money. In order to see if free shipping is right for your brand here is a simple mathematical test to run.
-Assuming you are currently utilizing free shipping:
See what % of your AOV is represented in your cumulative cost to ship an order (make this is cumulative of all expenses) Simply divide the expenses by your AOV. If CR is not increased by this #, you are burning cash.
See what % of your AOV is represented in your cumulative cost to ship an order (make this is cumulative of all expenses) Simply divide the expenses by your AOV. If CR is not increased by this #, you are burning cash.
For brands at scale, this exercise can literally save millions per year.
BONUS: you can split test the cost of shipping and see how it impacts your conversion rate to achieve the BEST results possible simply by doing the above equation.
BONUS: you can split test the cost of shipping and see how it impacts your conversion rate to achieve the BEST results possible simply by doing the above equation.
EXTRA BONUS: You can also split test shipping prices BEYOND your cumulative expenses and see how it effects conversion rate. If conversion rate is not altered, you have now made shipping a profitable line item.
CONGRATS!
(You would not believe how well this works. TEST IT)!
CONGRATS!
(You would not believe how well this works. TEST IT)!
TEST # 2: THE PRICE OF THE FREE SHIPPING THRESHOLD
If you conducted test #1, you've likely witnessed that applying free shipping on all orders does not make financial sense
If you are now charging for shipping after conducting test #1, here is a SURE FIRE method to increase AOV
If you conducted test #1, you've likely witnessed that applying free shipping on all orders does not make financial sense
If you are now charging for shipping after conducting test #1, here is a SURE FIRE method to increase AOV
Setting a price for customers to achieve free shipping, is a PROVEN way to increase AOV.
Just like test #1, test #2 is a simple mathematical exercise to determine where you should set the free shipping price threshold.
Just like test #1, test #2 is a simple mathematical exercise to determine where you should set the free shipping price threshold.
In order to conduct this exercise, youre going to need your control group, (current AOV, CR, and EPC)
Best practices are to understand what the average price of an item is on your website. Next, you want to take 50% of the price of that item & add it onto your stores AOV
Best practices are to understand what the average price of an item is on your website. Next, you want to take 50% of the price of that item & add it onto your stores AOV
This will incentivize customers to add an additional item to their cart.
Something to be mindful of is to ensure that your margins on this additional product outweigh your cost of shipping.
Something to be mindful of is to ensure that your margins on this additional product outweigh your cost of shipping.
For example, if your cost of shipping is $10 and the margin on that additional product is $8 you'd be losing money on customers now getting free shipping. In this case, you'd have to increase threshold by multiple products to ensure that your delta on bottom line margin is met.
NOW, time to start testing!
The most important metric you want to look at while conducting this test is the EPC (earnings per click). This is because it encapsulates the other two relevant metrics (AOV and CR).
The most important metric you want to look at while conducting this test is the EPC (earnings per click). This is because it encapsulates the other two relevant metrics (AOV and CR).
In order to get the best EPC possible, you can test the price of free shipping thresholds as a % increase, or if you are aware of specific products customers are adding to their cart, can a bit below the average cost of those items to your free shipping threshold in increments
A great way to reinforce your free shipping threshold is to have dynamic reminders along the on-site customer journey that display how much more $ a customer needs to spend in order to get free shipping.
Here is a simple app that accomplishes this: https://apps.shopify.com/free-shipping-bar
Here is a simple app that accomplishes this: https://apps.shopify.com/free-shipping-bar
To fully take advantage of the opportunity you currently have in getting customers to make an impulse buy, it is recommended to offer customized upsells where these buying decisions are happening (cart page and checkout page)
For this, I recommend REBUY https://apps.shopify.com/rebuy
For this, I recommend REBUY https://apps.shopify.com/rebuy
TEST #3: BUNDLES:
Bundling products is one of the easiest ways to increase AOV. Although it sounds like common sense, MANY brands (large and small) still do not implement this. Customers want to be told what to buy, and do it in the fastest way possible with as little thought
Bundling products is one of the easiest ways to increase AOV. Although it sounds like common sense, MANY brands (large and small) still do not implement this. Customers want to be told what to buy, and do it in the fastest way possible with as little thought
If you are leveraging sales pages in your media buying process, having bundles as an additional option will increase your AOV.
Bundles are also great for specific promotions / discounts that are relevant to the time of year if applicable.
Bundles are also great for specific promotions / discounts that are relevant to the time of year if applicable.
TEST #4 : SKIPPING THE CART PAGE
This is especially relevant for brands that do not have multiple skus per item (colors, sizes, etc) in which they would have to alter their order on the cart page.
I have seen this increase conversion rate by 10-20% on multiple occasions
This is especially relevant for brands that do not have multiple skus per item (colors, sizes, etc) in which they would have to alter their order on the cart page.
I have seen this increase conversion rate by 10-20% on multiple occasions
TEST #5: Here are a few additional great ways to increase AOV 
-In checkout upsells
If you have a non consumable product, I would HIGHLY recommend to implement a lifetime product warrantee in checkout. You can split test pricing from 5-10% of the AOV. This is 100% margin!

-In checkout upsells
If you have a non consumable product, I would HIGHLY recommend to implement a lifetime product warrantee in checkout. You can split test pricing from 5-10% of the AOV. This is 100% margin!
If you are a consumable product, clearly you can't offer a product warrantee.
In this instance, would recommend to use shipping insurance on the checkout page as an additional upsell. I have seen take rates range from 20-50% on this upsell!!! (need @ShopifyPlus to do this)
In this instance, would recommend to use shipping insurance on the checkout page as an additional upsell. I have seen take rates range from 20-50% on this upsell!!! (need @ShopifyPlus to do this)
For both shipping insurance and lifetime product warrantee, the beauty is that they are 100% margin upsells. Moreover, the percent of customers who actually file a claim is consistently under 1% from my experience. These should be a no brainer for EVERY DTC BRAND!
Additional low hanging fruit to increase AOV 
-in cart upsells
-in checkout upsells
-post purchase upsells
-spend more, save more

-in cart upsells
-in checkout upsells
-post purchase upsells
-spend more, save more
Spend more, save more is a low hanging fruit opportunity I do not see many brands apply.
It is fairly straightforward, and you can even incentivize with gifts at specific spend tiers.
Here is a visual representation
I have seen this increase AOV up to 25% on various brands
It is fairly straightforward, and you can even incentivize with gifts at specific spend tiers.
Here is a visual representation

I have seen this increase AOV up to 25% on various brands
TEST #6: SUBSCRIBE AND SAVE:
Straightforward, but not implemented on MANY stores both large and small.
By simply adding this button to your store (where relevant. typically consumable products) you are one step closer to building a sustainable business, that compounds growth.
Straightforward, but not implemented on MANY stores both large and small.
By simply adding this button to your store (where relevant. typically consumable products) you are one step closer to building a sustainable business, that compounds growth.
We recommend @ReChargePayment for this
They make it extremely easy to setup, and provide amazing analytics that allow you to make meaningful decisions.
I recommend split testing the % off you provide customers to opt in to the subscription.
They make it extremely easy to setup, and provide amazing analytics that allow you to make meaningful decisions.
I recommend split testing the % off you provide customers to opt in to the subscription.
General things that I have noticed (not applicable to everything) is that when you make the discount to opt in too high, churn tends to be significantly higher as well.
Test this, and pay close attention to churn metrics in your analysis.
Test this, and pay close attention to churn metrics in your analysis.