A Framework for Increasing Retention with Product Bundles
This article shows you how to go beyond soft metrics and start tracking and improving retention through smarter bundling.
Tina Donati
May 06, 2025 · 7 min
If you want to build a more sustainable, profitable business, it’s crucial to think beyond discounts.
Tina Donati
May 06, 2025 · 7 min
One of the most common mistakes Shopify merchants make is relying too heavily on discounting to drive sales. While discounts can create short-term spikes in revenue, they often come at the cost of long-term profitability and customer expectations. Over time, frequent discounts train customers to hold off on purchases until the next sale.
If you want to build a more sustainable, profitable business, it’s crucial to think beyond discounts. A better approach is to maximize your Average Order Value (AOV) and create a shopping experience that encourages customers to buy more—because they see more value.
In this article, we’ll walk through practical, proven strategies to help you increase AOV on Shopify while maintaining a premium customer experience.
Or, if you prefer to listen, we did a deep dive on increasing your AOV on our YouTube channel here:
While increasing your conversion rate is essential, it only tells part of the story. To maximize profitability, you also need to focus on Revenue Per Session—a combination of conversion rate and Average Order Value.
If you're generating a high number of conversions but customers are only spending a few dollars each time, your profitability will suffer. For example, selling a $5 product while paying $6 per click on ads is a fast track to negative margins, no matter how high your conversion rate is.
Average Order Value (AOV) measures the average amount a customer spends each time they place an order on your site.
Formula: AOV = Total Revenue ÷ Number of Orders
When you raise your AOV, you increase revenue without having to acquire new traffic, which is often the most expensive and unpredictable part of growing an e-commerce business.
Maximizing AOV allows you to get more value from every visitor and improve the sustainability of your Shopify store.
The real art of boosting AOV is balancing two things:
The strategies that work best are rooted in customer psychology, including:
Let’s dive into some of the most effective tactics.
Product bundling is one of the most reliable strategies to increase average order value on Shopify.
Bundles make shopping easier for customers, allow them to discover complementary products, and often create a stronger emotional connection to the purchase.
There are several types of Shopify bundles to consider:
Example: Check out how Revel Nail leveraged personalization to create custom nail polish sets that reflect the shopper's taste (case study here). This bundle not only meets individual preferences but also makes it feel like the customer is in control of their purchase.
With Simple Bundles, offering build-your-own bundles is super easy. In most cases, brands are limited by Shopify’s 100-variant limit, which makes it difficult to let customers personalize their bundle offers too much. Our Infinite Options feature allows you to create an unlimited number of combinations, meaning you can give your customers as many options as you want.
Example: Kerotin’s holiday bundles are a great example of curated collections that simplify holiday shopping. While the products themselves aren’t specifically tied to BFCM, the landing page leans into the BFCM exclusivity theme, seamlessly tying into the holiday spirit.
Example: Glow Recipe, a skincare brand found in Sephora, Ulta Beauty, and more, offers a “Dry Skin Routine Kit,” featuring a cleanser, toner, moisturizer, and serum to to hydrate, plump and soothe skin during the harsh winter months.
Key considerations for effective bundling:
By creating thoughtful bundles, you can increase cart size while making the shopping experience smoother and more rewarding.
Free shipping has evolved from a nice perk into a customer expectation. However, you can still use it strategically to increase AOV.
Setting a free shipping threshold just above your current AOV encourages customers to add additional items to meet the minimum.
For example, if free shipping starts at $50 and a customer’s cart is at $45, they are far more likely to add another item than to abandon their cart.
So how can you promote free shipping thresholds effectively? Try
Bundles can also help customers hit the free shipping mark more quickly, further increasing their perceived value. This strategy improves both AOV and conversion rates by making the incentive of free shipping feel like an achievable win for the customer.
Upselling is an essential tactic for any brand focused on how to maximize AOV on Shopify. However, upsells need to feel helpful—not pushy.
Effective upselling focuses on relevance and timing. Here’s how to apply upsells strategically throughout the customer journey:
One approach that brands have used successfully is using live chat-based upselling. For example, customer service tools like Gorgias allow support teams to suggest products to customers based on browsing behavior—offering an upsell in a way that feels natural and supportive.
You can see how Pet Honesty does this to promote a bundle deal on specific product pages:
The most important rule: upsells should feel like they’re helping customers complete their order, not adding random pressure to buy more.
Encouraging customers to buy in larger quantities is a tried-and-true method for increasing average order value.
There are two primary approaches:
Womads did this during Black Friday, showcasing the tiered discounts in its email campaigns:
Incentivizing larger purchases works best when the benefits are highly visible throughout the shopping experience. Display progress bars or checkout messages showing customers how close they are to the next reward level.
For consumable or repeat-purchase products (like supplements, skincare, or packaged foods), highlight the practical benefits of buying in bulk, such as reduced shipping costs or longer-lasting supply.
Creating a dedicated "Stock Up and Save" section on your Shopify store can make it even easier for customers to find and take advantage of larger purchase incentives. Check out this example from Innosupps!
Building a sustainable, profitable Shopify store isn’t just about driving more traffic or offering more discounts. It’s about increasing the value of every single transaction.
To summarize:
By focusing on increasing AOV alongside conversion rates, you can create a more resilient, profitable business model—one that delights your customers while strengthening your bottom line.
If you want more tips on increasing AOV, you can grab our AOV ebook here. Packed with tips from experts in the Shopify space.