Every order placed on an ecommerce site generates expenses for order processing, packaging, and shipping. But when an order consists of multiple units, those expenses make less of an impact on the seller because the added price margin of those additional units increases overall profit. Use these ideas to entice sellers into buying additional units – allowing you to offset shipping and fulfillment expenses and maintain competitive pricing.
Minimum Order Discounts
You can use other coupons or discounts in place of free shipping, but according to a survey from UPSPulse of the Online Shopper, 93% of online shoppers are willing to take action in order to qualify for free shipping – so it’s perhaps the most effective incentive (it’s also more directly related to the costs you’re trying to offset). Amazon.com’s famously successful “free shipping on orders more than $35” is a great example. If your ecommerce site sells lots of low-margin items, this type of strategy may work especially well because customers will have an easier time adding units without overshooting the minimum order requirement too much.
Add-ons & Upsells
Use personalization algorithms to offer additional units based on items that customers have just purchased, or purchased over time. If customer data is unavailable, the next best thing is to offer upsells based on seasonality, since seasonal items are more likely to have universal appeal. This strategy also works very well with minimum orders – adding a “suggested items” section to your shopping cart page can help customers find products they can add to reach the minimum order size.
Instead of asking your customers to add extra items to their carts, do it for them by bundling units together. Your ability to assemble product kits that appeal to customers will depend on the products you have to work with, but this is a common strategy for boosting multi-unit sales of nutritional supplements or other consumable type products.