E-commerce economics: order value, bundles and repeat purchase

Intermediate's ceiling counts only the first order. Test every AOV tactic against conversion rate, and add repeat purchases by monthly cohort only once stable.

In this chapter

• Using "contribution margin per visitor" to judge whether a change meant to raise AOV made or lost money, rather than only checking whether AOV went up
• Five approaches (free-shipping threshold, bundles, add-on deals, installments, price increases) and, for each one, which part of your cost ceiling it changes, which number to watch and when to roll back
• Building a simple repeat purchase table with monthly cohorts, working out how much more you can lose on a first purchase, and when you can't calculate it that way yet
• The minimum version of post-delivery feedback emails, referral codes and emails to non-buyers, without breaking the rules on endorsements
• How to tier your repeat-customer lists and feed them back into audiences, and why group-buy and wholesale prices can only go one-to-one
• Three payment details for digital products and subscriptions, and why ROAS isn't the only thing to look at when choosing between new and existing customers