AOV & upsells

Discount timing, bundles, multi-unit offers, free-shipping thresholds and decoy prices: what published studies say about order value and margin, and where they stop.

18.7%more volume needed just to offset a 5% price cut, for McKinsey’s average S&P 1500 company

Consulting firmMcKinsey, “The power of pricing” (opens the source)Sources

Discount timing and depth: what McKinsey, Bain and Deloitte found

A sale is a price cut with a depth, a start and an end. Consulting-firm research on large retailers shows why all three are worth getting right.

Read the note: Discount timing and depth: what McKinsey, Bain and Deloitte found

12–20%of e-commerce revenue can go on fulfilment

Consulting firmMcKinsey, “Growth and profitability in e-commerce” (opens the source)Sources

Bundles and basket size: what the research says about letting shoppers choose

Fulfilment is a large share of e-commerce revenue, so bigger baskets matter. Peer-reviewed and consulting research on bundles gives a hopeful sign and a clear warning.

Read the note: Bundles and basket size: what the research says about letting shoppers choose

40%chose “extra costs too high”, the top reason for leaving a cart after “just browsing”

Independent researchBaymard, “Cart Abandonment Rate Statistics” (opens the source)Sources

Free-shipping thresholds and order value: what Baymard, McKinsey and the journals found

The usual advice is to set the threshold above the typical basket. Four sources give a more careful picture of orders, order value and returns.

Read the note: Free-shipping thresholds and order value: what Baymard, McKinsey and the journals found

38studies put the decoy effect to the test

Peer-reviewedFrederick, Lee and Baskin, JMR (opens the source)3 min read

The decoy price: why the famous trick is shakier than it sounds

Pricing advice often tells store owners to add a “decoy” option so shoppers pick the bigger bundle. The research behind that advice is more limited than the guides suggest.

Read the note: The decoy price: why the famous trick is shakier than it sounds

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