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Common Questions
Frequently Asked Questions
What is AOV and why does it matter?
AOV (Average Order Value) is total revenue divided by total orders. Raising AOV is one of the highest-ROI growth levers because it doesn't require more traffic or more customers - it spreads your fixed costs (ad spend per order, fulfillment) over more revenue per transaction.
What's a good AOV for ecommerce?
AOV varies enormously by category. Beauty and consumables often run $35-65. Apparel $60-120. Home goods $75-200. Premium and luxury $150+. What matters more than the absolute number is how AOV compares to your CAC. A healthy ratio is 2-3x AOV:CAC.
Why does upsell margin matter more than take rate?
A 30% take rate on a 20%-margin upsell adds less profit than a 15% take rate on a 50%-margin upsell. Take rate is a vanity metric on its own; profit-weighted take rate is the real measure. Always test upsell strategies with margin in mind.
Do post-purchase upsells hurt conversion?
No. Post-purchase upsells (after checkout completion) cannot lower conversion because they only fire after the order is placed. This is why they are the highest-ROI upsell type. Pre-purchase upsells (cart sliders, upsell modals) CAN hurt conversion if they feel pushy.
What about the cost of the upsell technology?
Most upsell apps cost $30-200/month. At the volumes shown in this calculator, even a $200/mo app pays back in days if take rate is even 5%. For very low-volume stores (under 100 orders/month), the app cost can exceed the upsell lift - run the math on your specific numbers.
Should I use percentage discounts on upsells?
Yes, but carefully. A 10% discount on a $25 upsell increases take rate by ~30-50% but reduces margin by 10 percentage points. Whether that's net-positive depends on your starting margin: profitable above 35% upsell margin, marginal at 25%, losing below 20%. The default is no discount on post-purchase, light discount on cart.