The cosmetic brand sold products through multiple channels, including Shopify, ecommerce platforms, and quick commerce, but identified potential to increase revenue share specifically on Shopify. Their main challenges included:
1. Potential to Increase AOV
With an average selling price of approximately ₹500 per product, the DTC cosmetic brand estimated that basket sizes could be increased to upwards of ₹1000, based on the demographic profile and transaction history of their loyal customer base.
2. Promotion of Under-Discovered Categories
Their product catalog includes lipsticks, glosses, highlighters, and lip liners.
- Popular products overshadowed other quality products.
- The cosmetic DTC brand aimed to boost visibility and trial for less popular categories and their new skincare range.
3. Optimize Shipping Costs
The cosmetic brand offered free shipping on its Shopify store.
- While the shipping of individual products remained profitable, given their weight, the economic advantages of free shipping became more pronounced with increased order values.
- Shipping cost is largely fixed per package. To lower per-unit shipping costs & bring in packaging efficiencies, the brand needed to sell more products per order.
4. Inflexibility with Conventional Fixed Bundles
The brand zeroed in on fixed product bundles as a solution to address the above challenges. They experimented with bundles natively on Shopify.
- However, pre-bundled products as an SKU interfered with inventory management. Plus, they were inflexible.
- E.g., if a pre-curated bundle had one lipstick and one lip gloss, the brand would need to create 100s of SKUs for each color combination.
.webp)
.svg)
.svg)
.svg)
.svg)
.svg)
