If you’re a Shopify seller looking to elevate your average order value (AOV) and potentially increase your profits, the idea of incorporating drop-shipped products into your premium brand might have crossed your mind. 

In this blog post, we’ll delve into whether this is a wise strategy and what crucial considerations you should keep in mind before taking the plunge.

What is the Average Order Value?

AOV stands for “Average Order Value.” 

It is a key metric in e-commerce that represents the average amount of money customers spend on each order when making a purchase from an online store. 

To calculate the AOV, you simply divide the total revenue generated by the number of orders.

Why Average Order Value Matters

In the world of e-commerce, increasing your AOV is a strategic move to enhance your revenue quickly. 

A higher AOV means you’re making more money from each customer, reducing the pressure to acquire new customers constantly. 

It’s a goal many online businesses strive to achieve, but the path to get there can be diverse.

The Temptation of Dropshipping

Imagine this scenario: you have a thriving Shopify store where you sell your own premium products. 

However, your AOV falls short of your desired target. 

You’re eager to find a way to add an extra $20 or $30 during the checkout process, making a noticeable difference in your revenue. 

The thought of incorporating drop-shipped products seems like a quick and straightforward solution.

The Reality of Dropshipping

In a recent conversation with a brand we support, a crucial question emerged. 

This brand specializes in selling supplements through its Shopify channel. 

Despite a high order volume, their AOV remained below $50. 

To tackle this challenge, they contemplated adding drop-shipped products to upsell during the checkout process.

Brand Identity and Perception

However, it’s essential to consider the implications of such a move. 

If you have meticulously built a premium brand with custom formulations and a unique brand positioning, introducing third-party products without your branding can blur the lines. 

It raises the question: What sets your brand apart from other dropshippers or white-label supplement companies in the same space?

Why You Should Protect Your Brand Reputation

The risk is that incorporating generic products can diminish the perception of your brand’s premium status. 

It might harm your long-term goals and affect how your brand is perceived by customers. 

Maintaining brand integrity and uniqueness is paramount, especially when you’ve positioned yourself as a premium player in your niche.

In Conclusion

While adding drop-shipped products may seem like the quickest solution to increase AOV, it might not be the best choice if you’re aiming to create a standout, premium brand. 

Ultimately, the decision should align with your brand’s unique identity and long-term goals. 

Consider whether it strengthens your brand or dilutes its value in the eyes of your customers.

We work with online sellers to build a million-dollar D2C channel in 12 months or less on Shopify without relying on Amazon.
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