Funnel course for agencies, lesson 4

Cart and AOV work across stores

Lesson 4 of Funnel testing for agencies: thresholds, add-ons and bundles fitted to each client's margins, judged on profit per visitor.

Benchmyrk teamPublished 7 min read

In short

Learning goal: by the end of this lesson you can choose cart tests that fit each client's economics, set up profit per visitor with the client's cost data, and plan for the extra traffic a revenue or profit goal needs.

Who this is for: agency strategists asked by several clients to "raise average order value".

"Raise AOV" is a frequent brief for agencies, and one of the easiest to deliver badly. Average order value can rise while the store makes less money: fewer people buy, or the add-on that raised the basket is sold at a discount that eats the margin. The goal is more profit per visitor, and AOV is one way to get there.

What to measure at this step

What to measure at this step
MetricDefinitionPrimary goal or diagnostic
Profit per visitorGross profit from visitors in the arm ÷ those visitorsPrimary, when product costs are known
Revenue per visitor (RPV)Revenue ÷ visitors (explainer)Primary when costs aren't complete
Average order value (AOV)Revenue ÷ ordersSecondary: explains the result
Checkout-start rateShare of cart visitors who start checkoutDiagnostic
Attach rateShare of orders that include the add-on or bundleDiagnostic
Threshold reachShare of carts at or above a free-shipping thresholdDiagnostic
Checkout completionShare of checkouts that become ordersGuardrail

Step 1: Fit the test to the client's economics

The same cart test is a different bet for each client. Before choosing one, collect:

  • AOV and its spread. How much order values vary. A store where most orders are one $70 item behaves differently from one where orders range from $20 to $500.
  • Gross margin by product. The add-on with the best attach rate is useless if its margin is thin.
  • Shipping cost per order, for threshold tests. See part 6 of the agency BFCM series for the break-even.
  • Existing discounts, which may combine with anything you test.

Then match the test to the client:

Step 1: Fit the test to the client's economics
Client economicsGood first cart test
Low AOV, decent margin, shipping eats profitA free-shipping threshold just above the average order
One hero product, accessories with high marginA cart add-on of one accessory
Products often bought togetherA 2 to 3 product bundle, at full price first
High AOV, considered purchaseLeave the cart alone; test reassurance in checkout instead

Step 2: Get product costs from the client

Profit per visitor is only as good as the cost data behind it. Shopify itself says profit is reported "only for products and variants that had cost recorded at the time they were sold" (Shopify Help Center, Profit reports, read October 12, 2026). Ask each client to:

  1. Fill in the cost per item for every product in the test, before launch.
  2. Confirm their payment processing fees.
  3. Give you a shipping cost per order, or per order band.

Costs added after an order don't apply to that order. Get them in before the test starts.

Step 3: Plan for revenue goals needing more traffic

Revenue and profit vary much more from visitor to visitor than a yes-or-no conversion, because order values vary. That makes revenue goals slower to read.

ExampleExample

(an illustrative client, not a real store)

The client's cart test sees 5,000 visitors a day, split evenly between two arms. 3% of them buy, the average order is $70 and order values have a standard deviation of $50. At 95% confidence and 80% power, to detect a 10% change:

Example
Primary goalVisitors per armDays
Conversion rate53,21122 days
Revenue per visitor77,45331 days

Judging the test on revenue per visitor takes about 9 more days than judging it on conversion. It's still the right goal, because a cart test that raises order value can lower conversion, and only revenue or profit per visitor shows which effect won. Plan the extra days in the client's calendar from the start.

The revenue sample size uses the same formula as the conversion one, with the variance of revenue per visitor in place of the variance of a conversion. The sample size calculator handles conversion goals; for revenue, use the client's order-value spread and allow for more time.

Step 4: Decide on large orders before launch

One wholesale-sized order can decide a revenue test on its own. Decide before launch whether to cap large orders, at the same level for every arm, and write it in the test plan. Deciding after you've seen which arm got the big order is choosing the result.

Step 5: Read it honestly

Judge on profit per visitor if the client's costs cover nearly all the revenue in the test, otherwise on revenue per visitor. Look at AOV, attach rate and checkout starts only to explain the result. Refunds reduce credited revenue, so don't call a cart test the day it ends if the client's refund window is long.

Common problems

  • AOV as the primary goal. It can rise while revenue per visitor falls.
  • Discounted bundles judged on revenue. The discount is a cost; profit per visitor shows it.
  • Missing product costs. No complete costs, no profit verdict.
  • Two threshold tests at once. Only one shipping discount applies per order; run one at a time.
  • Deciding the cap after the fact. Choose it before launch.

Test ideas, with the mechanism behind each

Test ideas, with the mechanism behind each
IdeaMechanismJudge on
Free shipping from just above AOVGives a reason to add one more itemProfit per visitor
One accessory offered in the cartSmall, relevant addition at the moment of buyingProfit per visitor; attach rate as a diagnostic
A bundle at full priceConvenience without a margin costRPV; AOV as a diagnostic
A progress bar toward the thresholdMakes the threshold visibleProfit per visitor; threshold reach as a diagnostic

A 10-minute exercise on your own client

  1. Pull the client's last 60 days of orders: AOV, the spread of order values, and the share above $75 or whatever threshold you'd test.
  2. Check how many products in the cart's top 20 have a cost per item filled in.
  3. Pick the row in the Step 1 table that fits the client.
  4. Write the test, the primary goal and the large-order rule.

Do it in Benchmyrk

Check your understanding

  1. AOV rose and revenue per visitor fell. What happened? Fewer visitors bought. The bigger baskets didn't make up for the lost orders. The test lost on its primary goal.
  2. Only 60% of the revenue in the test has product costs. What do you judge it on? Revenue per visitor. Profit per visitor needs costs on nearly all the revenue.
  3. The largest order in the test was many times the average and landed in the variant. Can you cap it now? No. A cap has to be chosen before launch and applied to every arm. Report the result with and without it, and say which was planned.

Sources

  1. Shopify Help Center, Profit reports, read 12 October 2026

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