FAE Beauty, sold their products through multiple channels i.e. Shopify, ecommerce platforms and quick commerce. However, they saw a potential of increasing their revenue share on Shopify. Here are the challenges they identified:
1. Potential to Increase AOV
FAE Beauty had deduced that there was scope to increase their AOV. Their average selling price of cosmetics was about ₹500 per product. Given the demographic profile of their loyal customer base and transaction history, the brand estimated there was potential to increase the basket price to upwards of ₹ 1000 on their Shopify store.
2. Promotion of Under-Discovered Categories
FAE Beauty’s product catalog consists of multiple categories. From lipsticks, and gloss to highlighters and lip liners.
- As is the challenge for any cosmetic & skincare brand, some products (Lip Whip) were relatively more popular than other equally great products in their catalog.
- FAE Beauty wanted to promote these under-discovered categories.
- The brand was also looking for ways to increase trials on their relatively new skincare range.
3. Optimize Shipping Costs
FAE Beauty offered free shipping to customers shopping from their Shopify website.
- 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, FAE Beauty needed to sell more products per order.
4. Inflexibility with Conventional Fixed Bundles
FAE Beauty 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.
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