Increasing AOV for a Beauty & Cosmetics Brand
Complementary Buy X Get Y offers, a skincare spend reward and a free shipping threshold for single-item beauty orders, with the math to check whether each one pays
When most beauty orders contain one hero product, discount the complementary add-on rather than the hero. The scenario uses four campaigns of three types: two Buy X Get Y add-on offers at 30%, a 10% skincare spend reward at $150, and a free shipping threshold. Each is checked against break-even, for example about 39% incremental redemptions for the serum offer.
At a glance
- Challenge
- Most orders contain one hero product. Sitewide discounts would hurt premium positioning and reward single-item orders too.
- Approach
- Four campaigns of three types: two Buy X Get Y offers on complementary add-ons, a Product Spend Discount on skincare, and a free shipping threshold, each tested against gross profit.
- Discount Prime campaign types used
- Buy X Get Y (BOGO)Product Spend DiscountFree Shipping
Scenario-based case study: the merchant is fictional and modeled on patterns across Discount Prime stores. Prices, costs and outcome figures are illustrative assumptions for teaching, not measured results from a real store.
Short Answer
When most beauty orders contain one hero product, the most targeted lever is usually a discount on the complementary product, not on the product the customer already came for. This scenario uses four campaigns of three types:
- Buy X Get Y: buy a premium serum, get 30% off one moisturizer.
- Buy X Get Y: buy a foundation, get 30% off one setting spray or makeup sponge.
- Product Spend Discount: 10% off skincare items when skincare spend reaches $150.
- Free Shipping: free standard shipping above a threshold set just above the typical order.
Each one has a cost even when it changes nothing, so the article shows how to check whether it pays. The brand is a fictional Shopify skincare and makeup store; all numbers are illustrative assumptions, not results.
Fits / Does Not Fit
| This architecture fits when | Consider something else when |
|---|---|
| Most orders contain one product and clear complementary pairs exist (serum and moisturizer, foundation and setting spray) | Customers already buy full routines; a discount would mostly subsidize existing behavior |
| Gross margins leave room for a 30% discount on the add-on | Add-on products have thin margins |
| You can show the reward picker on the storefront (app embed enabled) | You cannot change the storefront at all |
Scenario and Data You Need
The merchant sells cleansers, serums, moisturizers, sunscreen, foundation, concealer and accessories, and wants to stay premium (no sitewide markdowns).
Illustrative assumptions (replace with your own):
| Input | Value |
|---|---|
| Vitamin C serum | $58, product cost $14 |
| Moisturizer | $42, product cost $10 |
| Typical order value | Most orders between $45 and $70, one item |
| Shipping cost to you | About $7 per standard order |
Before choosing thresholds, export orders and look at: the distribution of order values (not only the average), how many serum orders already include a moisturizer at full price, and shipping cost per order.
The Options Compared
| Option | Fits when | Does not fit when | Cost behavior |
|---|---|---|---|
| Buy X Get Y (buy serum, add-on discounted) | Clear complementary pairs exist | Pairs are weak or the add-on is low margin | Paid on every redemption, including customers who would have bought the add-on anyway |
| Product Spend Discount (spend $150 on skincare, 10% off) | Skincare baskets cluster just below a reachable threshold | Most baskets are far below or already above it | Paid on every qualifying basket, including those already above the threshold |
| Tiered Spend Discount (order-level tiers) | You run storewide events | You want to steer toward specific categories | Applies to the whole order |
| Flat Product Discount (15% on skincare) | You want a simple seasonal price cut | The goal is a larger basket: single-item orders get it too | Paid on every unit sold |
| Tiered Quantity Discount | Customers buy multiples of the same or similar items (sheet masks, cotton pads, travel minis, lip shades) | Customers buy one of each product type | Paid on every unit above the tier |
| Free Shipping threshold | Shipping cost is a visible reason for abandoning carts | Most orders are already above the threshold | Shipping cost on every qualifying order |
| Native Shopify discounts | One simple automatic offer is enough (Shopify supports Buy X Get Y, amount-off and free shipping natively) | You need a reward picker, several coordinated offers, or campaign analytics | Same economics |
Quantity discounts are not wrong for cosmetics in general. They are a poor fit for this goal (adding a different product type to a single-item order) but can work well for replenishable items customers already buy in multiples.
Why These Numbers: Worked Examples
Buy X Get Y at 30%. Gross profit = price minus product cost (fees, shipping and returns excluded).
| Order | Revenue | Gross profit |
|---|---|---|
| Serum only | $58.00 | $44.00 |
| Serum + moisturizer at 30% off | $87.40 | $63.40 |
| Serum + moisturizer at full price | $100.00 | $76.00 |
If the moisturizer is added because of the offer, gross profit rises by $19.40. If the customer would have bought it anyway, the offer costs $12.60. The offer pays when more than $12.60 ÷ ($19.40 + $12.60) ≈ 39% of redemptions are incremental. To adapt: use your own prices and costs; a higher discount or a pricier add-on raises the required share.
Product Spend at $150 and 10%. A customer at $140 who adds a $42 moisturizer reaches $182 and gets $18.20 off. A customer already at $160 gets $16.00 off for doing nothing different. Set the threshold where many baskets sit just below it, and check how many baskets are already above it.
Free shipping. Each qualifying order costs you its shipping cost (about $7 here). A threshold just above the most common order values asks for one more item; a threshold below most orders mostly gives shipping away.
The Four Campaigns
| # | Campaign | Key settings | Plan |
|---|---|---|---|
| 1 | Buy X Get Y | Buy 1 from Premium Serums; reward 1 item from Moisturizers at 30% off; once per order | Prime |
| 2 | Buy X Get Y | Buy 1 from Foundations; reward 1 setting spray or makeup sponge (specific products) at 30% off; once per order | Prime |
| 3 | Product Spend Discount | Skincare collection; 10% off when skincare items total $150 or more | Starter |
| 4 | Free Shipping / Cart Incentives | Free standard shipping above a threshold set just above the typical order value | Prime |
Plans are listed as shown in the app's plan seed; check the in-app Plans page before you rely on them.
What the Customer Sees and How the Offers Interact
- The reward must be chosen in the pop-up. When the reward comes from another collection or from specific products, Discount Prime discounts only a reward the customer picked in the Buy X Get Y pop-up (or its floating button). A moisturizer added from its own product page is charged at full price. Turn on the app embed and the pop-up, and do not write storefront copy such as "add any moisturizer" without pointing to the picker.
- Product page messaging is yours. A line like "Pair it with a moisturizer: 30% off when you choose it in your cart" is theme content you add; the pop-up appears once the serum is in the cart.
- Free shipping progress can be shown with the shipping progress bar widget. Discount Prime's discount progress bar is for wholesale campaigns, so state the $150 skincare threshold in your own copy.
- Discounts can compound. There is no priority setting between campaigns. With the default Buy X Get Y order ("after other discounts"), if a moisturizer also receives the 10% skincare discount, the 30% applies to the reduced price: 10% then 30% is 37% off in total, not 40%. Test a cart that triggers both and decide whether that is acceptable.
- Thresholds and discounts. Product Spend counts the skincare line amounts before discounts. Whether the free shipping threshold counts before or after discounts follows the shipping campaign's combination setting; test both cases.
- Losing eligibility. If the customer removes the serum, the moisturizer goes back to full price at checkout, but the pop-up does not remove it from the cart.
Pre-Launch Tests
| Test input | Expected result |
|---|---|
| Serum only | Pop-up offers moisturizers; no discount yet |
| Serum + moisturizer chosen in the pop-up | 30% off the moisturizer |
| Serum + moisturizer added from its product page | Moisturizer at full price |
| Skincare at $149 vs $150 | No 10% vs 10% on skincare items |
| Serum + moisturizer with $150+ skincare | Check the compounded discount on the moisturizer |
| Order just below and just above the shipping threshold | Shipping charged vs free |
Measurement
- Primary metric: share of serum orders that include a moisturizer (and foundation orders with a setting spray or sponge).
- Guardrail: gross profit per order and per customer, not only average order value; a higher AOV with lower gross profit means the discounts mostly go to existing behavior.
- Baseline: the same metrics before launch; ideally hold out one pair (for example, run campaign 2 a few weeks later) to compare.
- Confounders: product launches, seasonal gifting, influencer traffic.
- Decide: keep a pair if its incremental share clears the break-even (about 39% in the example); lower the discount or change the add-on if not. Raise or lower the spend and shipping thresholds based on how many orders sit just below them. Without a holdout, treat before/after changes as directional.
Next Steps
Once the pairs are validated, consider a Product Bundle for a complete routine, purchase-history eligibility for repeat customers, or scheduled campaigns for seasonal gifting.
Frequently asked questions
How can a beauty brand increase average order value without discounting everything?
Discount the complementary product instead of the product customers already came for. For example: buy a serum, get 30% off one moisturizer; a spend reward on skincare only; and a free shipping threshold just above the most common order values. Each offer is also paid to customers who would have bought anyway, so measure gross profit per order, not only AOV.
Is a buy-one-get-a-discount offer on a moisturizer profitable?
Only if enough redemptions are incremental. With a $58 serum (cost $14) and a $42 moisturizer (cost $10) at 30% off, an added moisturizer adds $19.40 of gross profit, while a customer who would have bought it anyway costs $12.60. The offer breaks even when about 39% of redemptions are incremental. Plug in your own prices and costs.
Why doesn't my Buy X Get Y discount apply to the reward product?
In Discount Prime, when the reward comes from another collection or from specific products, only a reward the customer chose in the Buy X Get Y pop-up or floating button is discounted. The same product added from its own product page is charged at full price. Enable the app embed and the pop-up, and point your storefront copy to the picker.
Do discounts stack if a product is both a BOGO reward and in a spend discount?
They can. With Discount Prime's default Buy X Get Y order (after other discounts), the reward discount applies to the already reduced price, so 10% followed by 30% gives 37% off in total, not 40%. There is no priority setting between campaigns, so test a cart that triggers both before launch.
Should I use a tiered quantity discount for cosmetics?
It depends on what customers buy. For getting a single-item buyer to add a different product type, a complementary Buy X Get Y offer fits better. For items customers already buy in multiples, such as sheet masks, cotton pads, travel minis or several lip shades, a tiered quantity discount can work well.
Where should I set my free shipping threshold?
Look at the distribution of order values, not just the average. A threshold just above the most common order values asks for one more item; one below most orders mostly gives shipping away. Each qualifying order costs you its shipping fee, and Discount Prime has no profit protection on shipping campaigns.
Go deeper
Run this architecture in your store
Every campaign type in this case study is included in Discount Prime, with profit analytics to verify the margin impact.