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Are Shopify upsell and bundle apps worth it? How to measure their real profit

By the Shoply Apps team · · 5 min read

Average order value of orders with each sales app compared with regular orders

Key takeaways

  • An upsell, bundle or free-gift app is worth it only if orders that use it are bigger than your regular orders by enough to cover what the app costs.
  • Look at the average order value of orders with the app against orders without any sales app, not at the app's "revenue generated" number.
  • Discounts and free gifts are part of the app's cost: a 15% bundle discount or a free €8 product comes straight out of your margin.
  • Watch out for apps that overlap: two apps on the same order both claim it, and stacked discounts can turn a profitable order into a loss.
  • If an app's orders are smaller than your regular orders over 30 and 60 days, it is costing you money. Cancel it or change its offer.

Upsell, cross-sell, bundle and free-gift apps all promise the same thing: bigger orders. Many deliver. Some quietly don't, because the discount they give away is bigger than the extra they bring in, or because they just take credit for orders that would have happened anyway. Here is how to tell which kind you have, using only your own Shopify orders.

What upsell and bundle apps are supposed to do

All of these apps try to raise your average order value (AOV): the total of your sales divided by the number of orders.

Each one works only if shoppers end up spending more than they would have without it, and the extra profit is bigger than the discount, the gift and the app's price.

How to tell if an upsell app is worth it

Compare orders that used the app with your regular orders: the ones that used no sales app at all. If orders with the app are bigger, that difference is what the app adds.

Extra per order = App's average order − Regular average order
Extra profit = Extra per order × App's orders × Your margin

Then subtract everything the app costs you over the same period: its monthly price, any percentage it takes from sales, and any free products it gives away. If what's left is above zero, the app pays for itself. Our guide to calculating the ROI of your Shopify apps walks through every step with a worked example.

A quick way to read the result:

What you seeWhat it meansWhat to do
App's orders are clearly bigger, every periodThe app adds real valueKeep it
Bigger, but only by a littleIt may just cover its costReview the offer or the discount
Bigger, but on very few ordersToo early to tell, could be chanceGive it more time
Same size or smaller than regular ordersThe app costs money and adds nothingCancel it, or change what it offers

The hidden costs: discounts, free gifts and fees

The app's monthly price is the cost everyone sees. The bigger costs often hide inside the orders themselves. Take a bundle of two €20 products (€24 cost) sold for €36 with a 10% bundle discount, against a single €20 product (€12 cost):

OrderCustomer paysProduct costProfit
Single product€20.00€12.00€8.00
Bundle of two, 10% off€36.00€24.00€12.00
Same bundle + free €8 gift (€4 cost)€36.00€28.00€8.00

The bundle adds €4 of profit per order, but add a free gift on top and the whole gain is gone, even though the order is still "€16 bigger". Then the app's monthly price comes out of whatever is left. This is why you should always measure profit, not order size alone.

When apps overlap and discounts stack

If you run more than one sales app, some orders will use two or more of them: a bundle plus a free gift, or an upsell plus a volume discount. Two things go wrong:

In your Shopify admin, open Discounts, select a discount and check its Combinations setting to decide which discounts may be used together. If two apps often meet on the same orders, ask whether you need both: they may be doing the same job.

How to make an underperforming app pay

Before cancelling an app that almost pays for itself, try changing what it offers:

  1. Lower the discount. Bundles often sell just as well at 5% off as at 15% off.
  2. Raise the free-gift threshold to a bit above your regular average order, so the gift actually pushes orders up.
  3. Offer products with better margins in upsells and bundles, not your cheapest items.
  4. Show fewer offers. Too many pop-ups can make shoppers leave rather than buy more.
  5. Measure again after 30 days, on the same basis, before deciding.

Doing this by hand for every app, every month, is slow. Shoply: Apps ROI Tracker does it for you: it finds every sales app in your store by itself, compares their orders with your regular orders, counts the discounts and free gifts as costs, shows where apps overlap and discounts stack, and tells you whether to keep, review or cancel each app, with what cancelling would save. It only reads your data and never changes your store.

FAQ

Do upsell apps really increase average order value?

Often, but not always. Compare the average order of orders that used the app with orders that used no sales app. If the app's orders are not bigger over 30 and 60 days, it isn't raising your average order value.

Should I count free gifts as a cost of the app?

Yes. A free product costs you what you paid for it, so it belongs in the app's cost along with its monthly price and any fee it takes on sales.

How long should I give a new sales app before judging it?

Give it enough time to collect a few dozen orders, usually two to six weeks depending on your sales. Results based on a handful of orders can swing either way by chance.

Find out which sales apps earn their keep

Shoply: Apps ROI Tracker shows each bundle, upsell and free-gift app's extra profit against its price, fees and free gifts, and tells you whether to keep, review or cancel it.

See Apps ROI Tracker