Expand product catalog within focused category to increase AOV and unit economics
Instead of launching unrelated products, expand within a single category (bathroom products, kitchen tools, etc.) with multiple low-priced items. Customers who buy one product often buy multiple items in the same category, dramatically increasing average order value while decreasing per-order shipping and processing costs. This strategy improves unit economics without requiring more customers.
When to use
After achieving product-market fit with your first product and identifying a clear product category that resonates with your audience. Best for e-commerce brands selling consumable or complementary physical products.
Don't do this
Launching random products across unrelated categories, which confuses your brand identity and prevents customers from making multiple purchases. Or launching one expensive product instead of multiple affordable ones, which limits purchase frequency.
1 Founder Who Did This
Expanded from tooth powder to 6+ hygiene products all under $20 (tallow balm, deodorant, mouthwash, hair oil). Customers buy 5-6 products together increasing AOV significantly.