Ecommerce Store Optimization
May 10, 2023

7 Proven Ways to Increase Your E-commerce Store’s Average Order Value

Kamil Sattar

If you're already running an eCommerce store, then you’re probably already aware of the importance of Average Order Value (or AOV).

To put it simply, AOV is the average amount of money that customers spend with your store during each transaction.

It's also worth knowing that the average order value within the industry can vary drastically.

But the good news is, regardless of which one you’re in, there are effective ways to increase it.

All you need is to implement some proven tactics, and you'll be well on your way to boosting your AOV!

In this blog post, we're going to explore 7 foolproof strategies to bump up your average order value.

Plus, we'll also show you how to calculate the average order per customer formula and help you understand what exactly makes for a solid AOV.

So, let's dive in and see how you can boost your bottom line!

How to increase AOV in eCommerce using 7 proven strategies

Offer Upsells & Cross-sells

If a customer is already in the process of making a purchase on your site, then why not give them an opportunity to purchase additional related items?  

This is an age-old practice that has been proven effective time and again.

For eCommerce store owners, introducing upsells and cross-sells at the point of checkout is an easy way to give your customers a chance to buy more from you, which, in turn, increases your AOV.

Bundle Products Together

Product bundles are nothing new, but they’re still one of the best ways to increase AOV.

Think of bundling products like putting together a puzzle. Each piece is a product and when they’re combined, you create an irresistible offer.

Plus, it’s easy to do if you already have multiple complementary pieces of merchandise in your store.

Simply group them together as a bundle and watch your AOV soar!

Utilize Free Shipping Thresholds

For example, if the minimum purchase amount for free shipping is $50, a customer who only has $40 worth of items in their cart may add an extra $10 worth of items to qualify for free shipping.

Making shipping free for those customers who reach a certain purchase amount can obviously influence average order value simply because it psychologically incentivizes customers to add more items to their cart, creating a perception of added value.

Introduce Subscriptions

Check your credit card bills. Do you have any recurring payments? If you do, then chances are that the merchant has already hooked you up with a subscription.

Offering subscription options is another effective strategy to increase the average order value (AOV) in eCommerce because it creates predictable revenue, and more importantly, it encourages customers to purchase more items since they’ll be billed each month.

Maximize Your Product Descriptions

It goes without saying that product descriptions are an essential part of the customer experience in eCommerce.

A well-crafted and detailed description can help customers make an informed decision on whether to buy a product or not.

And if they’re convinced, it can lead them to spend more money. After all, the better the descriptions, the higher the chances that customers will purchase additional items from your store!

Implement Email Marketing The Right Way

Email is an effective way to reach customers, build relationships, and drive sales.

However, it can be tricky to execute correctly. The key is to make sure you’re sending out the right messages that are tailored to their interests and with offers that incentivize them to purchase additional items from your store.

You can either use email marketing to recover abandoned carts or as another form of upselling or cross-selling to increase your AOV.

Offer Tiered Shipping Options

It simply means providing different price points for customers who prefer faster shipping.

It's like the FastPass of Disney parks, you get to opt-in for a slightly higher price so you can skip the regular lines and get priority access to popular rides.

In eCommerce, offering a higher-tiered shipping option can help increase average order value because customers may be willing to pay more for faster shipping, which is convenient and alleviates the anticipation of waiting for their items to arrive.

By giving customers multiple shipping options, you’re giving them control over their purchase decisions, increasing the chances that they’ll buy more from you.

Average order per customer formula

Once you’ve made improvements to your store and implemented the strategies above, it’s important to measure the results.

The formula for average order value (AOV) is simple: Divide total revenue by total orders.

So it's the total revenue generated from orders / total number of orders = Average order value.

For example, if an eCommerce store generates $10,000 in revenue from 100 orders, the AOV would be: $10,000 / 100 = $100

It simply means that on average, each customer spends $100 per order.

What is a good average order value?

The value of a "good" average order value (AOV) can vary depending on various factors such as the industry, business size, and products or services being sold.

However, in general, a higher AOV is desirable as it indicates that customers are spending more per order, which can lead to revenue growth and profitability for your eCommerce brand.

For example, in industries such as fashion, a good AOV might be around $50 to $100, while in luxury industries like jewellery, it could be significantly higher. In addition, seasonal events like Black Friday or Cyber Monday can also affect AOV.

To sum up

It’s important to remember that increasing the average order value is a process. It takes a lot of effort, consistency, and creative problem-solving to ensure that customers are happy and willing to spend more in your store.

So don't reinvent the wheel and utilize some of these proven strategies you see fit By applying these, you can give customers more value for their money as well as encourage them to purchase.

Just make sure to analyze the data as you go and adjust your strategies where needed. That way, you'll see what works best and will ensure you reach maximum profitability.

If you need guidance to execute any of these strategies, feel free to talk to our experts.

We’ll provide personalized recommendations and advice on how to best increase your average order value.

You can get started right here.

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