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How to Increase Average Order Value on Your Ecommerce Site

To help with increasing Average Order Value on your eCommerce site, we have compiled 10 actionable tips that will get you started in the right direction

Marc
Published on Jan 01, 2022

 Increase Average Order Value on Your Ecommerce Site

Do you want to increase the Average Order Value on your Shopify store? Average Order Value is the average amount of money customers spend per order. If you are like most online store owners, this number should be high.

Average Order Value (AOV) is an important metric for determining how much profit each customer’s purchase generates. With AOV, it doesn’t matter if a customer spends $1 or $1000 – if they make one purchase, their AOV would be $1.

Increasing AOV will help boost revenue because people are willing to spend more money when confident about buying from you. While it also helps cut down on costs by keeping less inventory on hand since physical stores have greater overhead costs than digital ones do.

The AOV can be improved by adopting a number of proven optimisation techniques. We know you’re eager to get started on these tactics, but let’s get things in order.

Understanding Average Order Value

An AOV is the average amount a customer spends on an order. This metric is important for eCommerce businesses because it can indicate how healthy a business is and whether it generates more revenue from existing customers or attracts new ones. 

To calculate it, you divide total sales (typically over a certain period) with the number of orders that have been placed during this time frame.

10 Tips to Maximize Average Order Value on Your Ecommerce Site

To help with increasing Average Order Values on your eCommerce site, we have compiled 10 actionable tips that will get you started in the right direction!

1. For Purchases of More than a Certain Amount, Offer Free Delivery

The importance of free shipping cannot be understated. After implementing free delivery for purchases over £30, Goodwill increased AOV by 20%. It can motivate customers, give them an incentive to buy right away, and give merchants an edge over their competition with this great marketing tool that Amazon has succeeded with because they make it part of their Prime membership, which offers free, fast one-day delivery on all orders!

According to UPS, 58 percent of customers would add extra items to their purchase to qualify for free delivery. As a result, this is an excellent approach to boost average order value.

These days, minimum orders are expected, which means if you’re late to the party and afraid of margins, it might be worth testing.

2. Create a Loyalty Program for Frequent Customers

By offering a loyalty scheme to customers, you encourage them to shop with you more often and order larger quantities. Additionally, encouraging big spenders who make larger orders every few weeks or months could also affect AOV, as they will likely be inclined to buy more often than others if given incentives like free shipping.

Loyal customers are the backbone of any organization. They make up 70% of total sales in some cases, so you want to do something special for them once in a while just because it’s what we’re all about.

So, it’s important not only in maintaining them but also to attract new ones.

3. Increase Average Order Value with Dynamic Retargeting

There’s one thing you can do to boost Average Order Value on your site without spending a penny: use dynamic retargeting. Dynamic retargeting is the key to success for Shopify stores.

Dynamic retargeting is more effective than basic retargeting because it allows you to show ads to customers who have already visited your site. 

Showing personalized ads during a customer’s journey, such as product recommendation ads based on purchase history from earlier periods. This gives your ad a higher chance of being seen and clicked on, increasing the Average Order Value.

By displaying personalized offers to visitors who leave a website, this technology can also recover lost sales from visitors.

4. Offer Minimum Spend Discounts

Giving discounts is a great way to entice customers who have already made up their minds about purchasing. If you want to get creative with your pricing, try offering a discount for purchases over certain amounts. It will allow customers the chance at an even better deal.

Setting up special offers can make your site more attractive and boost average order values. As a result, customers feel like they’re getting a deal when they’re simply using an Internet coupon code that gives them a discount on their purchase. It also provides you with some extra cash flow during sales periods and around holidays, when demand may be high anyway.

5. Promote Cross-Selling

Cross-selling is the art of convincing and persuading customers to buy additional products related to what they’re about to purchase on your website. For example, if someone purchases a camera from you and has recommendations like cases or memory cards available for them at the right time! So it’s no surprise that finding a successful cross-sell strategy will make you rich!

Specify which customers will receive cross-sells, as it’s important to avoid sending them unwanted offers that could turn away potential buyers who are loyal subscribers in need.

6. Offer Volume-based Discounts

Offering volume-based discounts is one way of incentivizing the customer to buy more than one item. An example of this would be a store offering a 5% discount for purchases above $10 and 10% for $25+.

Paperstone has increased their AOV by 19% when they offer bulk discounts. As a result, the discounting helps clear excess inventory and boost sales, resulting in higher profits for Paperstone.

The best way to keep your profit margins high and customer acquisition rates up are by calculating bulk discounts very carefully. If you’re not sure what prices to set your discounts at, you can use some basic mathematics: multiply the discount percentage with the purchase price and add the result to the original order price.

You need deals that attract customers, but ones that don’t hurt you in terms of the revenue!

7. Empower Customers to Chat Live

Studies have shown that chat is a more memorable experience than email or phone calls. Chat’s immediacy makes customers happy while boosting your AOV and conversion rates

The Forrester study found that live chat is a great way to increase sales. In fact, 10% more orders are placed with customers who use this service. This customer service increases revenue per hour by 48% and conversion rates by 40%. And these numbers don’t even consider how many people will convert after chatting with someone in real-time.

According to reports, 73% of consumers who have used live chat were pleased with the experience. Chatting on an instant messenger or through your phone’s messaging app. These are just some ways to get started chatting for brands and businesses today (and don’t forget about Facebook Messenger). Why? In most cases, you don’t have to wait long before you’re connected with someone, so customers feel valued quickly.

8.  Take advantage of up-selling

Up-selling refers to a strategy in which retailers attempt to convince prospective customers to buy another product in the retail world. 

Amazon’s up-selling strategy is a great example of getting customers to feel like they need even more expensive items. Amazon uses this technique to position their more expensive products next to similar products and convince people to buy something even better.

Though it’s not without its risks, this technique is a sure-fire way to increase average order value. To differentiate your product from the rest, you will need to communicate with your customers and create something unique that meets their needs perfectly.

9. Create Product Packages

BaubleBar saw its average order value increase by $22 in a matter of days after it offered product bundles. This bundle screams “deal” to customers. They’re convinced right away because nothing about this seems overpriced. In fact, if you observe closely, you’ll see plenty of bargains.

Shoppers are more likely to buy products in a bundle if they contain items that interest the shopper. When shopping, shoppers may wish to purchase an umbrella and a raincoat simultaneously but have enough funds to buy one of them.

When retailers combine these two necessities in a package deal with discounted prices, it saves them time and money. After all, nobody likes to shop for too long.

10. Send Personalized Emails with Exclusive Deals

You might be wondering how personalisation can make your email more engaging. It has been shown that customers are more likely to open emails from unfamiliar companies if they have a personalized tone and contain content based on what the individual in question has browsed or purchased previously – while remaining professional, of course.

Personalizing the email with the information you know about the customer will increase their interest and make them feel like they’re getting a special offer.

For example, if you offer products targeted at men, use phrases like “Hey guys!” or “Just for you!” in the subject line. Put “Just for Kids!” in the subject line if you sell children’s clothes. Lastly, if your store sells vintage items, mention that in the subject so your customers have an idea of what to expect when they open it.

Get Started with the AOV Initiative Today

In summary, increasing the average order value will be worth your time and effort. Once you move in the right direction with this mission, it’ll become an ongoing gift that never ends.

Launching an Average Order Value mission directly from your glowtify dashboard is easy. Our app will track progress as you test ideas to discover which ones work best for the site and launch them accordingly.

Go from guesswork to growth, faster.

The marketing platform that gives you a clear path to eCommerce success. Glowtify uses AI to find the best way to grow your online store, then gives you the tools to do it faster.

Try it - it's free

Go from guesswork to growth, faster.

The marketing platform that gives you a clear path to eCommerce success. Glowtify uses AI to find the best way to grow your online store, then gives you the tools to do it faster.