4 Ways to Increase Your Average Order Value

When running an online business, revenue and profit are key things to focus on. After all, the point of an ecommerce business is to make money by selling products to customers. However, it’s not simply a case of selling as much as possible to as many customers as possible.

There’s a lot to be said about increasing the order value of each customer rather than simply trying to attract as many customers as possible. This is where the average order value comes in. Knowing your AOV can help you to focus your marketing efforts and sales strategies better, and it can help you to identify key ways to increase profits. Of course, if your AOV is lacking, you will need to improve it. 

There are a few ways to increase your average order value, such as offering free shipping with a minimum order value or creating packages and bundles of products. In this blog, we look at four of the most effective ways of boosting your AOV.

What is Your Average Order Value?

A lot goes into running an ecommerce business, and much of the focus is on boosting revenue and sales. However, many people overlook average order value when it’s a hugely important metric to measure. AOV is the average amount customers spend when they place an order on your website, and it’s calculated by adding up your online shop’s total revenue and dividing it by your total number of customers. This will give you the average value for each order placed.


Knowing your AOV is important because it can help you increase your revenue and profitability, both leading to a more successful online business. By boosting your AOV, you can generate more revenue without attracting more customers. This is helpful for small businesses, especially those without the budget to invest heavily in customer acquisition. It’s also possible to offer a better customer experience if you increase your AOV, as customers are more likely to qualify for free delivery or special offers, which will ensure they remember their shopping experience positively. 

Key Ways to Increase Your AOV

There are several ways to increase your average order value effectively, and most of these can be utilised by every type of online business. Below, we have detailed four of the key techniques to consider.

1. Offer ‘Free Shipping’ and Gifts with a Minimum Order – A lot of customers take shipping costs into account when they are considering whether or not to increase their order value, so it’s not something to overlook. Offering free shipping for orders over a certain amount is an effective way to encourage someone to spend more; it could be the thing that tips them over the edge and makes them add one more item to their basket. Instantly, this increases your AOV. You could also do a similar thing by offering free gifts over a certain amount, such as money-off codes or discounts if customers spend a certain amount.


2. Create Packages and Product Bundles – Adding product bundles into your pricing strategy can boost your AOV, allowing customers to save money on certain products when purchased together. One way of doing this is to create product bundles of things that provide a solution when used together. For example, a bundle of complementary skincare products or everything needed for a specific craft project. This increases the value of a customer’s order while also ensuring they get the most out of their purchase. You could even go one step further by letting customers create their own bundles based on their individual needs.


3. Upsell and Cross-Sell Products – Upselling and cross-selling products focus on encouraging customers to add complementary products to their purchase or buy a premium version of the product they’re already planning to buy. Though upselling and cross-selling can hinder your revenue if done too much, it’s an effective way of boosting your AOV. You should avoid upselling too much, as this tends to have the opposite effect. You should aim to provide a friendly recommendation or a friendly hint rather than obviously trying to make a sale. 


4. Have Excellent Live Chat Support – Offering high-quality live chat support ensures that customers have their questions answered quickly, which increases the chances of them going through with a purchase. Instead of abandoning the cart because they are unsure about a product or don’t have the information needed to continue, they can rely on live chat support to guide them through the process and then confidently complete a purchase. This increases sales and can close the deal on products a customer is unsure about.


Whether you improve your live chat support offerings or offer free shipping for large-value orders, the above techniques will surely boost your AOV. You can choose one or two of the ways listed above or utilise them all. It is a case of finding out what works best for your business.

Increase AOV on Shopify and Shopify Plus

There is no denying the popularity of Shopify and Shopify Plus as ecommerce platforms; they are favoured by businesses large and small, from established international brands to small startups. This is because Shopify has much to offer, including various ways to increase your average order value. Whatever technique you choose to try, Shopify Plus has the capabilities to make it work. However, this relies on you having a professional and impressive ecommerce website. Thankfully, this is made a lot easier with Quickfire Digital. 


At Quickfire Digital, we specialise in building ecommerce websites that work for you. To find out more, get in touch with our helpful team of experts.

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