Average Order Value (AOV) is the average amount spent by customers on each online purchase made on your webstore. The value of the average basket is usually calculated using this formula:
Total revenue before taxes and shipping / number of orders placed = average basket value.
As an e-commerce store owner, increasing your average order value (AOV) is like adding sprinkles to your sundae – it just makes it better! By implementing some tips and strategies, you can boost your e-commerce store’s AOV and enjoy some extra profits.
In this blog post, we’ll dish out some tasty tips to help you increase your AOV. 🍦🍬
1. Offer free shipping on orders above a certain threshold 🚚
Everyone loves free stuff, especially when it comes to shipping. Offering free shipping on orders above a certain threshold is like giving your customers a golden ticket to Willy Wonka’s chocolate factory – they’ll jump at the chance to add more items to their cart to qualify for it. Plus, you’ll get the added benefit of boosting your AOV. It’s a win-win! 🏆
Most customers are willing to add items to their online shopping cart in order to reach the minimum amount required to qualify for free shipping. Our advice is that you set a minimum level for free shipping that ensures you are always profitable.
💡 Bonus resource: For more tips on how to optimize your shipping strategy to win you more sales, check out this additional resource.
2. Bundle products together 🎁
Who doesn’t love a good bundle deal? Bundling complementary products together can be a great way to increase your AOV. It’s like pairing your fries with your burger – they just go together. For example, if you sell fitness apparel, you could bundle leggings, a sports bra, and a tank top together at a discounted price. Your customers will appreciate the savings and the convenience of buying everything they need in one bundle.
In general, the more products offered in the package, the more value perceived by the customer. This will increase their purchase intent, and the size of your order values.
There are two different types of bundling:
- Pure bundling is the purchase of items grouped into one. For example, when you buy the Microsoft Office pack, it’s a complete pack. You cannot buy only Excel or Word.
- Mixed bundling is where you offer the choice to purchase items separately or to buy the pack that contains several products at a more attractive price.
3. Offer discounts for bulk purchases 💸
Want your customers to buy more? Offer them a discount for buying in bulk! It’s like getting a free side of guac with your burrito bowl – who can resist? By offering a percentage off for bulk purchases, you can encourage your customers to buy more items at once, increasing your AOV in the process.
4. Upsell and cross-sell 🛍️
Upselling and cross-selling are like the dynamic duo of increasing your AOV. Upselling involves offering customers a higher-end product or a more expensive version of the item they are already purchasing. Cross-selling involves suggesting complementary products to the item the customer is purchasing.
It’s like offering a side of bacon with your eggs – it just makes sense! Both of these strategies can encourage customers to add more items to their cart, ultimately increasing your AOV.
Instead of simply recommending other products, choose products that are complementary to the product the customer has placed in his or her shopping cart. For example, a pair of pants for a tank top or the previous album of the artist whose CD they just bought.
Amazon are the masters when it comes to cross-selling and it’s very effective for building up large baskets:
5. Implement loyalty programs 🎉
Who doesn’t love being rewarded for their loyalty? Implementing a loyalty program is like giving your customers a pat on the back for being awesome. Offer rewards, such as discounts or free items, for customers who spend a certain amount of money or purchase a certain number of items. This can incentivize customers to make more purchases, ultimately increasing your AOV. It’s like a big group hug, but with discounts! 🤗💸
“Increasing retention by just 5% through customer loyalty programs can boost revenue by 25 to 95%.”
Annex Cloud
Here’s an example of a tiered rewards scheme that rewards big baskets:
6. FOMO 😱
FOMO (Fear of Missing Out) refers to the fear of missing something.
Playing with people’s fear of missing something is a great way to generate opportunity buys. This technique uses time to motivate buyers to take action by offering limited irresistible offers.
If you have products that will soon be out of stock, display it clearly to your customers: “Only 10 left! Order soon!”. Your customers will be more likely to buy for fear of not being able to order afterwards.
You can also couple this technique with cross-selling by displaying the availability (only when the product is soon out of stock) directly in the box containing the associated products.
7. Turn it into a contest 🏆
Indicate that each customer who has placed an order during a given period will have a chance to win your “super gift”. To entice them to increase the amount of their order, tell them that they will get an additional entry with every $50 purchase.
If your gift is attractive enough, your customers will be inclined to spend more. It’s all about incentives.
(Don’t forget to check local laws concerning contests with a purchase obligation beforehand!)
Conclusion
It’s useful to have a global view of how average order values are distributed on the web. Statista provides a great report on the average value of online shopping orders in the United States by device:
We can see that the average shopping cart on desktop is in the lead with an average of $155.75, with only a slight difference between tablets and phones. However, the picture is a clear that an omnichannel shopping experience is required.
By implementing these tips and strategies, you can effectively increase your e-commerce store’s AOV and enjoy some extra profits. Remember to turn every point of interaction wit your customers into an upselling opportunity. You can even profit when you’ve sold out of stock!
Keep in mind that not all strategies may work for your business, so test and adjust as needed to find what works best for you. So go forth and boost that AOV!
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