10 Proven Strategies to Boost Your Average Order Value in 2024

What is Average Order Value (AOV)

The Average Order Value (AOV) is a key metric for ecommerce businesses that indicates the average amount of money customers spend on each order. It is calculated by dividing the total revenue by the number of orders.

Why is Average Order Value Important

Increasing the AOV is essential for boosting revenue and profitability. By encouraging customers to spend more per order, businesses can maximize their earnings without having to acquire new customers.

How to Calculate Average Order Value

To calculate the AOV, simply divide the total revenue generated by the number of orders placed within a specific time frame. For example, if your ecommerce store made $10,000 in revenue from 100 orders, the AOV would be $100.

How to Check Your Average Order Value

Most ecommerce platforms and analytics tools provide built-in features to track and monitor the AOV. You can also calculate it manually by dividing the total revenue by the number of orders.

8 Ways to Increase Average Order Value

1. Offer a Free Shipping Threshold

Set a minimum order value to qualify for free shipping. This can motivate customers to add more items to their cart to reach the threshold and avoid paying for shipping.

2. Leverage Your Audience with Limited-Time Offers

Create a sense of urgency by offering limited-time promotions, such as “buy one, get one free” or “20% off on orders over $100”. This can encourage customers to make larger purchases to take advantage of the offer.

3. Make Your User Journey Special & Effective

Create a seamless and personalized user experience by recommending complementary products or highlighting high-value items. This can entice customers to add more items to their cart before checking out.

4. Display Cross-sell And Up-sell Items

Showcase related products or premium upgrades during the checkout process to tempt customers into adding more items to their order. This strategy is effective in increasing the overall value of each transaction.

5. Provide Bundle Deals and Bulk Options

Create bundled packages or bulk purchase options to encourage customers to buy more items at a discounted price. This can lead to higher AOV while offering value to the customers.

6. Arrange a Customer Loyalty Program

Reward customers for spending more by implementing a loyalty program that offers exclusive discounts, rewards, or points for every purchase. This can incentivize repeat purchases and larger orders.

7. Offer a Free Gift or Gift Card with a Purchase

Entice customers to spend more by offering a free gift or gift card for orders above a certain value. This can make the purchase more appealing and increase the AOV.

8. Include a Flexible Return Policy

Assure customers with a hassle-free and flexible return policy, which can provide them with the confidence to make larger purchases. This can reduce the fear of making a wrong purchase and encourage bigger orders.

Boost Your Average Order Value & Increase Revenue

Implementing these proven strategies can help ecommerce businesses boost their Average Order Value and ultimately increase their revenue. By encouraging customers to spend more per order, businesses can maximize their earnings and achieve sustainable growth in 2024 and beyond.