What if you could dramatically boost your eCommerce revenue without spending more on advertising or acquiring new customers? It's possible by increasing your average order value.
Your AOV represents the average dollar amount customers spend each time they purchase from your online store. It directly impacts your sales, margins and overall business profitability.
This comprehensive guide will explain what average order value is, why it matters, how to calculate your eCommerce AOV, and most importantly - 20 highly effective tactics to increase it.
Whether you sell physical products, digital goods or services, growing your average order value provides a sustainable path to higher revenue, stronger customer loyalty and greater profits.
Let's dive in and explore the top 20 ways to lift your eCommerce AOV!
What is Average Order Value (AOV)? A Crucial eCommerce Metric Explained
Your average order value (AOV) measures the average amount spent each time a customer places an order on your eCommerce website or mobile app.
It's calculated by dividing your total revenue by the total number of orders for a given time period.
For example, if your eCommerce business generated $120,000 in revenue last month across 2,000 orders, your AOV would be $60.
($120,000 revenue / 2,000 orders = $60 AOV)
Tracking your AOV over time gives insight into customer purchasing behavior and your financial performance. A high or increasing AOV indicates customers are spending more per transaction, leading to higher revenue and stronger margins.
A declining AOV could signal issues with your pricing, promotions, product selection or brand experience. Regularly monitoring it enables you to quickly identify negative trends and take corrective actions.
Top 20 ways to boost your eCommerce average order value
1. Boosting Sales with Product Bundles: A Great Way to Increase Average Order Value
Bundling complementary products together at a discounted bundle price increases perceived value and encourages customers to spend more.
Create bundled sets of 2-4 complementary products and offer them at 10-30% off individual pricing. Bundling is proven to lift order values.
2. Cross-Selling: Recommend Relevant Add-Ons to Boost Average Value Orders
Strategically recommend related best-sellers, low inventory items and frequently purchased add-ons throughout the shopping experience. Well-targeted recommendations prompt more purchasing.
Make recommendations prominently on product, cart and checkout pages. Spotlight products likely to complement the main purchase.
3. Tiered Discounts: Pricing Strategies to Increase Your Average Order Value
Incentivize larger order sizes by offering increasing percentage discounts at higher spending thresholds. For example, $10 off orders over $100, $25 off orders over $200.
Tiered discounts reward bigger spends. Research pricing and margins to create discounts that benefit both customers and your bottom line.
4. Setting a Free Shipping Threshold: How it Impacts AOV
Offer free shipping once orders exceed a minimum order value. Customers are motivated to add more items to their carts to qualify for free delivery.
Calculate a minimum order value for free shipping that encourages bigger basket sizes yet still covers your shipping costs. Communicate threshold prominently.
5. Loyalty Programs: Rewarding Repeat Business and Increasing AOV
Reward repeat purchases from your best customers by providing points, discounts or free products when they reach certain spending milestones.
Develop a structured loyalty program with appealing rewards that incentivize your VIP customers to order more over time.
6. Recovering Abandoned Carts: A Tactical Approach to Increase AOV
Win back abandoned carts by sending customized discount codes and incentives shortly after cart abandonment to nudge customers to complete their purchase.
Follow up quickly on all abandoned carts. Personalized offers presenting an easy path to checkout will recover lost sales at higher values.
7. Pre-Order Perks: An eCommerce Strategy to Boost Average Order Value
Drive pre-orders for new product arrivals by providing exclusive early bird pricing, bonus gifts or other benefits to customers who order in advance.
Give customers reasons to pre-order and create urgency. Limited-time perks also generate buzz and help market upcoming releases.
8. Post-Purchase Coupons: Incentivize and Calculate Increased AOV
Follow up with a coupon code after a purchase if customers spend over a certain amount within a defined timeframe. This incentivizes quicker reordering.
Post-purchase coupons encourage repeat business. They work well for promotions like "Spend $100, get $20 off your next order".
9. Installment Financing: Facilitating High Value Orders and AOV Impacts
Offer payment plans through services like Affirm to break up costs for big ticket items. Customers are empowered to buy more when they can pay over time.
Financing removes large upfront payment barriers. It enables customers to conveniently split higher-cost purchases into manageable monthly installments.
10. Free Gift Cards: A Way to Increase Your Average Order Value
Add a coupon or gift card incentive when orders exceed a set threshold. The extra store credit gives customers a reason to spend more and return to redeem it.
Gift cards with qualified purchases drive immediate revenue plus future revenue when redeemed. They work for thresholds like "Spend $150, get a $20 gift card".
11. The Trust Factor: How Hassle-Free Returns Lead to a Higher AOV
Provide free return shipping and easy, no-questions-asked return policies. This gives customers peace of mind to purchase more items and try more products.
Return policies displaying confidence and customer care remove friction. Make returns quick and convenient to alleviate concerns around bigger baskets.
12. Welcoming New Customers: Increase Revenue by Enhancing Their First Experience
Offer generous sitewide discounts or extra perks for a customer's first purchase. Deal-seekers will spend more to maximize value. Follow up with an incentive for their second order.
Hook new customers with value-driven discounts and perks to secure higher initial AOV. Convert them into regular, satisfied buyers.
13. Gamification and Cross-Selling: Engaging Ways to Increase Average Value
Integrate gameplay elements like spin the wheel, scratch cards and online contests that reward coupons or discounts. These features boost engagement and order values.
Gamification makes shopping entertaining. Coupon prizes incentivize customers to browse and purchase more in hopes of winning discounts.
14. Bulk Order Discounts: A Business Decision That Can Boost AOV
Offer decreasing per unit costs when customers purchase larger quantities. The more units ordered, the lower the per unit price.
Bulk discounts are valued by B2B customers and consumers who want to save. Allow them to realize quantity savings at volume breakpoints.
15. Bundled Product Sets: Curated Ways to Increase Average Order
Assemble pre-defined bundles showcasing products that work well together and appeal to specific customer needs. Curated sets feel more thoughtful than generic pairings.
Customize product bundles for your audience segments. Group items purposefully based on use cases like recipes or projects to boost relevance.
16. Harmonizing Digital & Physical Sales: A Higher Average Order Value through Omnichannel Experiences
Enable easy ways for in-store customers to place additional digital orders. Provide coupons on receipts to incentivize more online purchases. Omnichannel experiences encourage bigger, combined spends.
Tightly integrate your physical and digital stores. Make it seamless for customers to purchase through both channels in a unified journey.
17. Real-Time Progress Indicators: How Close Is Each Customer to the Next AOV Threshold?
On cart page, dynamically display customers' progress toward free shipping, dollars away from the next discount tier, or additional steps to unlock more savings.
Real-time progress bars and messaging motivate customers to spend a bit more to reach the next level and maximize their savings.
18. Value-Added Services: Elevate Your Company’s AOV with Exclusive Offerings
Sell installation, setup, training and customization services associated with your products. Customers will pay more for a superior, end-to-end experience.
Service upsells are profitable add-ons. Offer VIP treatment through exclusive services that enhance your products for top customers.
19. The Ease of Re-Ordering: Why a Simple Click Can Elevate Sales and AOV
Allow customers to instantly re-order previous purchases with one-click. Quick re-ordering enables frictionless repurchasing of consumables and replenishment items.
One-click re-ordering optimizes the path to purchase for your best-selling products. Customers will order them more frequently when you remove all barriers.
20. Simplified Checkouts: Reducing Friction to Increase the Average Order Value
Remove friction during checkout. Offer guest checkout and keep forms short. Highlight discounts. Make it easy for customers to complete higher-value purchases.
A seamless, incentivized checkout experience reduces abandoned carts and keeps customers engaged as you guide them to complete purchases worry-free.
Conclusion: Making Business Decisions with AOV as a Central Metric
Increasing your average order value enables you to grow eCommerce revenue profitably without relying solely on acquiring new customers.
Implementing even a few of these 20 high-impact strategies will compound into significant AOV lifts over time. Doubling down on tactics that prove effective for your business is crucial.
Consistently monitor your progress. With ongoing testing and optimization, you can achieve steady and sustainable AOV growth each quarter.
Higher order values allow you to re-invest more in creating incredible customer experiences. The additional revenue also funds marketing to attract more of your ideal buyers.
Growing your average order value is a smart approach to power eCommerce expansion and rising profits for the long-term.