8 Ways to Increase Average Order Value for Your Business

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Ecommerce business owners believe that more revenue comes from more website traffic, but this is not always the case. Sometimes, traffic is not the most cost-effective way to grow a business. However, various methods can boost revenue. Increase the average order value or the conversion rate to start. The AOV formula is the easiest and effective way to calculate e-commerce order value. Calculate your website’s average order value by dividing the total revenue by the total number of orders.

Increase the average order value to give benefits such as:

  • Cost-effective marketing return
  • Profit and revenue
  • Sell more inventory

We have created a list of strategies you can use to increase average order values. Let’s have a look at creative ways to get more traffic to place big orders.


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1. Offer Free Shipping To Increase Average Order Value


It is one of the highly constructive ways to nudge visitors to spend more money while purchasing. Free home delivery is a tough challenge to manage by a retailer. However, offering free shipment over a certain threshold may overcome this problem. Let’s suppose a person is spending around $50 and the delivery cost you $5, then provide free delivery of minimum order of $60. Even so, you can offer free shipment for a minimum order of $150 and above. In both cases, it states that spend X amount and you will get free shipping. It is noted that 69% of people have bought more stuff than needed because of free delivery charges. People also will abandon a cart altogether if free shipping is not included. Amazon has us spoiled.


2. Execute First-Time Discounted Purchase


Hey, if you have just started your online business journey or the business is six months old, most visitors will be first-time customers. Provide one-time special discounts so people can get their hands on your new products at lesser prices. Attract the people by offering them live deals that help grow the business site’s average order value rate. 90% people could not resist buying a few products, so it is a good chance to turn visitors into clients. So, it will increase the overall purchase rate, and the business will grow rapidly.


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3. Free Gifts for Orders above X Amount


Online clients are often captivated by gift options. They get free presents from a website after reaching a certain order value, which indirectly means paying for gifts. Usually, gifts are samples and testers that the brands manufacture. This strategy is often used by perfume and cosmetic brands. Let’s say hypothetically, a perfume company offers a bundle of gifts with a minimum order of $150, and the customer wanted to try it for long but couldn’t for any reason. He or she finds a good deal of the package while buying a $150 order value.


4. Upselling and Cross-Selling To Increase Average Order Value


Visitors always need a little push for purchasing more products from your business website. Although, upselling and cross-selling are all about poking clients to buy complementary products that they already mean to take. Don’t enforce visitors but suggest them like a friend. Suppose a person has purchased a product of $50, it is hard to convince them to buy another item of $50. But it would be good to share a $5 or $10 product that compliments the customer’s price range. Let’s have an example of complementary goods like shoes or accessories for a dress, makeup brushes for makeup palettes or fries, and a cold drink with a burger.


Increase Average Order Value

5. Bundle Product Offers


We have noticed that customers purchase more when they see package deals online. In this way, you are boosting the customer purchase value by bundling the items. The bundled items cost less than if the same products were bought separately. Moreover, show the cost savings gained in either percentage or absolute value for best results. Offer product packages that help to cover all in one solution for the desired experience. Or you can encourage clients to customize their deals according to their requirements. Bulk offers work best for daily household items such as clothing, groceries, food, cosmetics, stationery, etc.


Increase Average Order Value

6. Present Expensive Products


Comparing cheap goods with expensive products is smart to attain the average order value goal. When you display two products of the same niche but with variable prices, of course, people will be automatically attracted to the cheaper one. In this way, they spend more money buying products than the higher-priced items. It is one of the effective methods to dodge the clients. In contrast, the expensive products are not showed to be the best sellers.


Increase Average Order Value

7. Limited Time Offers To Increase Average Order Value


Limited time offer is a powerful technique to increase e-commerce AOV. It is quite a natural fact that visitors prefer to buy stuff that has little time offer. People automatically get convenience to grab these offers. Offer time-sensitive deals to enlarge the website traffic. For example, brand deals such as “5 in stock” or “48 other people are looking to this offer” works well for improving average order value during slow sales. Furthermore, you can post these promotions on social media platforms or advertise on other social networking websites.


Increase Average Order Value

8. Live Chat by Staff Members


Some customers may have questions that will pop up while looking for products or buying online. Being active on live chat helps customers get quick answers to their questions which ultimately generates more sales. Live chat is really helpful when you want detailed information about any product. However, clients do ask about the features of household items such as furniture and gadget. When you instantly connect with the visitors on the website, you help them buy and develop a healthy talk session that can motivate buyers for repeat sales and increase average order value on your website. Here is a great plugin for WordPress, so you can add live chat to your website! 


In conclusion, there are many ways to increase the average order value. Sometimes we just need to be a little creative. Comment below any ways you have found that work regarding increasing the average order value! Take a look at some ways to improve your customer’s experience on your website with this article! 

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