11 proven strategies to increase AOV for an ecommerce business

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Ecommerce business owners and teams never rest. Running an online store requires constant improvements and adjustments. To understand what changes are needed, companies perform regular conversion rate audits and track other KPIs and metrics relevant to their business.

Average order value (AOV) is one of the most important ecommerce metrics indicating how much money customers spend for one order in general. So, basically, high AOV denotes great revenue and profitability. Yet, how do you achieve a good AOV figure? The article will provide you with several efficient strategies for increasing it.

Essence of AOV and its importance for ecommerce

Average order value is the average amount of money spent on each order over a specific period. It’s usually calculated on a weekly or monthly basis. You can calculate average order value by dividing your revenue by the number of orders. 

By monitoring your company’s AOV, you can assess the effectiveness of the pricing plan and marketing initiatives. AOV is required to calculate the long-term worth of every single customer. Important details on client outreach initiatives, such as customer acquisition and retention, are also provided. 

Increasing the average order value can be a faster and easier method than paying for advertisements to bring more visitors to the website, which can be time-consuming and expensive. Besides, AOV offers information that may be used to understand customer behavior better, analyze advertising expenditures, assess marketing tactics, alter site designs, and look into product pricing.

You should know that a high AOV shows that you are getting the most out of every transaction. Conversely, a low AOV suggests that your transaction income is poor. In this situation, you may think about changing your approach to provide your paying clients with more choices.

How to increase average order value for an ecommerce business

Improving Average Order Value (AOV) is crucial for businesses because it boosts revenue without the need for new customer acquisition, which can be costlier. A higher average order value leads to better profit margins since fixed costs, like shipping, remain constant for larger orders. 

This efficiency in revenue generation offers a competitive advantage, especially in saturated markets. It also maximizes the value derived from marketing spends, encourages product diversification, and provides a safety buffer during market fluctuations. 

Additionally, a focus on AOV offers deeper customer insights and ensures long-term business sustainability. In essence, enhancing AOV ensures businesses maximize returns from their existing resources and customer base. There are several ways to achieve high results. We’ve gathered the most efficient of them.

1. Discounts and special offers

Regular discounts or exclusive offers encourage customers to make larger purchases in a single transaction. ‘Buy One Get One Free’ offers, percentage reductions on the overall purchase value, and even promotions tailored to a particular season are some examples of these. 

Product discounts can increase sales and the average order value. This is one of the easiest ways to increase average order value and contribute to overall site conversion rate improvements. Customers are more inclined to add more products to their carts since they will receive a better value.

2. Optimized pricing

This involves understanding the perceived value of your products and adjusting prices accordingly. If prices are excessively high, customers may be dissuaded from making a purchase, and if prices are too low, it may be difficult to increase average order value. The pricing must enable the business to turn a profit while remaining competitive. 

Through market research, A/B testing, and competitor benchmarking, you can identify the sweet spot where customers are willing to spend more. Sustain profit margins while modifying product costs to adhere to industry standards. Also, think about offering better products at a higher price point.

3. Upselling and cross-selling

Upselling and cross-selling are one of the most efficient methods for AOV improvement. According to Funnel Strategist, 10% to 30% of ecommerce revenue is generated through Upsells. Upselling involves recommending a more expensive item than the one the customer is considering, while cross-selling involves suggesting complementary products. The basic concept of these tactics is to present consumers with additional things to add to their cart.

Upselling and cross-selling call for substantially more than just positioning an abundance of merchandise in front of buyers. Every day, consumers are faced with an overwhelming amount of choices. Thus, having more possibilities might make the work even more difficult.

People don’t have long attention spans. Therefore, you should make cross-selling and upselling quick, easy, and frictionless. Proposing products to clients is most commonly done on the product page or immediately before the checkout.

4. Product bundles

It can be stressful to shop, and sometimes people don’t want to take their time choosing certain things. However, what if you could provide simple bundle packages to make their life easier? Bundled items are more likely to be bought by customers since they save time and reduce decision-making.

Creating product packages or sets at a discounted rate can motivate customers to purchase more. For instance, selling a camera with a lens, bag, and memory card as a bundle could be more appealing than purchasing each item separately, both in terms of price and convenience.

Among your options is to provide pre-selected package discounts depending on the favored items or inclinations of the customers, make packages for holidays or special events, showcase the discounts that potential customers will experience when they buy a package, etc.

5. Free shipping

Don’t be afraid to offer free shipping. Shipping costs can be a deterrent for many online shoppers. Offering free shipping for orders above a particular amount can push customers to add more items to their cart. According to the Baymard Institute, high shipping cost is the reason for cart abandonment in 48% of cases. Hence, free shipping can become a groundbreaking solution.

A shipping option might be offered if an order reaches a particular amount. This strategy might save delivery costs for minor items and entice customers to make larger purchases from the website.

Showcase this deal prominently on your product pages, checkout page, and homepage. Notifications can also inform customers how close they are to becoming eligible for free shipment as they are nearing the free shipping threshold.

6. Loyalty program

Rewarding loyal customers for their brand interactions is a great strategy to increase the average order value as well as the customer lifetime value. Launch a loyalty program to incentivize your buyers to complete certain activities in return for benefits like cash back, early access to new items, or discounts.

The goal of loyalty programs is to keep customers. Additionally, as more items equate to advancement to the next tier and additional benefits, they raise the average check.

It might be a present, a discount on their subsequent purchase, or even the opportunity to be the first to get the newest product range. They then proceed to add a couple more things to their cart, spending more money on your business. They will also return again and time again to use those well-earned points.

7. Feeling of urgency

Have you heard of FOMO or the fear of missing out? You should know that you may get customers to seize the opportunity to purchase something uncommon or limited by creating a sense of urgency or scarcity. 

Here are some strategies to create urgency:

  • Limited-time offers: Flash sales, daily deals, and hourly discounts can push consumers to buy now rather than later, as they don’t want to miss the advantageous pricing.
  • Countdown timers: Visually showing the time left for a deal or offer increases the sense of urgency. The ticking clock reminds customers that time is running out.
  • Low stock alerts: Indicators such as “Only three items left” can push a potential buyer to complete the purchase, fearing someone else might get it first.
  • Exclusive offers: Deals available only for a specific group (like newsletter subscribers or app users) for a limited time can drive quick sales, as people perceive them as exclusive privileges.
  • Exit-intent pop-ups: These are pop-ups triggered when a user is about to leave a page. They can offer a limited-time discount or deal, creating an immediate reason for the user to reconsider leaving.
  • Reminders: Send email or push notifications about items left in the cart, especially if stock levels are dropping or if a sale on those items is about to end.

8. Easy return process

A straightforward return process builds trust. When people know they can easily return or exchange products they’re unsatisfied with, they are less risk-averse and more willing to try new products or make bulk purchases.

Customers are more willing to devote their time and resources to a business when they know that returns and exchanges are simple to complete. It will also assist you in allaying any doubts they might have about purchasing from you.

Make sure your return policy is understandable and unambiguous. Steer clear of unclear or concealed terms and conditions that might put off buyers. Use every chance to promote your AOV-boosting return policy, such as purchase confirmation emails, social media postings, and website banners, after you have a customer-friendly return policy in place.

9. Demonstration of social proof

Featuring genuine reviews, testimonials, user-generated photos, or even influencer endorsements can significantly influence buying behavior. When potential customers see that others are purchasing and enjoying the products, they are more inclined to trust the brand and make more extensive purchases.

User-generated content is one of the best ways to provide social proof. To find out what your customers think of the products, you might also publish reviews on your social media pages and web pages.

10. Free trials for premium products

Offering complimentary samples of more costly or expensive items is a very effective approach to boost AOV and conversions. Sales of a product or service might rise when a premium version is made available to customers for a brief time. After customers see the advantages, they could be more inclined to buy the entire product or look into alternative high-end options. 

Promoting a trial period is another effective tactic for digital entry-level products. When the benefits of a product are shown, any lingering skepticism is dispelled, encouraging customers to make larger purchases.

11. Live chat support system

Offering real-time assistance can resolve queries immediately, enhancing user experience. When customers know they can get instant answers to their questions, their confidence in making a purchase decision increases. This not only can lead to a direct sale but can also result in upselling opportunities.

Chatbots can address basic inquiries regarding goods and services. Since AI-enabled chatbots don’t get tired, they are more effective than customer support agents. They are capable of doing routine, easy jobs like taking orders, reserving tables and rooms, and updating customers on their order status. Additionally, chatbots can make suggestions based on past purchases and queries. 

For example, before buying something, a customer would expect a timely answer if they wanted further information on the shipping costs. Quick response increases the likelihood of converting such customers, increasing revenues and, consequently, average customer value (AOV) for the business.

Final words

Navigating the dynamic world of ecommerce requires businesses to be proactive, adaptive, and innovative. Achieving an optimal AOV is integral for driving revenue and profitability.

Through the 11 proven strategies outlined in this article, ranging from tactical promotions to leveraging psychological triggers and harnessing technology, businesses can not only elevate their average order value but also enhance the overall customer experience. 

It’s evident that fostering trust, delivering value, and ensuring seamless interactions are at the heart of maximizing transactional value. By implementing these tactics, eCommerce businesses can ensure they’re not just selling more but also building lasting relationships with their customers, ensuring long-term growth and success.


Kate Parish
Kate Parish
Kate Parish is a chief marketing officer at Onilab. She has almost a decade of experience in the company and is still enthusiastic about every aspect of digital marketing. Kate sees the marketing mission in ensuring sustainable business growth. For this purpose, she helps companies and readers create efficient campaigns, solve common problems, and enhance crucial website metrics, such as conversions, bounce rates, and others.
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