{"id":393,"date":"2024-03-28T16:35:16","date_gmt":"2024-03-28T16:35:16","guid":{"rendered":"https:\/\/ecomvivid.com\/blog\/?p=393"},"modified":"2024-04-14T10:01:48","modified_gmt":"2024-04-14T10:01:48","slug":"increase-average-order-value","status":"publish","type":"post","link":"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/","title":{"rendered":"8 Effective Ways to Increase Your Average Order Value (AOV)"},"content":{"rendered":"\n<p>What does every business eventually aim for?<\/p>\n\n\n\n<p>It\u2019s making money. Right?<\/p>\n\n\n\n<p>Like any other business, even eCommerce ultimately aims to make a profit from each transaction and that is quite easily possible.<\/p>\n\n\n\n<p>Wondering how?<\/p>\n\n\n\n<p>Well, just by increasing the average order value (AOV), an eCommerce business can get all the benefits that it is aiming for.<\/p>\n\n\n\n<p>There are different time-tested strategies to increase the average order value. <\/p>\n\n\n\n<p>Before exploring those strategies, let\u2019s first understand what is the average order value.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#What_is_the_Average_Order_Value_AOV\" >What is the Average Order Value (AOV)?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#How_to_Increase_the_Average_Order_Value\" >How to Increase the Average Order Value?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#1_Offer_a_discount_on_minimum_order\" >#1. Offer a discount on minimum order<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#2_Offer_free_shipping_threshold\" >#2. Offer free shipping threshold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#3_Provide_product_bundle_packages\" >#3. Provide product bundle packages<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#4_Exclusive_first-time_offers\" >#4. Exclusive first-time offers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#5_Time-based_offers\" >#5. Time-based offers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#6_Loyalty_programs\" >#6. Loyalty programs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#7_Offer_a_gift_card\" >#7. Offer a gift card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ecomvivid.com\/blog\/increase-average-order-value\/#8_Place_high_or_highest-priced_products_first\" >#8. Place high or highest-priced products first<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Average_Order_Value_AOV\"><\/span>What is the Average Order Value (AOV)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized has-custom-border is-style-default wp-duotone-unset-1\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"350\" src=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value.jpg\" alt=\"average order value\" class=\"wp-image-394\" style=\"border-width:1px;border-radius:8px;width:700px;height:350px\" srcset=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value.jpg 700w, https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value-300x150.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<p>Average Order Value (AOV) tracks the average amount spent by each customer while placing an order in your store.<\/p>\n\n\n\n<p>The simple formula for calculating average order value is by dividing the total revenue by the number of orders.<\/p>\n\n\n\n<p><strong>AOV = Total Revenue \/ Number of Orders<\/strong><\/p>\n\n\n\n<p>For additional benefits and easy calculations, you can use Google Analytics and track average revenue orders for the transactions. <\/p>\n\n\n\n<p>Create a Google Analytics account and <a href=\"https:\/\/www.hotjar.com\/google-analytics\/glossary\/ecommerce-tracking\/\" target=\"_blank\" rel=\"noreferrer noopener\">enable eCommerce tracking<\/a>.<\/p>\n\n\n\n<p>A report from Shopify shows that Japanese online buyers spend the most per order in the world followed by Canada, Singapore, and Australia.<\/p>\n\n\n\n<p>The US ranked 5th with US$81.26 Average order value while neighbour Canada stands 2nd with US$100.66 AOV.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full has-custom-border\"><img loading=\"lazy\" decoding=\"async\" width=\"705\" height=\"436\" src=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value-by-country.png\" alt=\"AOV by country on Shopify\" class=\"wp-image-395\" style=\"border-radius:10px\" srcset=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value-by-country.png 705w, https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2023\/06\/average-order-value-by-country-300x186.png 300w\" sizes=\"auto, (max-width: 705px) 100vw, 705px\" \/><figcaption class=\"wp-element-caption\">eCommerce Average Order Value by Country on Shopify<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Increase_the_Average_Order_Value\"><\/span>How to Increase the Average Order Value?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here are the most effective ways that compel your customers to spend more and boost your Average Order Value:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Offer_a_discount_on_minimum_order\"><\/span><strong>#1. Offer a discount on minimum order<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Offering discounts is one of the most powerful ways to increase sales. You can establish minimum orders for discount.<\/p>\n\n\n\n<p>For example, you can ask your customers to spend a minimum of $100 or more and avail 25% discount. <\/p>\n\n\n\n<p>This can help to change your average order value. Many branded eCommerce stores are the biggest fans of minimum order discounts.<\/p>\n\n\n\n<p>If there is a specific segment of products that you want your customers to pay attention to then you can experiment with offering minimum purchase discounts on those particular products.<\/p>\n\n\n\n<p><strong>Tips, Best Practices, and Example<\/strong>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Calculate your MOV and AOV. This tells you how much people usually spend. Then build your tired discounts on minimum order value.<\/li>\n\n\n\n<li>Offer this type of discount on products that need to be replenished or refilled. This will motivate customers to buy before the offer ends.<\/li>\n\n\n\n<li>Use quantity break apps. These apps are a perfect solution for automatically applying discounts based on how much a customer spends.<\/li>\n\n\n\n<li>Example: The Dom offers a $40 discount on $200 spent.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"322\" src=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2024\/03\/minimum-order-discount.jpg\" alt=\"\" class=\"wp-image-470\" srcset=\"https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2024\/03\/minimum-order-discount.jpg 800w, https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2024\/03\/minimum-order-discount-300x121.jpg 300w, https:\/\/ecomvivid.com\/blog\/wp-content\/uploads\/2024\/03\/minimum-order-discount-768x309.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Offer_free_shipping_threshold\"><\/span><strong>#2.<\/strong> <strong>Offer free shipping threshold<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Just like offering a discount on minimum orders, you can also offer free shipping on a minimum order value.<\/p>\n\n\n\n<p>For example \u2013 Free shipping on orders above $80. Additionally, you can display a notification at the checkout. <\/p>\n\n\n\n<p>Suppose the customer purchase is less than the free shipping threshold. <\/p>\n\n\n\n<p>In that case, notification might encourage the customers to make more purchases and avail of free shipping and eventually help you in increasing your average order value.<\/p>\n\n\n\n<p>Especially if the difference between their purchase amount and the free shipping offer amount is less (for example: If the customer purchases for $65 or $70 and free shipping is above $80.) then there are more chances of making more purchases and increasing the average order value.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Provide_product_bundle_packages\"><\/span><strong>#3.<\/strong> <strong>Provide product bundle packages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This is another effective way to increase the average order value. Offering suggestions or additional products will be appreciated by the customers and can have an impact on the purchase.<\/p>\n\n\n\n<p>For example, if the customer purchases a top, you can offer a suggestion that will complement the top like a pant, a pair of sandals, a bag, etc. If the bundle entices the customer additional purchase will be made. And not to mention bundle purchase is usually cheaper and saves time, so there are again great possibilities of an increase in average order value.<\/p>\n\n\n\n<p>Buy one get one or buy two, get one also works as a bundle deal (<a href=\"https:\/\/ecomvivid.com\/blog\/ecommerce-cross-selling\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cross Selling<\/a>). Make sure, the free product or gift you offer, doesn\u2019t much affect your <a href=\"https:\/\/ecomvivid.com\/tools\/profit-margin-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">profit margin<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Exclusive_first-time_offers\"><\/span><strong>#4.<\/strong> <strong>Exclusive first-time offers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This is a powerful tactic to attract first-time buyers. You can offer any kind of discount or deal to your first-time buyers. This will not only increase sales but also entice the customers to shop again.<\/p>\n\n\n\n<p>Make sure whatever you offer is exclusive, and attractive, and does not affect your profit margin. If they enjoy shopping at your site for the first time, there are chances, they will shop again and eventually, it will help in increasing your average order value.<\/p>\n\n\n\n<p>Create attractive pop-ups or directly add the offers on the home page, so that it instantly grabs attention and encourages first-time visitors to make the purchase.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Time-based_offers\"><\/span><strong>#5.<\/strong> <strong>Time-based offers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Flash sales and countdown deals create a sense of urgency and also FOMO (Fear of Losing Out) among the customers. <\/p>\n\n\n\n<p>This greatly boosts your average order value, especially during a slack period or off-season period. <\/p>\n\n\n\n<p>It can be anything, like for example if you are offering a 48-hour deal then you can offer the products at some flat discount rate, or give a gift on minimum order. <\/p>\n\n\n\n<p>Highlight the deals on the home page itself, it should be easily noticeable. Do not forget to incorporate a countdown timer to create urgency.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Loyalty_programs\"><\/span><strong>#6.<\/strong> <strong>Loyalty programs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>If there is something for first-time buyers then there should be something for your regular customers too. <\/p>\n\n\n\n<p>Yes, for repeat customers, you can offer a loyalty program. This will build a strong relationship with your customers as well as increase your average order value. <\/p>\n\n\n\n<p>Reserve all the best deals for your loyal customers as it will surely pay back you with good profits. They can turn up buying bulk quantities of products.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Offer_a_gift_card\"><\/span><strong>#7.<\/strong> <strong>Offer a gift card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>If you want to increase your average order value, do not neglect the gift card. Gift card likely increases the chances of customer shopping from your website again. <\/p>\n\n\n\n<p>The only thing you need to ensure is that you offer gift cards with only those products whose price is high enough that it doesn\u2019t cause you loss or no loss no profit. <\/p>\n\n\n\n<p>And yes, also do not forget that the gift card or discount coupon cannot be used with the current order. <\/p>\n\n\n\n<p>The coupon or promo code can only be applied on the next order, only this way will it help to boost your average order value.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Place_high_or_highest-priced_products_first\"><\/span><strong>#8.<\/strong> <strong>Place high or highest-priced products first<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The first products that catch the eye of the customers mostly influence their decision making so it is smart to showcase the high-priced products. <\/p>\n\n\n\n<p>It is a psychological strategy. You can place the highest-priced product between two reasonably priced or low-priced products.<\/p>\n\n\n\n<p>Even if the customer applies a price filter \u2013 low to high, you can promote the high-price tag products in between as ads or in suggestions. <\/p>\n\n\n\n<p>If it is attractive enough, the customer can change their mind and buy the product which eventually will improve the average order value.<\/p>\n\n\n\n<p>So, increase average order value by using these strategies wisely in your eCommerce business and get ready to witness the rise in sales.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What does every business eventually aim for? It\u2019s making money. Right? Like any other business, even eCommerce ultimately aims to make a profit from each transaction and that is quite easily possible. Wondering how? Well, just by increasing the average order value (AOV), an eCommerce business can get all the benefits that it is aiming [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":397,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-guides"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>8 Effective Ways to Increase Your Average Order Value (AOV)<\/title>\n<meta name=\"description\" content=\"Boost your sales with these 8 proven strategies to increase your average order value (AOV). 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