4 ways to increase your average order value

Average Order Value is the average dollar amount a customer spends when placing an order in your store. You can calculate it by dividing your store’s total revenue by the total number of orders taken.

There are many techniques you can use to increase your AOV. And this tutorial outlines 4 tried and true ways to up your average order value:

Upsell/Cross-sell is an easy way to increase your AOV. When customers choose an item, suggest an item that might be higher priced, but offer the customer more value. When you cross-sell, you’re offering a complementary product to the one they're already ready to purchase...Like suggesting batteries with a flashlight!
Bundling is when you pair similar items or offer a deal on items that go well together. Some of the same upsell apps also offer bundles so you can try different things to see what works.
Volume discount offers your customers a chance to save when they purchase more of the same product. This offer also works for site-wide shopping, as customers can choose many different products from all over your store to meet a minimum spend.
Post-purchase timed discount is a discount that only lasts for a short period of time or a free gift for a limited time. You can include this offer on your purchase confirmation page or email receipt that you automatically send to your customer.

SPEAKER: If you're a shopper like me, you'll recognize the tried and true tactics businesses use to entice customers and increase sales. Many of these techniques you can adopt today. AOV, or Average Order Value, is the average dollar amount a customer spends when placing an order in your store. You can calculate it by dividing your store's total revenue by the total number of orders taken.

Keep in mind that it doesn't take into account your expenses, like the cost of making the product or marketing spent. With that in mind, let's talk about four ways to up your average order value. The first is the cross-sell or upsell. This is an easy way to increase your AOV. When customers choose an item, suggest an item that may be higher priced, but offer the customer more value. When you cross-sell, you're offering a complementary product to the one they're ready to purchase.

Like why not add batteries to the flashlight you're buying. A quick search for upsell in the Shopify app store will give you some great options to choose from to add this feature to your store within minutes. Second, there's bundling. Bundling is another way to up your average order value. Offering a discount when customers buy multiple items or a particular group of items can encourage them to buy more.

You can bundle similar items or offer a deal on items that go well together. This encourages customers to shop ahead. Some of the same upsell apps also offer bundles, so you can try different things to see what works. A third way to increase your AOV is by offering a volume discount. A volume discount offers your customers a chance to save when they purchase more of the same product.

This offer also works for site-wide shopping, as customers can choose many different products from all over your store to meet a minimum spend. We've all seen the website banners that say free shipping over $100. You can also give a discount on orders over a certain price, like get 20% off store-wide when you spend $75. If you choose to add a discount to your website, make sure it's obvious, upfront, this is something you don't want your customers to miss.

And finally, the fourth way to increase your AOV is a post-purchase time discount. This is a discount that only lasts for a short period of time or a free gift for a limited time. You could include this offer on your purchase confirmation page or email receipt that you automatically send to your customer. To create a sense of urgency, time-sensitive deals are great. They can also help boost sales during slower periods.

And, of course, there are apps that will help you with countdown timers and other fun ways to display your offer in the Shopify app store. The benefits. So now that you know how to up your average order value, here's why it's important. It increases revenue and profit. When the average order value rises, you'll see an increase in revenue and profit. That's money you can reinvest into your business.

It's a cost-effective marketing return. When your average order value goes up, your marketing spend becomes more profitable. And an obvious benefit is you'll sell more inventory. Hope you found these four easy ways to increase your average order value useful. You've seen them before because they work, so give them a try. To get you started, we've included helpful links in the notes below.

I hope you found this video helpful. Thanks for watching.

For ideas on bundles, check your store’s data to see what your customers purchased together most often.

Check out the Shopify app store for upsell and cross sell app options. Remember, some of the same upsell apps also offer bundles so you can try different things to see what works.