Upsell and cross-sell

14 Ways to Increase AOV of Your Shopify Store: Complete Guide

Last updated on

April 10, 2024

Higher AOV, bigger profits! That's the simple truth. A higher AOV translates to more money per transaction, leading to increased revenue and a happier bottom line.

But it's not just about the immediate gain. Increasing your AOV also means:

  • Higher Customer Lifetime Value: Customers who spend more per order are more likely to come back for more.
  • Improved Margins: More revenue per sale means you can afford higher margins.
  • Better Inventory Management: By understanding customer buying patterns, you can optimize your inventory and avoid overstocking.
  • Increased Customer Loyalty: Rewarding customers for spending more fosters loyalty and encourages repeat business.
  • Reduced Marketing Costs: It's always cheaper to retain existing customers than acquire new ones.

Increase your AOV by 20% with an upsell and cross-sell app.

How to calculate Average Order Value 

You can calculate your average order value in 3 easy steps:

  1. What's your total revenue for a specific period? (e.g., $30,000 for a month)
  2. How many orders did you have in that same period? (e.g., 1,000 orders)
  3. Divide your total revenue by the number of orders. (e.g., $30,000 / 1,000 orders = $30 AOV)

That's it! Your AOV is $30.

The formula for calculating AOV is:

This simple metric helps you understand your customers' purchasing habits and identify opportunities to boost sales. Track your AOV over time and compare it year-over-year to see if your strategies are working.

What is a Good AOV?

According to a survey of 2,216 Shopify stores, on average, Shopify stores see an AOV of $85. The top 20% of stores achieve an AOV of $192 or more, while the top 10% reach an impressive $311 or higher.

The average AOV across all e-commerce businesses is $129.23. But consumers purchasing electrical and commercial equipment online spend a staggering average of $230.51 per checkout, representing a significant 51.91% increase compared to 2021.

Here are 14 Ways to Increase AOV for Your Shopify Stores 

1. Free Shipping and Express Delivery

Customers love free shipping. It's a simple yet powerful way to boost your average order value (AOV).

Here's how to do it:

  1. Set a free shipping threshold: Determine the minimum amount customers need to spend to qualify for free shipping. For example, set a threshold of $130 for an AOV of $100.
  2. Offer free shipping on all orders above the threshold: This incentivizes customers to spend more to reach the threshold.
  3. Add a notification reminding customers about the free shipping offer: Let them know how much they need to spend to qualify.

By implementing these simple steps, you can unlock the power of free shipping and watch your AOV soar!

Install our app, Shipeasy, to customize shipping costs and easily implement free shipping thresholds. Get your free-trial now.

2. Upselling, Cross selling, and Downselling 

Boost your average order value (AOV) instantly with these 3 simple strategies:

1. Offer upgrades: Suggest more expensive or premium versions of the product they've chosen. This is upselling.

2. Recommend relevant products: Show customers items that complement their purchase, like a handbag to go with an outfit. This is known as cross-selling.

3. Provide alternatives: If they decline the upgrade, offer a cheaper option that still fits their needs. This is downselling.

By using these tactics, you can encourage customers to add more items to their cart, increasing your AOV and profits.

Install our app, Selleasy, to upsell and cross sell your products. Get your free trial now. 

3. Frequently Bought Together Bundle

1. Offer "Buy More, Save More" deals: Entice customers with offers like "Buy 2, Get 1 Free" or "Buy 3, Get 1 Free".

2. Choose smart free gifts: Select complementary items that won't significantly impact your profit margins. For example, offer a small bracelet (around $2) as a free gift with a purchase.

3. Price bundles for profit: When offering "Buy 3, Get 1 Free" deals, ensure the individual product prices still generate a profit when sold in the bundle.

4. Bundle relevant products: Group items that go well together, like a shirt and pants, or offer different variations of the same product (e.g., different colors or sizes).

By implementing these bundle strategies, you can create irresistible offers that boost your AOV and leave your customers happy.

4. The More You Buy, The Less You Pay: Offer Volume Discounts

Discounts are great, but discounts with a twist are even better!

  • Reward big spenders: Offer tiered discounts that increase with the purchase amount. For example, get $10 off $100, $15 off $150, and $25 off $200 or more!
  • Set a minimum spend threshold: Motivate customers to add more items by offering discounts only for larger orders. Get $10 off when you spend $100 or more!

These simple tweaks to your discount strategy can unlock significant AOV growth and leave your customers happy with their savings.

Install our app, Dealeasy, to offer volume discounts for your customers. Get your free trial now.

5. Treat Your Customers Like VIPs With Personalization

Send personalized email offers to highlight products your customers love. Remind them of special deals based on their purchase history.

Show customer reviews and testimonials to build trust and encourage repeat purchases.

Reclaim abandoned carts. Send friendly reminders about items left in carts.

Recommend products based on individual preferences and interests to create a personalized shopping experience.

By focusing on personalization, you can build strong customer relationships, boost engagement, and ultimately, increase your AOV. 

6. Optimize Your Checkout Process

Pre-Checkout:

  • Showcase relevant promotions and personalize your homepage banner.
  • Use on-site personalization throughout your store to create a tailored shopping journey for each visitor.

During Checkout:

  • Offer clear and transparent information about shipping options and estimated delivery times to reduce cart abandonment.
  • Offer cross-sells using checkboxes to suggest complementary products.

Post-Checkout:

  • Use pop-up offers for high-end add-ons, tempting customers with upgrades at exceptional prices.
  • Forrester Research shows upselling can boost your total revenue by 10-30%, making it a powerful tool for AOV growth.

7. Have a Return/ Refund Policy

This will make them feel safe with every single purchase they make. Offer them the choice to return with a total refund for various reasons.

They can either: 

  • return it and get a total refund, or
  • exchange it for a new product.

But limit the number of days within which a return and refund policy is applicable. 

Highlighting your return and refund policy will encourage customers to purchase more from your store. And it will also give them a guarantee that they have value for their money at your store with easy returns. 

8. Offer Live Chat Support for Quick Queries

It’d make your Shopify store more customer-friendly. 

It also enables you to stay connected with your customers throughout the process. And this gives them a sense of value.

They will want to buy more from you with this way of instant communication and can increase your AOV. 

9. Use Gift Cards

For example, if your retail price is $30 or more, offer a free $5 gift card to your customers. They can use it on their next purchase. This will motivate them to purchase again. 

But make sure that your product price is high enough. And ensure that your gift card will not offer a free purchase to your customer. Also avoid offering this deal throughout the year. Do it only during off-seasons.

As gift cards encourage future purchases, they will help cut down costs on future ad spend.

10. Execute First Time Offers 

If you’re a relatively new brand, most customers will be first-time visitors. 

Offer deals like one-time discounts to those who buy multiples of a popular product or an exclusive bundle to encourage repeat purchases. 

If your customer orders several items, it’ll be even easier to make them to shop again. 

11. Set up a Customer Loyalty Program 

A loyalty program motivates customers to order more. 

Reward repeat customers, or those with higher order value with points/ discounts.

They can even become your brand evangelists, which will greatly improve repeat sales and your AOV. 

12. Offer Limited Time Deals

For example, put up a 48–hour deal with a free gift or a special discount to make customers buy within that time frame. 

It may not increase the average order value for a long duration. But the urgency it creates can increase conversion rates. 

Such deals are particularly helpful during slower periods/ off-seasons. 

Don’t forget to promote these deals on social media or to include a banner notification on your website.

13. Show Savings With Bulk Orders

Show people that they can save money if they buy multiple items. More they buy, the more the savings per item.

You can display their overall savings, as they increase the cart quantity - an amazing strategy to reduce cart abandonment.

14. Creating A Game Or A Contest 

You can run contests in your Shopify store and award prizes for those customers who buy frequently. 

More they buy, the bigger the prizes!

This will incentivize purchases. Win-win for both parties!

Less sales? Try upselling to increase your AOV by 20%.

Frequently Asked Questions (FAQs)

Why is my AOV decreasing?

A low or decreasing AOV means your transaction revenue is lower than ideal. It is an indicator that you need to refine your strategies by adding better options. 

Upselling and Cross selling is the best and the quickest way to increase your AOV by encouraging your customers to make repeat purchases. 

How do I increase my orders on Shopify?

  • Know your customers
  • Know what they like
  • Know what they expect

And offer them exactly that.

Make your customers your brand evangelists.

How?

  • Ask testimonials from your happy customers
  • Share it on your social media channels
  • Don’t forget to tag them - so that they can share it with their friends (your potential customers)

Doing this is a good starting point to increase your orders. 

Increase the AOV of Your Shopify Store Now!

Are you ready to try out the strategies above to increase the AOV of your Shopify store?

You can begin with:

  • Smart Upsell and Cross sell strategies, 
  • Combined with a personalized experience, and 
  • Free shipping options

It can help you get back on track to increase the order volume of your store.

Get started on it today!

Also read:

10 Reasons Why Shopify Stores Fail and How to Avoid Them

Written by
Abishek Baskaran
Co-founder
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