How to Increase Average Order Value (AOV) on Your Shopify Store

Introduction

The Average Order Value (AOV) is the amount spent by the customers at the time of order on your website. This is an average amount and it is calculated through total amount spent(store revenue) and total order placed. If you are new in the shopify ecommerce business then this blog will help you to understand about Average Order Value and the ways to increase this. The basic formula of calculate this:

Average Order Value = Total Revenue / Total Number of Orders

For example if your store’s total revenue is $3000 on 100 orders then the average order value will be $30. That means your customer spent an average $30 each time when purchasing from your store.

You can also track your AOV using google analytics by enabling the feature of ecommerce tracking in your Google Analytics account. To boost Shopify AOV, of your shopify store you can provide discounts on large purchases, create bundle products and use various Shopify upselling strategies and Shopify cross-selling techniques.

Advantages of Increase AOV

If you increase your online store’s AOV that does not  mean you get advantages immediately but you can get many advantages slowly. There are some advantages listed below.

• Increase Customer Loyalty: If you reward the customer for increasing AOV then it increases the customer loyalty and  chance of repeat purchase it is good for your business growth.
• Reduce Marketing Costs: Making new customers is costly compared to retaining existing customers. If your customers are loyal then you do not need to depend on new customers and more marketing.
• Better Inventory Management: You can understand the buying patterns of your customers and easily manage your store inventory according to need. It optimizes the inventory and avoids overstocking also.
• Higher Margins: If you successfully increase the AOV that means you can afford higher margins on product selling.
• Create Customer Lifetime Value : If the customer spends more amount on per order that means it increases the chance of coming back and repeat purchases.

Ways to Increase Average Order Value (AOV)

Using some business strategies you can increase AOV of your business and it is most important for growth and high revenue of your store. There are some ways of increase AOV are given below:

Offer Free Shipping on Minimum Order Value

This is a powerful way to increase AOV because every customer does not want to give extra money for shipping, by implementing this you can set free shipping on a minimum amount of purchase.

For example if you set free shipping on above $50 order then if your customer purchases products of $40 it will charge shipping cost that time the customer to save the shipping cost, will purchase more and fulfill the minimum amount required for free shipping. This tactic is effective for Shopify cart value optimization.

In shopify you can easily set the free shipping on minimum order value or minimum items. It encourages the customers to purchase more.

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Create Upselling and Cross-Selling Opportunities

The other greatest method for increasing the AOV is upsell , cross sell of products. In shopify you can easily offer upsell or cross sell. By default shopify provides a “you may also like” section on the product page that works according to shopify’s algorithm. You can increase AOV using these strategies:

• Upselling: Show customers a more advanced or expensive version of the product they are interested in.
• Cross-Selling: Suggest related products that complement the items customers are already buying. For example, if a customer purchases a mobile phone, suggest a screen protector or phone cover.
• Downselling: Offer cheaper alternatives that still meet the customer’s needs if they are not interested in the more expensive options.

Shopify’s default “You may also like” section can help with these strategies, and additional apps or customizations can further enhance upselling and cross-selling. These techniques are key to maximizing AOV in Shopify stores.

Create Product Bundles

If you want customers to purchase more products, you can create a bundle of products and can offer some discount on purchase of this bundle. This is a good way to tempt your customers to purchase more products. You can create a complete bundle and offer a discount on the bundle instead of separate products.

For example if you sell stationery products then you can create a bundle of drawing kit with drawing book, pencil, color pencils, scale, eraser etc and give a discount on bundle instead of single products. At that time for a discount, customers will purchase a complete bundle instead of separate products. This strategy helps to enhance order value Shopify.

Set Up a Customer Loyalty Program 

By creating and setting up a customer loyalty program you can increase your store revenue by 5% – 10%. This not only increases the AOV but also increases the customer retention.By offering some reward points and some cashback to your customers you can increase the chance of repeat customers.

If you are selling products that need repetition then you can create loyalty programs. For example you can create a loyalty program for daily needs or cosmetics products to increase AOV. It aligns with strategies for higher order value.

Set Up Live Chat for Customer Service

By using a live chat feature you can easily connect with your customers and help them for every queries. This is not only a better way to resolve the customer queries but also suggest products and increase average order value and sales.

If the customer is confused about purchasing the product or their feature then using live chat he can easily connect with the support team and after that he can purchase without any worry. Live chat helps customers to get their immediate queries solutions that increase the chance of sales and fewer abandoned carts. This approach supports Shopify sales tactics.

Provide Free Return/Instant Refund Facility

If you provide a free return/ instant refund facility then the customers are ready to purchase more products without any worry of return/refund. If they know there is  no return cost or no wait for refund then this encourages the customers to add more products in their cart. So we can say that by offering free return/ instant refund you can increase the average order value and revenue. This tactic is effective for Shopify promotional offers.

Offer Limited-Time Deals

Everyone knows that creating urgency increases the AOV. By creating some offers for limited time that encourage the customers for purchase. You can promote this deal with social media or banner notifications. For increasing average order value this strategy is most helpful.This is a great way to increase average cart value Shopify.

These above points will help you to increase the average order value of your shopify store. By following this you can easily increase the revenue and growth of your business.

Conclusion

Increasing the average order value of your shopify store means a strategy of improving customer experience and encouraging the customers to spend more. Use these Shopify sales tactics to boost Shopify AOV without increasing traffic on your store. Continuously test and refine your approaches to find the most effective Shopify promotional offers and Shopify cart value optimization strategies for your business.