13 Proven Ways to Increase Average Order Value

13 Proven Ways to Increase Average Order Value

What is average order value?

Average order value (AOV) is a key metric in eCommerce that measures the average total of every order placed with a business over a defined period of time. It is calculated by dividing total revenue by the number of orders.

AOV is used to understand customer behavior and to frame marketing and pricing strategies. Businesses aim to increase the average order value to maximize revenue from each customer transaction. This can be done through various techniques such as upselling, cross-selling, bundling products, or offering free shipping on orders over a certain amount.

Importance of average order value

Average order value (AOV) is a significant metric for businesses, particularly in the eCommerce sector, for several reasons:

Understanding customer behavior

Average order value (AOV) helps with for understanding your consumers' purchasing habits and behavior. It offers information on the typical amount of money your clients spend during a single transaction. You can utilize this information to segment your customers, modify your marketing strategy, and enhance the customer experience.

Evaluating pricing and marketing strategies

AOV is a great tool for assessing how well your pricing strategies are working. If you execute a new pricing plan or start a marketing campaign and see an increase in your AOV, it's a clear indication that the new strategy is effective. A decrease, on the other hand, may indicate that your strategies are not having the desired impact.

Measuring business performance

AOV is helpful in evaluating the overall success and health of your business along with other metrics like customer lifetime value (CLV) and conversion rate. You can use it to establish benchmarks, track your progress toward your objectives, and get insights for growth. 

Identifying upselling and cross-selling opportunities

A higher AOV frequently indicates effective cross- or up-selling efforts. You can use this measure to track which products are frequently bought together and, as a result, can be combined for promotions. Additionally, it helps determine goods that can be successfully cross-sold or upsold.

Revenue generation

In the end, increasing AOV is all about increasing revenue. Businesses can drive their revenue by enticing customers to spend more money each time they make a purchase without necessarily needing to spend money on attracting new customers.

How to measure average order value

Measuring average order value (AOV) is quite straightforward and can be done using a simple formula. Here's the process:

Calculate total revenue: This is the total amount of money made from all sales during a specific time frame. Don't forget to include all sales-related income; but do not include money from other sources, such as interest, investments, or secondary businesses.

Count the total number of orders: This is the total quantity of orders placed during the same period.

Divide total revenue by total number of orders: This calculation gives you the average order value.

AOV = Total Revenue / Total Number of Orders

For example, if your total revenue for the month of January was $10,000 and you had 200 orders, your AOV for January would be $50.

Remember, the period you choose to calculate your AOV can be adjusted based on your needs. It can be calculated on a daily, weekly, monthly, or annual basis. AOV can also be calculated for certain occasions or times of year, such as Black Friday deals or the holiday shopping period.

The majority of eCommerce platforms and analytics platforms, like Google Analytics, will calculate this figure for you automatically, so keep that in mind.

Formula to calculate average order value is as follows: Total amount of revenue from sales divided by the number of orders placed. The result is multiplied by 100.
Formula to calculate average order value

13 ways to increase average order value

Increasing AOV can significantly boost revenue without needing to acquire new customers. 

Here are some strategies to increase AOV:

  1. Upselling and cross-selling
  2. Allow customers to shop the look
  3. Product bundling
  4. Volume discounts
  5. Free shipping threshold
  6. Loyalty programs
  7. Gift cards
  8. Limited time offers
  9. Personalized recommendations
  10. Show savings on bulk buys or bundles
  11. Offer a flexible returns policy
  12. Market to buyer “heavy” users
  13. Build trust and authority
  14. Offer great customer support

Upselling and cross-selling

Upselling encourages customers to buy a higher-end product than the one they were considering while cross-selling prompts customers to buy related or complementary items. Both approaches can substantially raise the AOV.

Allow customers to shop the look

Shop-the-look experiences allows customers to view a whole outfit or product combination and add the featured items to their cart in a single click. This way, customers can buy multiple products via the shoppable look which they might have not bought otherwise. These shop-the-look experiences can increase the average order value since they result in a larger sale. 

Check out the video to discover how to boost average order value by creating shop-the-look experiences with Storyly Stories. 

Product bundling

Customers may spend more if a product is offered in a bundle at a price lower than the cost of the items alone. Customers acknowledge that they are receiving a deal, and businesses benefit from increased sales.

Volume discounts

Offering discounts for buying items in bulk can entice customers to make more purchases, hence raising the AOV.

Free shipping threshold

Offering free shipping when a predetermined order threshold is met can encourage buyers to add additional items to their cart to reach that amount. You could, for instance, provide free shipping on purchases of $50 or $100.

Loyalty programs

Higher order values may be encouraged by rewarding customers who spend more. Customers may be encouraged to increase their spending in order to earn more  points, tiers, or rewards.

Gift cards

Promoting gift cards can also boost your AOV because people often spend more than the value of the gift card when they redeem it.

Limited time offers

Customers may purchase more in a single order because limited-time incentives make them feel a sense of urgency. This may be a temporary offer or an exclusive item that is only available for a short while.

Personalized recommendations

Personalizing product recommendations based on consumer information can increase sales. Customers are more inclined to add items to their order if they come across goods that match their preferences and behaviors.

Show savings on bulk buys or bundles

Make sure buyers can easily see the savings they will receive from purchasing in bulk or as a bundle. A sense of getting a good deal may lead to increased purchases.

You can encourage your customers to spend more during each transaction by utilizing these tactics, which will raise your average order value. Just bear in mind to pay close attention to your metrics to determine which tactics are most effective for your particular business.

Offer a flexible returns policy

 When customers have the confidence that they can return products after the delivery, their perceived risk of buying decreases, which motivates them to increase the number of items they order. A satisfying experience can also boost customer loyalty and the possibility of repeat purchases.In order for this tactic to be successful, consumers need to be provided with transparent and efficient information at the beginning. This way, the flexible return policy can help increase average order values while preventing an increase in return rates. 

Market to buyer users

Marketing to customers who frequently make significant purchases or are regular frequent buyers can improve AOV. These customers may be more willing to add extra items to their orders if you offer them exceptional discounts or deals since they already value your products or services.

Build trust and authority

Customers are more likely to buy more from businesses they regard as trustworthy and credible. By providing high-quality products, first-rate customer support, and being transparent about your business operations, you can build trust in your audience. earn people's trust. This process involves sharing expert advice, producing high-quality content related to your products or industry, and showcasing positive customer reviews and testimonials. Customers are more likely to make larger purchases when they respect and trust your company.

Offer great customer support

Excellent customer service may greatly enhance the shopping experience, increasing customer loyalty and order values. Customers feel more at ease making larger purchases when they know they can rely on quick, helpful solutions to their questions or concerns. A number of channels, including live chat, email, phone assistance, and even social media, can be used to do this. The key is open, supportive communication.


Deniz Tasyürek

Content & Brand Marketing Strategist at Storyly. Writes about mobile user behavior, user engagement, and retention. A genuine Potterhead. She also loves succulents, cats, and aerial yoga.

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