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Your online store is already generating sales, but you want to boost your revenue even further? Then it’s worth taking a look at your Average Order Value (AOV). Even a small increase in AOV can grow your revenue without needing to drive more visitors to your shop.
In this article, we’ll show you seven proven strategies to increase your average order value. You’ll also learn how to calculate AOV and which optimization tactics are particularly effective.
Ouick Insight: What is Average Order Value?
Average Order Value (AOV) tracks the average amount of money spent per order in an online store. It is calculated by dividing total revenue by the total number of orders:
AOV = Total revenue / Number of orders
Example:
An online shop for motorcycle parts generates a revenue of €10,000 in January with a total of 50 orders. €10,000 / 50 = €200 The average order value for the month of January is therefore €200.
Table of contents
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Before optimizing your AOV
Before implementing measures to increase your order value, you should first analyze the current state of your shop. The following metrics are particularly helpful:
current Average Order Value
Conversion Rate
Shopping cart abandonment rate
best-selling products
share of returning customers
These metrics will help you select the right optimization measures and realistically evaluate their success later on.
Why is it important to increase the average order value?
Average Order Value is an important decision metric for marketers, providing insights into shopper patterns and trends, ad spending habits, and product pricing. A retailer who offers products worth between €15 and €65 but has an AOV of €30 may find that their customers are 1) likely to buy multiple items, and 2) are mainly shopping for lower-priced products.
By monitoring your AOV regularly, you can increase marketing ROI. The higher your AOV, the more you get out of each customer. A high AOV means you earn more per paying customer, over the same period of time. So basically, you're not only recouping the money you spent on customer acquisition, but you're also becoming a more profitable business.
For example, if you know which traffic source brings in the highest revenue, you can allocate more resources to that top-performing channel and increase your AOV.
11 measures to increase the AOV
1. Free shipping
The classic optimization method: free shipping. This is the easiest and quickest way to increase order value. It's not necessarily a matter of always allowing your customers free shipping (although this is, of course, a proven way to generate purchases in the first place). Rather, you should tie free shipping to a minimum order value. If your current average order value is €45, you can advertise free shipping from a minimum order value of €60. Just don't be too ambitious here - if your customers normally shop for 45 €, you won't go for an 80 € order value just to save on shipping costs.
It's also a big plus if you add a notification in the shopping cart that shows your customers directly how many euros are still missing until the free shipping.
Why does free shipping work?
Free delivery reduces the perceived additional costs of an order. If customers are just a few euros short of the free shipping threshold, many spontaneously add another item to their shopping cart. In Shopify stores, a progress bar in the cart showing the remaining amount needed for free shipping has also proven effective.
Reading tip: Would you like to optimize your Shopify shipping? Our guide shows you how to set up the right shipping strategy and structure your logistics efficiently.
2. Sell more with discount and limited time offers
You may think that offering discounts is contradictory in increasing AOV. After all, the ultimate goal is to generate more revenue with each sale. However, just like free shipping, you won't give out discount coupons without a specific criteria. For example, you could offer a discount that can be used for a minimum order value.
When you offer time-limited discounts, you create a sense of urgency among your customers. As a result, they immediately start considering whether it's a good decision to buy now. In most cases, especially with brands that offer sale promotions only a few times a year, customers buy right away. The annoyance of not having bought early enough would be too great.
Practical tip: Set the minimum order value for discount promotions slightly above your current AOV. This creates an additional incentive to purchase without having to grant unnecessarily high discounts. Furthermore, discounts should not be permanently available. Exclusive or time-limited promotions often have a significantly stronger effect than permanent price reductions.
3. Free gifts
"Buy one, get one for free" is probably the most common type of promotion companies use in their daily marketing campaigns. Consumers like to get items for free. They are much more tempted to accept the offer if they think they can get twice as much for the same price.
When using the tactic, however, be careful about which products you choose to promote. While consumers may be riding the "free" wave, they will quickly come to their senses if the offer turns out to be impractical. You should focus on products that 1) can be used up over time, such as cosmetics, food and beverages, 2) can be used in pairs - you wouldn't buy two hammers if you only needed one for the next 10 years, right? and 3) have a margin of at least 50%.
Of course, you can also add a favorable product as a gift above a certain order value, as Latori customer Wimpanista does, for example.
You can also work with time limits to create urgency, as Delizio does with its discount promotions. However, do not restrict your customers' choices: combining products from different categories—such as linking coffee machines with capsule assortments and accessories—serves as an excellent example of how attractive bundles can be created for seasonal campaigns or specific target groups.
4. Upselling
The probability of selling to an existing customer is much higher than selling products to new customers. Upselling is the practice of encouraging customers to buy a comparable, higher-value product. So if you have a range of products in a same category but with different performance characteristics and prices, consider upselling to encourage existing customers to buy again.
5. Cross-Selling
Cross-selling means that a company sells an additional product or service to the current product that the customer has already opted for. Cross-selling refers to products that satisfy additional, complementary needs that are already being met by the original item. Sounds familiar, right? But what's the difference between cross-selling and upselling? Often the two terms are lumped together.
In e-commerce, cross-selling or upselling is often used on product pages, during the checkout process, and in campaigns. For example, on online stores, you will usually see the "You might also like this" section filled with recommendations that match your preferences and search history. This is called automatic cross-selling, which generates personalized offers for every customer who visits the store. The more you personalize the offer, the more effective your strategy - and thus the increase in sales value - will be.
Micasa also uses the cross-selling method and displays products of a similar price segment.
Reading tip: Would you like to increase your cart value? Our article shows how you can generate more revenue per purchase using clever cross-selling and product bundles.
6. Bundles
Many small businesses find success selling products and services as a package - also called a bundle. Customers equate a bundle of items with savings, even if those savings are small, making it easier for you to sell. For example, instead of selling three items for €30 each, your bundle priced at €75 would cost only €25 per item. If possible, try to keep your packages somewhat flexible; a potential customer might reject a package because they feel that only three of the six items are useful for their purposes. If you can remain flexible enough or customers can possibly put together their own packages, your chances of success are greater.
Coeur de Lion also uses bundles to offer customers attractive product combinations and to increase the average order value. Through carefully compiled sets, customers profit from a noticeable added value, while simultaneously several products are sold in one order.
A few further tips that you can consider:
Offer customers flexible payment options for high-priced bundle offers.
Sell products both individually and in a bundle. The direct price comparison clarifies the added value of the package and facilitates the purchase decision.
Communicate the savings or the additional added value of the bundle transparently so that customers recognize the advantage at a glance.
7. Create space for configurations
Some online retailers take a particularly clever step and use product customization to increase their order value. Store visitors who are interested in a product are more likely to buy a high-priced product if they have been able to help design it according to their own ideas. In addition to the fun effect of DIY, the argument of uniqueness is then also convincing. Because in the end, your customers receive a product that only exists once.
Further possibilities to increase the average order value
8. Offer quantity discounts
Not every customer wants to buy only a single product. Quantity discounts create an additional incentive to buy without you having to grant general discounts on the entire assortment. Especially for consumable articles like coffee, cosmetics, or food supplements, offers like "buy 3, save 10%" work particularly well.
9. Use loyalty programs
Loyalty programs reward returning customers for their purchases. Collecting points, exclusive benefits, or discounts motivate many buyers to make their shopping cart somewhat larger in order to reach the next reward level faster.
Reading tip: You would like to strengthen customer retention in your online shop? Our post shows how you reward regular customers with loyalty points and reward programs and sustainably increase the Customer Lifetime Value.
10. Use checkout upsells
The checkout offers an ideal opportunity to offer supplementary products. Gift wrappings, accessories, or extended warranties can be added immediately before completing the order without interrupting the actual buying process.
11. Personalized product recommendations
The more individually product recommendations are tailored to the behavior of your customers, the higher is the probability of an additional purchase. Instead of displaying the same bestsellers to every visitor, personalized recommendations can significantly increase the average order value.
Which measure is suitable for which shop?
Not every strategy fits equally to every business model. Which measure promises the greatest success depends, among other things, on your assortment, your target group, and your average order value.
| Shop situation | Recommended measure |
|---|---|
| Low product prices | Free shipping limit |
| High volume of accessories | Cross-Selling |
| Premium products | Upselling |
| Consumption products | Bundles or quantity discounts |
| Many regular customers | Loyalty program |
Conclusion
Increasing the average order value is frequently more cost-efficient than exclusively acquiring new customers. Decisive, however, is not the single measure, but the combination of various optimizations. Analyze your AOV regularly, test new approaches, and check their effects on turnover and profitability.
Frequently asked questions regarding Average Order Value
What is a good average order value (AOV)?
A generally valid benchmark does not exist. A good Average Order Value depends on your industry, your product assortment, and your pricing strategy. Important is above all to regularly analyze your own AOV and to increase it in the long term.
What is the difference between upselling and cross-selling?
In upselling, a higher-value variant of the selected product is offered to customers. Cross-selling, on the other hand, recommends supplementary products that meaningfully extend the original purchase. Both strategies can increase the average order value if they are deployed relevantly and fittingly.
Which measures increase the order value most effectively?
Among the most proven measures belong free shipping limits, product bundles, relevant cross-selling offers, and personalized product recommendations. Which strategy achieves the greatest effect depends, however, on your assortment, your target group, and the previous purchasing behavior of your customers.
How can I measure the success of my AOV optimization?
Compare your average order value before and after the introduction of a measure. Additionally, you should observe key figures like conversion rate, revenue per visitor, and shopping cart abandonments. That way you recognize whether the optimization improves not only the order value, but also the total performance of your online shop.
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