How to increase AOV in ecommerce?

Written on September 25, 2024. Posted in Ecommerce.

For any ecommerce brand, making sure customers spend more per order is usually something ecommerce owners focus on. And the “thing” they’re trying to increase is called Average Order Value (AOV).

AOV measures the average amount of money customers spend each time they place an order. Getting this number higher means generating more revenue from your existing customers – which is way easier than constantly attracting new ones. To be clear – you should do both things simultaneously, but let’s see how to increase AOV.

Why is the AOV important

A higher AOV means you’re getting more value from every single transaction. Instead of spending extra on marketing or ad campaigns to bring in new customers, you can increase your revenue by having the same customers buy more. This makes AOV one of the most efficient ways to grow your ecommerce revenue and business.

When your AOV increases, you can invest more in marketing.

Let’s say your AOV goes up. Now, you can justify spending more on ads or customer acquisition efforts. More revenue per order means you can grow your brand without constantly chasing new customers. Let’s repeat this once again: you should work on both, simultaneously.

Customer Lifetime Value (CLV) is another area that gets a boost from a higher AOV. When your customers spend more per visit, they’re more valuable over time. That means your retention efforts, like loyalty programs or email marketing, are more rewarding. Loyal customers who buy more often are what every ecommerce brand dreams of.

How to increase AOV – simple ways

Let’s explore some practical ways ecommerce brands can increase AOV in 2024.

Upsell and cross-sell

One of the easiest ways to get customers to spend more is through upselling and cross-selling. Upselling is when you suggest a more expensive version of what the customer is already looking at, like a more extensive package or better functionalities. Cross-selling is about recommending additional items that complement the purchase.

For example, if someone’s buying a basic blender, suggest a high-powered version or offer them a set of smoothie cups to go with it. This can happen on the product page, during checkout, and in follow-up emails or newsletters. The key is to make sure the recommendation actually adds value and isn’t just about pushing more expensive items. Customers appreciate helpful suggestions. And yes, although the goal is to earn more, you shouldn’t be focused only on that.

Product bundles

Similar to cross-selling, product bundling is a great way to increase AOV. Offering multiple related products at a slight discount encourages customers to buy more. This gives the customer more value while increasing the total order size.

Brands are getting more creative with their bundles in 2024, especially around holidays or special events. A “Back-to-School” or a “Fall Essentials Kit” can feel relevant and useful. Of course, do it if it relates to your brand and strategy.

Black Friday is approaching, so maybe it’s time to rethink your strategies. We’re preparing a huge calendar plan that acts as a guide to all the steps you can take to increase your revenue.

Free shipping thresholds

We all know free shipping is a huge motivator for online shoppers. But instead of offering it on every order, set a minimum order value to qualify. For example, “Free shipping on orders over $50” encourages customers to add a few more items to hit that target. Most people would rather buy an extra product than pay for shipping! It’s similar to the ‘girl math’ saying.

Make sure you display this offer prominently throughout your website, especially in the cart and during checkout. Customers need that little reminder to see how close they are to scoring free shipping. And if you’re thinking about how to increase AOV, this is a simple but effective way.

Time-limited magical offers

Creating a sense of urgency through limited-time offers is another smart way to get customers to spend more. Flash sales, exclusive discounts, or promotions available for a short time can push people to make quicker decisions – and larger purchases.

For example, you could offer 15% off when customers spend over $100, but the offer only lasts for 24 hours. Use countdown timers on your website or in emails to amplify that urgency. When people feel like they’re about to miss out, they’re more likely to add extra items to their cart.

Loyalty programs

Loyalty programs are an excellent tool for increasing AOV. Customers are more likely to increase their order size when they know they’ll be rewarded for spending more. Offer double points on orders over a certain amount or give exclusive discounts to top-tier loyalty members.

Make sure you regularly promote the benefits of your loyalty program – everywhere: on your website, in marketing emails, and through social media. The more customers know how to earn rewards, the more they’ll want to shop with you, increasing both AOV and overall loyalty.

Final thoughts

How to increase AOV? It isn’t about tricking customers into spending more. It’s about offering them more value. With product recommendations, creative bundles, or simple free shipping incentives, ecommerce brands can get customers to add a little extra to their cart.

Focus on these strategies, and you’ll start seeing a rise in your AOV, all while keeping your customers happy and loyal. If you need help with ecommerce-related stuff, contact us.