How to Increase Average Order Value (AOV)

A higher AOV means more revenue for your business, and it can notably increase overall profitability. According to a study by BigCommerce, companies that increased their AOV by just $1 enjoyed an average revenue increase of 8% to 10%.

Here are 13 proven tactics to implement into your eCommerce strategy.

#1 Offer free shipping on orders over certain totals

Free shipping is among the key incentives for customers when shopping online. By offering free delivery on orders over a certain amount, you can encourage customers to add more items to their cart, which leads to a higher AOV.

Always put your free-shipping offer right in front of the customers - no matter whether they are newcomers to your website or have previously ordered from you.

#2 Upsell and cross-sell products

Suggesting complementary or related products at the time of purchase can increase your revenue by 10% to 30%. For example, offer a matching handbag or a shoe care kit with the purchase of a pair of leather shoes.

Here's another great execution by Timberland. Once you add boots to your cart, at the checkout you will additionally see the Before-you-go section, offering you boot care and cleaning kits, a protective wax, and laces.

#3 Bundle deals & volume discounts

Bundle promotions and volume discounts can help significantly increase AOV and sales by up to 30% (McKinsey & Company). Take advantage of this strategy, bundle related products, and offer them at a discounted price, or give a discount for large quantities of a product to encourage more purchases.

#4 Personalized product recommendations

Use previous purchase history and browsing data to make personalized product recommendations for each customer. Personalized recommendations can increase AOV by up to 30% (Epsilon).

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#5 Prominent guest checkout

Make it easy for customers to check out by streamlining the process, providing multiple payment options, and making quest checkout easy to find. Optimizing the checkout process can have a big impact on AOV, as cart abandonment rates in the case of hard-to-find guest checkout can be as high as 69.57% (Drip).

Here's one of the best executions of a prominent guest checkout by a retail giant Macy's.

#6 Abandoned cart email campaigns

Sending an email to customers who abandoned their cart can recover up to 20% of abandoned sales. Remind customers about left-behind items to encourage them to complete the order.

#7 Urgency and scarcity tactics

Create a sense of urgency or scarcity to encourage customers to make a purchase. Implement limited-time offers or flash sales to your eCommerce strategy. These tactics can increase conversions by up to 300% (Hubspot).

The legendary boot brand Timberland is all prepared for Valentine's shopping craze with limited-time offers, giving on-red-boots-only 25% off.

#8 Social proof

Showcasing customer reviews, ratings, and testimonials can build trust and encourage customers to make a purchase. 88% of consumers trust online reviews as much as personal recommendations.

#9 Loyalty programs

Offer rewards or incentives for repeat customers to encourage continued shopping and increase AOV. Loyalty program members have a 30% higher AOV than non-members (Colloquy Digital).

Also read: Last Call: 7 Revenue-Boosting Tactics to Sell to Last-Minute Shoppers

#10 Post-purchase offers

Post-purchase upsells can become a real revenue spring when offered right after a completed purchase. For example, if someone ordered a dirtbike from you, immediately target them with an offer of 30% off on a pro racer saddle if they buy it right away.

#11 Add extra service at checkout

Another great move to increase your average order value is to add product add-ons to customers at checkout. This may be a gift wrapping, a custom gift message, or insurance. These low-cost enhancements can lead to unexpected growth in profitability for your business.

Here's how Barnes & Noble, the largest bookstore in the US, adds gift-wrapping options at the very checkout.

#12 Gifts on orders over a certain total

Offer free gifts, extras, or samples to customers who spend a certain amount, turning first-time buyers into loyal customers.

#13 Upselling for partners or couples

Customers can easily respond to the offer when it’s about pleasing their loved ones with a matching product. Let’s say someone orders blue-and-white checkered pajamas from your store, you can quickly target them with the message to check out the same style for their family.

For certain niches, like beauty, footwear, underwear, and clothes, this tactic may become a real revenue booster as matching outfits are on the rise.