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Increase Average Order Value for Your eCommerce Store


Increase Average Order Value for Your eCommerce Store


If you can successfully increase Average Order Value (AOV) for your eCommerce store, you will have a direct positive impact on your bottom line. Increasing AOV is not easy but it’s not difficult either. The thought process behind it is very simple. You sell more, you make more! That’s all there is to it.

According to recent data from Statista, the average order value for US online shopping in Q1 of 2015 was $78.30. While this amount is not standard for all industries, it still provides a good indication of the average order value. Depending on your industry, the AOV may be higher or lower, but the formula to increase average order value will still apply for most businesses.


There are tried and tested ways to increase average order value that work as long as you stick to the formula and are consistent in it’s application. It’s no rocket science!


This is what you need to do to increase average order value for your eCommerce store.



1. Get More Repeat Customers

Repeat customers are those that keep coming back to your eCommerce store to buy more of your products. These repeat customers represent only 8% of total eCommerce site traffic but they also represent 40% of online revenue. Also, you must bring in about 5 new customers to equal the revenue of 1 repeat customer. This is according to an Adobe study from 2012 (PDF). The study further states that repeat customers buy more and account for more revenue during the holiday season.

If you are marketing and advertising online, you must set aside some of your marketing budget to get in touch with your past shoppers to get them to become repeat customers. If they bought from you before and they had a good experience, then there is no reason for them to not come back and buy more.

You must increase communication with your repeat customers during the holiday season so that they the will buy more. They are already looking for gifts to purchase, so why not get them to buy from you. At the same time you get to increase average order value as repeat customers tend to buy more than newly acquired customers.

Related: Web Personalization Can Increase Repeat Customers and Brand Loyalty


2. Offer Free Shipping Above a Certain Cart Amount

As many as 40% of shoppers will add on more products to their cart if they get free shipping above a certain dollar amount. For example, if you offer Free Shipping for orders above $50, a shopper with $40 worth of products will add on more products to reach $50 to get free shipping. They would rather get something more instead of paying for shipping. It works with the majority of shoppers.

Make sure that you promote and advertise your Free Shipping offers on all pages of your online store and website, from the product pages all the way to check out. In your email marketing, display your Free Shipping offer prominently so that it acts as a hook to reel in your repeat customers.

Related: 4 Easy Ways to Save Money on Holiday Shipping


3. Promote Limited Time Offers

Limited time offers can encourage shoppers to add on to their order because they feel that they will miss out if they don’t. You could have certain products on sale for a limited time. Advertise these products on related product pages and also at check out for maximum effect. You could also bundle in a limited time offer with free shipping over a certain dollar amount. 2 offers are always better than one. Your customer will be almost compelled to get the limited time offer and free shipping. They get a great deal and you get to increase average order value.

Related: 9 Ways to Use Offers, Discounts and Deals to Drive Traffic to Your eCommerce Store


4. Offer Bundle and Volume Discounts

When you give more choice to your customers, they will buy more. Offer Volume discounts if you sell everyday items, like consumables, that a customer would use regularly and will need replenishing in the near future. For example, printer ink, shampoos, beauty creams or lotions. Have a buy 3 get 1 free sale on such items. The customer will be buying such items in the near future, why not buy it now at a steep discount and store it.

Or you could bundle complementary products into a single package deal like soaps, shampoos and moisturizers. If you sell electronics, you could bundle a smartphone with screen protectors, cases and an extra charger or even App store credits.

Bundling and volume discounts help increase average order value for you and give excellent value to your customers.

Related: Get Current Customers to Buy More from Your eCommerce Store


5. Highlight Customer Reviews

Customer reviews of your products and services are a great tool to instill more confidence in repeat customers to go ahead and buy more from your online store. Positive reviews correlate to a good product that is worth its price. Make sure that your customer reviews and testimonials are prominently shown in product pages and also in a dedicated Customer Reviews and Testimonials page. If possible show reviews (with 4 stars or more) related to the products that a customer has in their cart and also show reviews for related products.

Not only do customer reviews help increase AOV but they also help to convert browsers into buyers. You get new customers and you also get current customers to buy more.

Related: Excellent Customer Service


Bottom Line

Use offers, discounts, free shipping and customer reviews to increase average order value for your eCommerce store. These are easy to implement and will definitely affect your bottom line and increase profits.



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