{"id":30798,"date":"2022-04-14T15:23:21","date_gmt":"2022-04-14T15:23:21","guid":{"rendered":"https:\/\/thedotsociety.be\/2023\/\/?p=30798"},"modified":"2024-02-07T08:41:02","modified_gmt":"2024-02-07T08:41:02","slug":"6-ways-to-grow-the-average-order-value-of-your-ecommerce-store","status":"publish","type":"post","link":"https:\/\/thedotsociety.be\/en\/6-ways-to-grow-the-average-order-value-of-your-ecommerce-store\/","title":{"rendered":"6 ways to grow the Average Order Value of your eCommerce store"},"content":{"rendered":"<div id='av_section_1'  class='avia-section av-1apex37-5038bfc65652f69ad60341aaf4e819f3 main_color avia-section-default avia-no-border-styling  avia-builder-el-0  avia-builder-el-no-sibling  avia-bg-style-scroll  container_wrap fullsize'  ><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-30798'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column av-mee5b7-adcbd842e3b3e4f37943fe3961cb8482 av_one_full  avia-builder-el-1  avia-builder-el-no-sibling  first flex_column_div '   ><section  class='av_textblock_section av-kyss80op-d63a7e9d9bcf2a1df81d779060b1d638 '  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock '  itemprop=\"text\" ><h3><span style=\"font-weight: 400;\">1.\u00a0 \u00a0 \u00a0 \u00a0What is average order value?<\/span><\/h3>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">You have your own online store and generate a high amount of website traffic, a good conversion rate, and a strong revenue stream. You might now be quick to say that these are the most important metrics to measure the success of your online store. But not so fast! There is another very essential metric to monitor as you grow your online business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This other important metric is the <\/span><b>average order value (AOV)<\/b><span style=\"font-weight: 400;\">. Average order value (AOV) measures the average euro amount spent every time a customer buys something on your website. To calculate your website\u2019s AOV, simply divide total revenue by the total number of orders.\u00a0\u00a0<\/span><\/p>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at a simple example: if your online business has a revenue of \u20ac3.000 split between 100 orders, your average order value is \u20ac30. In other words, a customer coming to your website spends \u20ac30 on average when they purchase something.<\/span><\/p>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">But why is average order value so important?\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher profits<\/b><span style=\"font-weight: 400;\">: every euro you increase your average order value by is basically pure profit when assuming that your expenses remain fairly constant.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher inventory churn<\/b><span style=\"font-weight: 400;\">: selling more inventory faster is always good for business. You want a healthy flow of products to keep your inventory from piling up<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Faster profitability: <\/b><span style=\"font-weight: 400;\">if you have business debts, or spent heavily on a marketing campaign, you\u2019ll reach a positive return on investment much faster with a higher AOV.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Valuable insights<\/b><span style=\"font-weight: 400;\">: AOV provides you with critical insights into the behavior and buying patterns of your customers.<\/span><\/li>\n<\/ul>\n<h4><\/h4>\n<h3><span style=\"font-weight: 400;\">2.\u00a0 \u00a0 \u00a0 6 ways to increase your average order value<\/span><\/h3>\n<h4>Create an order minimum for free shipping &amp; other gifts<\/h4>\n<p>Free shipping is a commonplace but still a highly effective way to get customers to spend more. So instead of offering free shipping to all your customers, offer it only for order sizes above a certain value. Here it is best to set that amount above your average order value. Consider what you expect to pay for free shipping, and set the baseline value above that extra amount.<\/p>\n<p><span style=\"font-weight: 400;\">For example, suppose your average order size is \u20ac40, and shipping costs are around \u20ac5. Offer to make your shipping free for all orders above \u20ac55. With that, you will motivate some people to spend a little more to get over that hump, and you\u2019ll still be increasing profits even after having to pay for free shipping. Here, however, it is important to follow up on your abandoned carts properly after setting a minimum order value for free shipping.<\/span><\/p>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">TIP: Use a promotion bar on your website where you make it obvious that you are offering a minimum order incentive. Also mention the minimum order value for free shipping in the product pages and on the checkout page.<\/span><\/p>\n<h4><span style=\"font-size: 18px; font-weight: 600;\">Bundle products or create packages<\/span><\/h4>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">If you want customers to purchase more items, try creating product bundles that cost less than if the same items were purchased individually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The customer is getting a deal, and you\u2019re making a bigger sale and moving more inventory.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are different approaches to bundling products:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One great approach is to offer a package of products that create the <\/span><b>all-in-one solution for the desired experience<\/b><span style=\"font-weight: 400;\">. Here, the skincare boxes from organic skincare brand C\u00ceME are a very good example. They offer a total package of three skincare products to treat dry skin, combination or oily skin, or sensitive skin. When buying a skincare box you save \u20ac7.<\/span><\/li>\n<\/ul>\n<h4><img decoding=\"async\" class=\"alignnone wp-image-30800 size-large\" src=\"https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-1030x514.png\" alt=\"\" width=\"1030\" height=\"514\" srcset=\"https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-1030x514.png 1030w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-300x150.png 300w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-768x383.png 768w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-1536x766.png 1536w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-1500x748.png 1500w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53-705x352.png 705w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.00.53.png 1896w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can also empower customers to create their own bundles by allowing custom products or packages that let them choose which features or add-ons they want in their order.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bundle products you know people often buy more than one piece at a time. You can do this for example in a buy one, get the second one for free formula. A good example here is Hunkem\u00f6ller with their buy two bras and get the third one for free.\u00a0<\/span><\/li>\n<\/ul>\n<h4><img decoding=\"async\" class=\"alignnone wp-image-30802 size-large\" src=\"https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-1030x415.png\" alt=\"\" width=\"1030\" height=\"415\" srcset=\"https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-1030x415.png 1030w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-300x121.png 300w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-768x309.png 768w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-1536x619.png 1536w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-1500x604.png 1500w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03-705x284.png 705w, https:\/\/thedotsociety.be\/wp-content\/uploads\/2022\/04\/Schermafbeelding-2022-04-14-om-17.01.03.png 1891w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/h4>\n<p><span style=\"font-weight: 400;\">If you are interested in adding product bundles to your store, you can check out a range of bundling apps for Shopify <\/span><a href=\"https:\/\/apps.shopify.com\/search?locale=nl&amp;q=bundles\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\"> and for WooCommerce <\/span><a href=\"https:\/\/woocommerce.com\/products\/composite-products\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4><span style=\"font-size: 18px; font-weight: 600;\">Upsell or cross-sell in effective ways<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">It\u2019s all about nudging the customers to buy complementary products (=cross-selling) or upgraded versions (= upselling) of the products they already intend to purchase. The best strategy is to capitalize on the positive experience your customer had, and get them to spend a little more on something else.<\/span><\/p>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">Here are some key points to consider when setting up your upselling or cross-selling strategy:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Don\u2019t cross-sell too much, recommend as a friend would. It\u2019s important that your cross-sells feel helpful and genuine. Instead of simply suggesting other popular products from your store, wisely choose some products that fit perfectly with the item in your customer\u2019s cart, such as accessories or additional items. For example, when purchasing a plant, you might offer a pot in which the plant the customer wants to purchase would fit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer low-value products when cross-selling to increase the likelihood of purchase. If someone is purchasing a product of \u20ac50-\u20ac100, it\u2019s hard to convince them to purchase another \u20ac100. However, it would be much easier to cross-sell a product of \u20ac20 that complements their purchase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer post-purchase cross-sells; if you are worried about affecting your conversion rate when bundling products, you could always test by implementing post-purchase cross-sells first. By doing this, you can use this data to inform you which products are being bought together and then create a bundle pre-purchase for the same product.<\/span><\/li>\n<\/ul>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">Yet again, <\/span><a href=\"https:\/\/apps.shopify.com\/search?locale=nl&amp;q=product%20recommendations\"><span style=\"font-weight: 400;\">Shopify<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/woocommerce.com\/posts\/woocommerce-upselling-strategies-extensions\/\"><span style=\"font-weight: 400;\">WooCommerce<\/span><\/a><span style=\"font-weight: 400;\"> have some interesting apps available to implement your upsell and cross-selling strategy smoothly.<\/span><\/p>\n<h4><span style=\"font-size: 18px; font-weight: 600;\">Loyalty program<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Do you sell consumable products &#8211; something customers need to repurchase, like skincare, granola, or something else? Then it might be a good idea to set up a loyalty program.<\/span><\/p>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">A customer loyalty program enables customer retention and helps you forge relationships with your customers and increase the customer lifetime value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the customer has an advantage by earning points through your loyalty program, the average order value might increase significantly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Want to learn more about loyalty programs? Read our <\/span><a href=\"https:\/\/thedotsociety.be\/2023\/\/en\/loyalty-program\/\"><span style=\"font-weight: 400;\">previous article<\/span><\/a><span style=\"font-weight: 400;\"> about the importance of a loyalty program for your online business.<\/span><\/p>\n<h4><span style=\"font-size: 18px; font-weight: 600;\">Flexible return policy<\/span><\/h4>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">73% of shoppers say that their returns experience affects how likely they are to buy from a retailer again (<\/span><a href=\"https:\/\/www.ecommercebytes.com\/2019\/11\/04\/ups-expects-a-26-increase-on-peak-returns-day\/\"><span style=\"font-weight: 400;\">UPS survey<\/span><\/a><span style=\"font-weight: 400;\"> from 2019). This emphasizes that now more than ever, it\u2019s important to be both as transparent and as flexible as possible with your customers. By creating a flexible return policy you might help ease any anxieties or hesitances that potential customers may have about making a purchase from you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also important to display your return policy in a clear way to your customers. Communicate your return policy on your website banners, product pages, your own social media accounts, and your purchase confirmation emails.<\/span><\/p>\n<h4><span style=\"font-size: 18px; font-weight: 600;\">Limited time offers<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Urgency can spark the need to add more items to your cart. No one wants to miss out on a great deal. A best practice here is to offer short-term discounts or a free gift with a 24-72 hour window to increase your average order value. Here a small note that this increase in average order value is likely to be rather short term.\u00a0<\/span><\/p>\n<h4><\/h4>\n<h4><\/h4>\n<p><span style=\"font-weight: 400;\">Are you curious about rolling out one or more of these strategies to increase your average order value after reading this article? But don&#8217;t know where to start? 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