{"id":14386,"date":"2020-02-07T08:33:01","date_gmt":"2020-02-07T08:33:01","guid":{"rendered":"https:\/\/appstore.mageworx.com\/blog\/?p=1436"},"modified":"2023-01-23T11:30:16","modified_gmt":"2023-01-23T11:30:16","slug":"10-tactics-to-increase-aov-for-online-retail","status":"publish","type":"post","link":"https:\/\/www.mageworx.com\/blog\/tactics-to-increase-aov-for-online-retail","title":{"rendered":"10 Tactics to Increase Average Order Value for Online Retail"},"content":{"rendered":"\n<!-- SEO Ultimate (http:\/\/www.seodesignsolutions.com\/wordpress-seo\/) - Code Inserter module -->\n<!-- Google Tag Manager (noscript) -->\r\n<noscript><iframe src=\"https:\/\/www.googletagmanager.com\/ns.html?id=GTM-5DTCW7B8\"\r\nheight=\"0\" width=\"0\" style=\"display:none;visibility:hidden\"><\/iframe><\/noscript>\r\n<!-- End Google Tag Manager (noscript) -->\n<!-- \/SEO Ultimate -->\n\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>The profit of any eCommerce store is the average order value (AOV) multiplied by the total amount of orders. Relying on this formula, you can boost your bottom line by attracting new consumers and <a href=\"https:\/\/rampiq.agency\/blog\/steps-to-boost-ecommerce-sales\/\" data-type=\"URL\" data-id=\"https:\/\/rampiq.agency\/blog\/steps-to-boost-ecommerce-sales\/\" target=\"_blank\" rel=\"noreferrer noopener\">increasing the number of orders<\/a>. Otherwise, you can receive more value out of existing buyers and new visitors to boost the AOV relying on them.\u00a0<br><\/p>\n\n\n\n<p>In the article, you\u2019ll find 10 top ways to increase eCommerce average order value to be inspired.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#1: Free Shipping Threshold<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/Y4llCQSsooxKzF_8LT5klzu4N2AhkxzWAEmqvWcEwsgpDw_hW23N9nvJL7GLGV6DXBd_AamzTFdp9h4zeP6BX3p9gZb91A40Mf1WZJGfj2JT1LjON08z5VuQF2YeBeFOTzhJ6Hjd\" alt=\"10 Tactics to Increase Average Order Value for Online Retail | MageWorx Shopify Blog\"\/><\/figure><\/div>\n\n\n\n<p>Apparel brand <em>iloveplum <\/em>has been lucky to increase the AOV by <a href=\"https:\/\/www.shipbob.com\/blog\/iloveplum\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">97%<\/a> by providing consumers with free two-day delivery within the US for orders above $40 (now, they should be above $100). Why was this tactic so successful?<br><\/p>\n\n\n\n<p>Consumers tend to buy goods only when they have an opportunity to qualify for free shipping. That\u2019s why in case they are obliged to pay for a delivery, <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.barilliance.com\/10-reasons-shopping-cart-abandonment\/\" target=\"_blank\">60%<\/a> of buyers will leave their carts without purchases. At the same time, <a href=\"https:\/\/www.ups.com\/media\/en\/ca\/comScore_infographic.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">69%<\/a> of shoppers are ready to buy more goods when free shipping is provided. Thus, setting this threshold is a surefire way to increase the AOV for eCommerce sites and make your consumers happy.&nbsp;<br><\/p>\n\n\n\n<p>When implementing this tactic for your online store, it\u2019s critical to estimate your free shipping threshold carefully. If it\u2019s too low, it can\u2019t be profitable for the merchant. If it\u2019s extremely high, buyers won\u2019t even intend to achieve it. It was found that the AOV of any store can be increased by <a href=\"http:\/\/aaronzakowski.com\/increase-average-order-values\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">30%<\/a> with the help of a free shipping threshold. For brands with high international shipping costs, it\u2019s crucial to offer distinct thresholds on domestic and international delivery.<br><\/p>\n\n\n\n<p>You can display <a href=\"https:\/\/mageworx.com\/blog\/free-shipping-promo-bars-app-advanced-functionality-at-no-cost\/\">motivation bars<\/a> to inform buyers on how much it\u2019s necessary to spend to get free shipping. Another way to remind your buyers is right by to use notifications at the checkout. For instance, it can be something similar to \u2018You\u2019re $X away from qualifying for free shipping\u2019.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#2: Upsell on the Checkout Page<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/DdBjkfbDhehCZEjLtK77voNTfksQZpiDbEpz_eK-VsXH80WHi6SWM4v647wlHDMPrMKGpsGZwiViCnKuZMoC5nmDjtX5qqvzA2urTRrzbnvNKqX4MgjZccy_hluOMNAijBev5Xsh\" alt=\"10 Tactics to Increase Average Order Value for Online Retail | MageWorx Shopify Blog\"\/><\/figure><\/div>\n\n\n\n<p>Another frequently recommended tactic to use is <a href=\"https:\/\/www.mageworx.com\/blog\/common-mistakes-when-upselling\">upselling<\/a>, as <a href=\"https:\/\/sumo.com\/stories\/ecommerce-upselling\" target=\"_blank\" rel=\"noreferrer noopener\">70-95%<\/a> of revenue comes from the implementation of this method.<br><\/p>\n\n\n\n<p>When customers are on your checkout page, they\u2019ve already chosen some goods. It\u2019s the right time to offer them a more expensive, upgraded version of products with distinct advantages. The main rule is not to make customers\u2019 buying process distracting, forced, and with extra steps.&nbsp;<br><\/p>\n\n\n\n<p>For instance, <em>Apple<\/em> displays two options of the 16-inch MacBook. So, having intended to buy a 6-core processor with 512 GB, customers may change their mind for an 8-core processor with 1T for $400 more.<\/p>\n\n\n\n<p>Thus, when explaining your buyers a reason for spending more, you can improve the order amount and the AOV by <a href=\"https:\/\/vwo.com\/blog\/use-upsell-cross-sell\/\" target=\"_blank\" rel=\"noreferrer noopener\">10-30%<\/a>.&nbsp;<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#3: Product Bundles<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/x7b_64_Hi3kKLcHgDaCI_tG8G7LlyMAFz6vBFgn8KC7IK_XiqalEjuCBgxhcLIE80YDzHctAQsWYPBTp5SJENHlW9Y2o1VPqhDa7bY8lSHKxx8mP9yctuskhrk9go-A9xCjtuuzt\" alt=\"10 Tactics to Increase Average Order Value for Online Retail | MageWorx Shopify Blog\"\/><\/figure><\/div>\n\n\n\n<p>Selling more than one item in an order is another way to boost the AOV. Product bundling is the right decision. You can put frequently bought items together, or allow shoppers to create bundles following their preferences and tastes by letting them select from provided add-ons. Thanks to this tactic, <em>Black n Bianco\u2019s<\/em> average order value increased by more than <a href=\"https:\/\/databox.com\/increase-average-order-value\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">25%<\/a>.<br><\/p>\n\n\n\n<p>Product bundles not only help increase the AOV but also improve customers\u2019 experience by making the decision-making process easier. They\u2019ll undoubtedly appreciate a chance to buy the whole package, a gift set, or a total look at one place.&nbsp;<br><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Advanced Bundle Products App for Shopify\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/YCAMcbnof_M?start=15&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>To apply this tactic in your Shopify store, make use of the <a href=\"https:\/\/apps.shopify.com\/grouped-products\" target=\"_blank\" rel=\"noreferrer noopener\">Advanced Bundle Products<\/a> app by MageWorx. It\u2019ll help stimulate your shoppers to buy more within one order.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#4: Gift Wrapping Option<\/h2>\n\n\n\n<p>When <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.forbes.com\/sites\/deborahweinswig\/2017\/08\/31\/how-us-consumers-plan-to-shop-for-the-holidays-and-what-prime-members-will-do-differently\/#a9313515608d\" target=\"_blank\">82%<\/a> of customers buy gifts online on holidays, they make a&nbsp; <a href=\"https:\/\/mageworx.com\/blog\/why-offer-gift-wrapping-in-ecommerce\/\">gift wrapping<\/a> option one more effective tactic to increase the AOV. As 52% of consumers hate gift wrapping for taking too much time (Statista), they\u2019d better pay more not to waste time.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#5: Minimum Order Amounts for Discounts<\/h2>\n\n\n\n<p>Thresholds for discounts, as well as a minimum order quantity for free shipping, motivate customers to spend more. For instance, encourage them to make purchases for&nbsp; $85 and get a $10 discount in return.&nbsp;<br><\/p>\n\n\n\n<p>Otherwise, you can suggest volume discounts: more expenditures mean higher discounts. Even though buyers have to purchase more goods they haven\u2019t intended to, shoppers still think they\u2019ve got a deal. To emphasize this tactic, it\u2019s a good idea to create urgency by offering time-sensitive deals, or fear of missing out by such appealing phrases as \u2018last 5 in stock\u2019, or \u2018285 customers have already got it\u2019, etc.&nbsp;<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#6: Product Recommendations<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/kinKDc8NBbro3ba0IqNOI-Ho0J8vMzVIsqf4sqjrE9IOKpnAvsk8ZLL0JeM0R1_Ut1TIv2B5fj_yNVjG0jEloT7ccNv4Rbqc_wd9ceB9ZRVd1_qh3MvKHof375Pi14bBmgRlO6tJ\" alt=\"10 Tactics to Increase Average Order Value for Online Retail | MageWorx Shopify Blog\"\/><\/figure><\/div>\n\n\n\n<p>More sales mean increased average order value. Thus, product recommendations are one more way to do it because customers <a href=\"https:\/\/www.business2community.com\/infographics\/the-importance-of-cross-selling-and-product-recommendations-for-e-commerce-website-02181883\" target=\"_blank\" rel=\"noreferrer noopener\">4.5<\/a> times more likely to add recommended products to their shopping carts. According to estimates of Forrester Research, 30% of eCommerce sales have been contributed by recommendations. Moreover, 58% of buyers tend to buy from vendors who make product recommendations following customers\u2019 purchasing history (Accenture).<br><\/p>\n\n\n\n<p>Product recommendations will assist you in increasing the AOV only when they are carefully set up, relevant to buyers\u2019 interests and previous searches, add value to their shopping experience and give them certain advice.&nbsp;<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#7: Loyalty Programs<\/h2>\n\n\n\n<p>Repeat customers spend <a href=\"https:\/\/www.business.com\/articles\/returning-customers-spend-67-more-than-new-customers-keep-your-customers-coming-back-with-a-recurring-revenue-sales-model\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">67%<\/a> more money than new buyers. That\u2019s why loyalty programs are one of the best tactics to increase the AOV for eCommerce sites. By offering such programs, you create strong relationships with buyers and increase conversions as well.&nbsp;<br><\/p>\n\n\n\n<p>There are enormous loyalty programs that encourage members to make more purchases and reward customers for participation. The most widespread one is the tiered reward program, where participants entice to reach the highest tier to get a more significant discount. Loyalty programs are popular as they offer tempting rebates exclusive offers for returning buyers.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#8: Cashback<\/h2>\n\n\n\n<p>How else is it possible to increase eCommerce average order value? It\u2019s necessary to create a cashback system giving customers an incentive to buy more. For 83% of shoppers, it\u2019s critical to receive cashback after a purchase to feel rewarded. Moreover, unnecessarily, buyers will spend all the rewards in the future, especially if you set deadlines for the cashback rewards. It\u2019s a winning tactic for all the participants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#9: Gamification<\/h2>\n\n\n\n<p>The AOV of your store can be increased with the help of games and contests. Use this tactic to get your subscribers spending more. Provide them with an opportunity to win prizes and get benefits for frequent purchases, user activity, shares on social media, etc. Gamification helps make customers\u2019 shopping experience more entertaining by adding a competitive sense to it. Buyers become more engaged and loyal to the brand. As a result, it will have a positive effect on the AOV of your store.&nbsp;&nbsp;<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">#10: Donations<\/h2>\n\n\n\n<p>One more tactic, which value can\u2019t be diminished, is to let your buyers donate with every order. Thus, if consumers have a strong desire to give more, they have to make more orders. So, you boost the AOV and do good at the same time.<br><\/p>\n\n\n\n<p>According to the research conducted by Cone Cause Evolution Study, 85% of shoppers are more commonly to purchase from the company supporting a charity. Moreover, 53% of buyers are ready to recommend the brand\u2019s goods or services to others (Echo Research).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final Thoughts<\/h2>\n\n\n\n<p>Average order value is extremely meaningful for any store. The profitability of any brand directly depends on it. Thus, implementing effective tactics to boost the AOV for your eCommerce site offered in the article, you\u2019ll be able to achieve the increased bottom line and conversions of your subscribers.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The profit of any eCommerce store is the average order value (AOV) multiplied by the total amount of orders. Relying on this formula, you can boost your bottom line by attracting new consumers&#8230;<\/p>\n","protected":false},"author":44,"featured_media":15019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[481],"tags":[467],"class_list":{"0":"post-14386","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-shopify","8":"tag-aov"},"_links":{"self":[{"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/posts\/14386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/comments?post=14386"}],"version-history":[{"count":8,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/posts\/14386\/revisions"}],"predecessor-version":[{"id":16519,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/posts\/14386\/revisions\/16519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/media\/15019"}],"wp:attachment":[{"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/media?parent=14386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/categories?post=14386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mageworx.com\/blog\/wp-json\/wp\/v2\/tags?post=14386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}