13 Proven Ways To Increase Average Order Value On e-Commerce Website.

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To increase the average order value on an e-commerce website, there are a few basic things that can be done.

In this blog post, we will outline some of the methods that can be employed to achieve this goal.

Increasing the average order value is important because it can result in more sales and higher profits for businesses.

By following the tips in this article, you can learn how to boost your e-commerce business’ bottom line.

What Is Average Order Value?

Average Order Value (AOV) is a metric that measures the average amount of money spent per order on a site or app.

To calculate AOV, simply divide total revenue by the number of orders placed.

For example, if a store generates $100,000 in sales from 1,000 orders, its AOV would be $100.

While AOV is a useful metric for assessing business performance, it’s important to keep in mind that it can be affected by a variety of factors such as product mix, discounts, and shipping costs.

As such, it should be used in conjunction with other metrics such as conversion rate and customer lifetime value to get a complete picture of business health.

Why Does Average Order Value Matter For an e-Commerce website?

If you own or operate an e-commerce website, then you know that generating sales is essential to your success.

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But did you know that the average order value (AOV) is also an important metric? Here’s why:

The AOV is a measure of the average dollar amount that each customer spends per order.

Obviously, the higher the AOV, the more revenue you’ll generate per sale.

But the AOV can also be a useful tool for evaluating your marketing and pricing strategies. For example, if you see that your AOV is declining, it could be a sign that your prices are too high or that your product offering is not appealing to customers.

On the other hand, if your AOV is increasing, it could mean that your marketing efforts are successful in driving up demand for your products.

In short, the AOV is a key metric to watch for e-commerce businesses. By tracking and analyzing your AOV, you can gain valuable insights into your sales performance and make necessary adjustments to ensure continued success.

How Do You Effectively Calculate Average Order Value For e-Commerce Website?

To calculate the average order value for an e-commerce website, businesses need to track the total revenue generated from each online sale and then divide that number by the total number of orders placed.

This will give them their average order value. To get a more accurate number, businesses should calculate their average order value over some time (e.g., monthly or yearly) and then take the average of those values.

Businesses can use this metric to track their progress over time and identify any trends or changes in customer spending.

Additionally, businesses can use this metric to benchmark their performance against other e-commerce websites.

By tracking and understanding their average order value, businesses can make decisions about pricing, product mix, and marketing strategies that will help them increase sales and improve their bottom line.

How To Increase Average Order Value On e-Commerce Website?

1. Use urgency and scarcity tactics on product pages to create a sense of urgency and encourage buyers to take action.

Using urgency and scarcity tactics on product pages to create a sense of urgency and encourage buyers to take action is a good way of increasing Average order value on e-commerce websites.

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By encouraging buyers to purchase items that are in limited stock or that are only available for a limited time, you can increase the average order value on your site.

Customers will be more likely to add additional items to their cart if they feel like they need to act quickly.

You can also use scarcity tactics to upsell customers on higher-priced items.

For example, if you only have a few of a particular item in stock, you can highlight that fact on the product page and encourage customers to purchase the higher-priced item instead.

By using these tactics, you can encourage customers to spend more money on each order, which will ultimately increase your average order value.

2. Offer free shipping on orders over a certain amount.

By offering free shipping on orders over a certain amount, e-commerce websites can increase their Average order value.

By increasing the Average order value, e-commerce websites’ can make more money per customer.

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This is because the customer is more likely to spend more money on the website if they know they will not have to pay for shipping.

Shipping costs are often a deterrent for customers when they are shopping online, so offering free shipping to e-commerce websites’ can increase their sales.

What are upsells?

Upsells are additional products or services that a company offers to their customers. For example, a customer might be offered an upgraded product for an additional fee, or they might be encouraged to purchase a related product.

Upsells can be an effective way for businesses to increase revenue, but they must be carefully executed so as not to alienate or frustrate customers.

When done correctly, upsells can provide customers with added value and convenience, and they can also help businesses to achieve their growth goals.

What are cross sells?

Cross sell is a marketing technique employed to encourage customers who are already buying a product to buy related products.

The main objective of cross selling is to maximize the revenue generated per customer by increasing the number and/or value of products sold.

Cross selling typically occurs at the point of sale, when customers are most engaged with the product they are buying and most likely to be receptive to upselling.

Cross selling can also be done through other channels such as customer service, after-sales support, and marketing communications.

When done effectively, cross selling can help businesses to boost sales and build customer loyalty.

Cross-sells and upsells are effective ways to increase the average order value on an e-commerce website.

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Cross Sells (Source: Amazon)

By suggesting related or more expensive products to buyers, you can encourage them to spend more money per transaction.

This can be done by displaying related products on product pages, or by providing special offers for customers who purchase multiple items.

Cross-sells and upsells can also be used to encourage customers to buy higher-priced items, or to upgrade their current purchases.

By carefully selecting which products to cross-sell and upsell, you can significantly increase your average order value and improve your bottom line.

4. Display customer reviews and ratings prominently on product pages to boost trust and confidence among buyers.

There are a few key reasons why displaying customer reviews and ratings prominently on product pages can help increase average order value on e-commerce websites.

First, it helps create trust and confidence among buyers by giving them access to honest feedback about the products they’re interested in.

Second, it allows buyers to see what others think about a product before they make a purchase, which can help them make better-informed decisions.

Finally, it provides social proof that others have purchased the product and been happy with it, which can encourage more people to do the same.

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Overall, displaying customer reviews and ratings prominently is a great way to boost trust and confidence among buyers, which can ultimately lead to higher average order values.

5. Use targeted ads and email campaigns to promote specific products that are likely to result in a higher average order value.

By using targeted ads and email campaigns to promote specific products that are likely to result in a higher average order value, e-commerce website owners can increase their Average order value.

Promoting products that have a high margin or are frequently purchased together can encourage customers to spend more per order, resulting in a higher Average order value.

In addition, running targeted promotions and offering discounts on specific products can also entice customers to purchase more items at once, further increasing the Average order value.

By utilizing these strategies, e-commerce website owners can effectively boost their Average order value and generate more revenue.

Read my email marketing tips for beginners here.

6. Improve your e-commerce website design and user experience.

By investing in improving your e-commerce website design and user experience, you can increase the average order value on your site.

Good design makes it easy for users to find what they’re looking for, and a positive user experience encourages them to stay on your site and browse through your products.

If you can increase the amount of time that users spend on your site and make it easy for them to find and purchase your products, you’ll see a corresponding increase in your average order value.

By making these improvements, you’ll be able to increase your sales and grow your business.

Read my e-commerce website design trends here.

7. Provide more product information and images.

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Providing more product information and images is one way to help increase the Average order value on the e-commerce website.

The more information potential customers have, the more likely they are to purchase a product.

Images are also important as they provide an opportunity for customers to visualize the product and see how it might fit into their own lives.

Indeed, studies have shown that products with multiple images have a higher conversion rate than those with just one image.

By offering more information and images, ecommerce businesses can help increase Average order value and boost their bottom line.

8. Increase the number of purchase options.

When customers feel like they have more purchase options, they are more likely to buy something from the site.

This is because they feel like they have more control over what they are buying, and they are more likely to find something that meets their needs.

By increasing the number of purchase options, businesses can increase the average order value on their e-commerce website.

This, in turn, can lead to increased profits and a higher level of customer satisfaction.

9. Offer discounts and promotions.

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By offering discounts and promotions, businesses can increase the average order value on their e-commerce website.

This encourages customers to purchase more items, which can lead to increased sales and profits.

Discounts and promotions can also create a sense of urgency and encourage customers to purchase items that they might not otherwise consider.

By carefully planning and executing discounts and promotions, businesses can boost their bottom line while also creating loyal customers.

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10. Use exit intent popups to offer discounts or coupon codes.

What is an exit intent pop up?

An exit intent pop up is a form of pop up that appears when a user goes to leave a website. The purpose of an exit intent pop up is to try and get the user to stay on the site by offering them something, such as a discount or incentive.

Usually, exit intent pop ups are used by ecommerce sites in an attempt to increase conversions. Exit intent pop ups can be effective, but they can also be annoying to users.

As such, it is important to use them sparingly and only show them to users who are likely to be interested in what is being offered.

By offering a discount or coupon code, you can encourage customers to stay on your site and make a purchase.

This can be especially effective if you offer a time-sensitive discount, such as 10% off the customer’s next purchase if they stay on your site for another minute.

Exit intent pop-ups can also be used to upsell customers by offering discounts on higher-priced items.

For example, you could offer a 10% discount on an item that is normally $100 if the customer spends $200 or more on your site.

By using exit intent pop-ups, you can increase your average order value and encourage customers to make more purchases on your site.

11. Optimize the checkout process for speed and ease of use.

Optimizing the checkout process for speed and ease of use is a key way to increase the Average Order Value (AOV) on an e-commerce website.

A fast and user-friendly checkout process encourages customers to complete their purchases and provides a positive user experience that can lead to repeat business.

By streamlining the checkout process and reducing friction points, businesses can increase AOV and drive sales.

Additionally, businesses should offer multiple payment options to further optimize the checkout experience and encourage customers to complete their purchases.

12. Display product prices in multiple currencies for international shoppers.

One way of increasing average order value on an e-commerce website is by displaying prices in multiple currencies for international shoppers.

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This allows shoppers to see the cost of the product in their currency, making it more likely that they will purchase the item.

Additionally, it can help to build trust with international customers by showing them that the website is willing to accommodate their needs.

Ultimately, this can lead to more sales and a higher average order value.

13. Allow customers to use coupons or promo codes at checkout.

Accepting coupons and promo codes at checkout is a way of increasing Average order value because it encourages customers to spend more money on your website.

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By offering a discount, you are enticing customers to add more items to their cart and increase their overall purchases.

Additionally, coupons and promo codes can also help to build brand loyalty as customers are more likely to return to your website if they know they can save money.

Therefore, accepting coupons and promo codes at checkout is an effective way to boost Average order value.

Conclusion:

So there you have it, thirteen tried and tested methods for increasing your average order value.

Some of these may be more applicable to your business than others, but give them all a try and see which works best for you.

And don’t forget, if you need help putting any of these into practice or want advice on how to increase average order value in other ways, we’re here to help.

Thanks for reading!

Also read: 16 Top E-Commerce Website Design Trends In 2022.

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