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11 Proven Strategies to Increase AOV for an E-commerce Business

April 3, 2023

Businesses in the e-commerce industry are continuously looking for methods of boosting their revenue. The Average Order Value (AOV), the average amount a customer spends on a single purchase from an online store, is one crucial metric that can assist in achieving this.

Each e-commerce company strives for a high AOV since it shows that customers spend more on each purchase, boosting revenue and profitability. This post will examine a few tried-and-true tactics that e-commerce companies may employ to increase AOV and, as a result, reduce cart abandonment, improve customer experience, and accelerate bottom-line growth.

How to Calculate Average Order Value

We've already mentioned the formula for Average Order Value: AOV = Revenue / Number of orders. However, to get more precise data, you can also calculate the AOV for each traffic channel, including organic traffic, referrals, ads, etc.

Installing accurate reporting web analytics software is crucial. Use Google Analytics to determine the typical order value for each traffic channel. Visit your Google Analytics profile. You'll need the figures from the Transactions and Revenue tabs and look at the low and high values to determine the causes of these changes.

Best Practices for AOV Improvement

If you strive to raise the average order value for the company, the most important thing is to earn trust. You can do this in different ways, some of them are:

  • Offer a personalized approach where each consumer can discover the ideal product.
  • Provide consumers the flexibility to modify their orders to fit their unique schedules or lifestyles.
  • Ensure your organization has a fair pricing policy.

Let's look closely at some particular activities that can be done to improve the average order value.

Optimize Product Bundles

One of the tips for raising the AOV is putting up packages and bundles that drive customers to spend more. In this situation, the right thing to do is group related things that make sense to buy together. For example, if the person purchases contact lenses, they will likely need a solution for them as well.

Evaluate your product sales data to determine which goods are frequently bought in pairs. Make these goods available in product bundles that come with a discount. Use your website and other platforms to promote the bundles extensively.

Upsell and Cross-Sell

AOV may be improved by using cross-selling and upselling tactics. Upselling is the practice of persuading consumers to upgrade or purchase more expensive versions of the product they're interested in.

With product bundles, cross-selling entails making product recommendations that complement the items a consumer is already purchasing. A pair of shoes or a scarf, for instance, may be suggested items while someone is shopping for a coat.

Examine your product catalog to find items that may be cross- or up-sold. Add checkout notifications for upselling and cross-selling. Analyze the data to find the best recommendations for increasing AOV.

Screenshot taken on the official Asos website

Optimize the Pricing

Be very careful with the products' pricing. It might be hard to boost AOV if they are too low, and if prices are too high, consumers can be discouraged from purchasing. The price must be competitive within the market sector and allow the company to profit. Do a competitive study of pricing in the industry. Maintain profit margins while adjusting product prices to comply with industry norms. To raise AOV, consider providing superior items at a higher price range.

Offer Discounts and Special Offers

Product discounts can generate more purchases and raise the average order value on your e-commerce store. Deals can be presented as a gift card, or you may provide first-time buyer discounts. This is one of the most straightforward techniques to raise the average order value and help enhance conversion rates across the site. Since customers will get a better deal, they are more likely to add other products to their shopping cart.

Screenshot taken on the official Bodum website

Provide Free Shipping

The free delivery option makes customers willing to purchase more items. You may provide a shipping option once an order reaches a specific value. If you're shipping small things, this tactic could reduce shipping costs and encourage users to make larger purchases from the website.

Free delivery is one of many options available. You may ensure the customers that the deliveries will be made safely. Another option is to offer free returns or allow clients to select from various delivery variants.

Create a Customer Loyalty Program

To thank your loyal consumers, implement customer loyalty programs. Design a program that offers the clients value-adding incentives like gifts for spending a specific amount or discounts for making a particular number of purchases or returning customers. 

These initiatives boost not only sales but also brand engagement, resulting in increased levels of customer satisfaction and steadfast brand loyalty. Due to reduced related marketing and advertising expenditures, loyal clients are more likely to leave more money at your store, which is excellent for AOV.


Screenshot taken on the official The Webster website

Create the Feeling of Urgency

Use time-limited deals to raise the average order value for your online store. Many shoppers simply can't resist a bargain, especially if it has a feeling of urgency. In this regard, you may create a limited edition of some products or launch a countdown with a discount.

Demonstrate Social Proof

If consumers see that others have bought similar goods from your store and stayed satisfied with the purchase, they are more inclined to do the same. So it makes sense that social proof is a valuable strategy for boosting your AOV and encouraging greater buy orders.

As a result, showing social proof from the customers may help build trust with potential consumers. Also, if potential and present consumers realize that you are a reputable company many people adore, they are more inclined to make larger purchases.

User-generated content is one of the finest methods to demonstrate social proof. You might also post reviews on the homepage and social media accounts to let people see what your clients think about the store.

Screenshot taken on the official True Botanicals website

Provide Free Trials for Premium Products

Customers prefer to try products out before purchasing them, especially if the product is expensive. Knowing that a product works well and corresponds to your expectations is comforting. Giving out free samples of more expensive or premium items is a highly efficient way to increase AOV and conversions for such products. 

If you sell a digital product, promoting a trial period is also a working strategy for entry-level products. As a product's advantages are demonstrated, any remaining doubts are eliminated, which motivates clients to spend more money.

Ensure Live Chat Support System

A company has a better chance of decreasing the abandoned carts rate and converting customers if representatives are constantly available to answer customer questions. Clients are less likely to abandon shopping carts full of items when the company can answer their questions promptly.

For instance, a consumer who wants additional details about the shipping prices would demand a prompt response before purchasing. You have a greater chance of converting such consumers if you answer immediately, raising the company's sales and, thus, AOV.

Screenshots were taken on the official Farfetch website

Perform A/B Testing

You should test each AOV-boosting strategy to ensure it works as effectively as possible. This may be accomplished through A/B testing. Split testing is a reliable technique for comparing several website components to get the best variables combined for positive outcomes. Making the wrong decision might result in your online store losing conversions at a staggering pace. With that in mind, make it a practice to test key components to make sure you're putting your attention where it belongs.

Image credit: Freepik

Final Word

To increase sales and profitability, an e-commerce company should raise its average order value (AOV). Businesses may successfully enhance AOV and boost sales by putting the tactics outlined above into practice, including upselling and cross-selling, offering free delivery, making individualized product suggestions, and others. Turning to analytics to customize these techniques to each customer's buying habits and interests is crucial.

Establish a baseline for the company before implementing any sales strategies, and then monitor changes in client behavior. By doing so, you may drive the success of your marketing initiatives, keep an eye out for any patterns or abnormalities, and adjust the tactics to better serve your target audience. In a similar vein, make sure to keep an eye on client feedback. You may keep improving customer experience by paying attention to what consumers say and how their comments change over time.

Kate Parish is a guest contributor to Marin Software.

Kate Parish

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