10 Ways to Improve Your Shopify Site’s Average Order Value (with Examples) 

Introduction

As an e-commerce store owner, your ultimate goal is to increase your revenue and maximize profits. That's where AOV comes into play. If you want to increase the profitability of your store, improving your AOV should be one of your top priorities. 

Luckily, there are many practical approaches you can take to boost your Shopify site's AOV, and we've rounded up 10 of the best. From upselling and cross-selling to using shipping protection apps, these strategies are proven to increase your AOV and help you take your Shopify store to the next level. 

So let's dive in and explore how you can optimize your store for higher AOV and increased profitability!

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What Does AOV Stand for?

Average Order Value (AOV) measures the average amount of money that customers spend when making a purchase on your site.

In simpler terms, if you have ten customers who purchase items from your store, and they each spend $50, your AOV would be $50. AOV is an incredibly important metric for your ecommerce business as it directly affects your revenue and profits.

So why is it crucial to increase your AOV? There are several benefits to doing so. Firstly, it increases revenue as customers spend more money with each purchase. Secondly, it improves profitability as fixed costs can be spread over larger orders, resulting in a larger profit margin.

Thirdly, it helps you keep up with your competitors. If a customer knows that by spending a little more with you, they can get free shipping or a discount, they are more likely to do so. This helps you stay competitive in the market and retain existing customers.

Lastly, increasing AOV means increasing customer lifetime value. When customers spend more with you, they are more likely to return to your store in the future and continue to make purchases. This directly impacts customer retention and contributes to building a loyal customer base.

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#1: Use a Shipping Protection App like Onward for an Instant AOV bump 

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Using a shipping protection app like Onward can be a game-changer for your Shopify store. Shipping protection apps allow Shopify stores to not only offer their customers peace of mind when it comes to package delivery, but they can also boost their own AOV. With Onward's VIP perks, cash-back loyalty rewards, and 90-day happiness guarantee, customers are more likely to make repeat purchases and spend more with a store that offers such exceptional service. Additionally, with Onward's free returns subsidy, customers are more likely to make a purchase knowing that they have the option to easily and cost-effectively return an item if it doesn't meet their expectations. Overall, using a shipping protection app like Onward can lead to increased customer loyalty and a higher AOV for Shopify stores.

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Related: What is Shipping Protection and Do You Need it?

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#2: Add products from complementary brands to round out your assortment and increase cross-sell opportunities

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Selling products from complementary brands can also increase your Shopify site’s AOV. This strategy involves partnering up with other brands that offer products that complement yours, such as selling headphones to complement a music player or offering a variety of teas to complement a teapot. By doing so, you expand the range of products you offer and increase the likelihood of customers adding more items to their shopping carts.

With Honeycomb Commerce, you can easily connect with complementary brands to offer their products on your store. You can also create curated collections that offer multiple brands' products. This is also an easy way to attract new customers and expand your audience. 

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#3: Cross-sell accessories using product recommendations in the side cart and on product pages

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One effective way for Shopify stores to increase their AOV is through cross-selling complementary products. By offering relevant products that pair well with the main item being purchased, stores can encourage customers to add additional items to their cart. This not only increases revenue per customer, but it also enhances the overall shopping experience.

A great example of cross-selling in action is on the Casper mattress website. When customers add a mattress to their cart, they are presented with easy-to-view suggestions for pillows, sheets, and other sleep accessories that complement their purchase. This strategic approach has helped Casper increase their AOV and build a loyal customer base.

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#4: Offer product upsells on product pages to move customers to more expensive products

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Upselling to a more premium option is a strategy that can notably increase AOV for your Shopify store. By suggesting an alternative product with higher value, you give customers the opportunity to purchase premium products that they may not have considered otherwise.

For example,  Nectar offers its customers an upgrade to their “Premier” mattress when buying their standard option. This upselling strategy has proven to be successful for Nectar, as it undoubtedly increased their AOV. Additionally, offering a premium option shows customers that your brand is committed to quality and providing them with the best possible products. By implementing upselling techniques into your Shopify store, you can increase your AOV while giving customers more options to enhance their purchase.

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#5: Offer build-your-own bundles to give customers bulk savings and drive larger basket sizes

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By bundling complementary products together, you're encouraging your customers to purchase more items in one go. The idea is that by offering a discount or some other incentive for purchasing a bundle, your customers will be more likely to buy more products from your store. 

One great example of this in action is the Huron website. They allow customers to build their own product bundle, and the more they add to their bundle, the more free shipping or free products they can earn. This incentivizes customers to purchase more products in one go, ultimately increasing the AOV for the store. 

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#6: Use gifts with purchase at thresholds slightly above your AOV that encourage customers to add more items to cart

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One effective strategy for boosting the AOV of a Shopify store is through offering a gift with purchase. A free or discounted item can incentivize customers to spend more in order to reach the threshold for the gift, ultimately increasing the overall value of their purchase. In fact, studies show that customers are willing to spend up to 50% more to receive a free gift.

For example, the popular cereal brand, Magic Spoon, offers a free box of cereal when customers buy a case of their product. This simple promotion not only increases AOV, but also encourages customers to try different flavors and potentially become long-term customers. By incorporating a gift with purchase program into your Shopify store, you can provide added value to your customers and potentially increase your revenue at the same time.

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#7: Capture more value at customers’ most high-intent moment – just after they’ve made a purchase on your website 

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One of the most effective ways to increase the AOV for your Shopify store is by incorporating post-purchase upselling or offering limited-time offers after a customer checks out. By doing so, you can motivate your customers to purchase more products or buy higher-priced items, leading to a higher AOV.

Limited-time offers or flash sales can create a sense of urgency and scarcity, which can prompt customers to buy more or buy at a higher price point even after customers have checked out. For instance, you can offer discounts for a limited time, or create exclusive bundles or sets that are only available for a short period.

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#8: Offer monthly installments through Affirm or Shop Pay to drive higher ticket purchase with customer peace of mind

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Incorporating buy now pay later apps like Shop Pay and Affirm can be a powerful way to drive up your Shopify store's Average Order Value . These apps allow shoppers to break down their purchase into smaller payments over time, making larger ticket items more affordable to a wider range of customers. This allows you to increase the chances of larger sales

Take, for example, Noble, a Shopify store that specializes in eco-friendly children's clothing. With the implementation of Affirm as a payment option, the store saw its AOV increase by a whopping 79%. The accessibility and flexibility of financing options like Affirm allows customers to purchase more items from your store with ease and encourages them to shop with you over your competitors. 

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#9: Strategically leverage Free Shipping progress bars to get customers above your desired AOV threshold

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One of the best ways to improve the AOV of your Shopify store is to offer free shipping. But how can you encourage your customers to spend a little more to reach that free shipping threshold? The answer lies in a free shipping progress bar tool. By using this tool, customers can easily keep track of how much more money they need to spend in order to earn free shipping. This not only motivates them to add more items to their cart, but also helps them feel more informed and in control of their purchasing decisions.

#10: Offer 'buy in bulk' volume discounts to encourage savings on multiple items

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One surefire way to increase the AOV for your ecommerce brand is by offering volume discounts. This strategy encourages customers to buy more products or items in larger quantities, which ultimately leads to higher sales for your store. 

For example, the Long Wknd online store offers a discount for customers who purchase larger quantities of a product. When you buy three or more items, the price of the item will be discounted by 10% - 15%. Volume discounts are a win-win for both the customer and the store owner. Customers get a good deal for buying in bulk, and the store owner benefits from increased sales and a higher AOV.

In summary

Improving your site's AOV should be a top priority for any ecommerce business owner. Some ways to increase it include offering free shipping on orders over a certain amount, creating product bundles or discounts for multiple items, and offering upsells and cross-sells at checkout. With a little work, you can boost your AOV and watch your profits soar!

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One of the best ways to improve AOV for your Shopify site is offering shipping protection with Onward. Setup a call here to get started.

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FAQs on Increasing Average Order Value

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How do you calculate Average Order Value?

Average order value is calculated by dividing your total sales by your total orders: Total Sales / Total Orders. This can be done using Gross Sales, meaning your Gross AOV, or Net Sales, after deducting the total cost of customer discounts and refunds.

Example: Acme Toys sold $45,552 worth of toys in the month of September and generated 587 orders. Therefore, Acme Toys AOV is $45,552 / 587 or $77.60.

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What causes low AOV?

Low AOV can be caused by a number of factors, including discounting of products, seasonality, time of month, and the customer mix coming to your store. Moreover, if you are spending more money on paid advertising, you are likely bringing in less and less qualified customers to your site, which can also negatively impact AOV.

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What's the best way to increase AOV?

Leveraging several of the tactics outlined above will get you a long ways to increasing the AOV of your Shopify or ecommerce store. You should also aim to build a frictionless and trusted digital experience that gives customers peace of mind. This will naturally provide better conversion rates on the higher-priced items in your store.

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Related: eCommerce Operators: Do these 12 Things to Create a World-Class Post-Purchase Experience

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