7 Ways to increase your stores average order value
Learn how to increase the average order value of your Shopify store, by focusing on the traffic you already have. Let's increase your profits!
The obvious goal of many eCommerce stores is to make money. If that’s your goal, and you’ve established your store and marketing strategy, then this is the post for you!
When looking at your data, you may notice a large majority of purchases fall in the same price range. This could be due to the popularity of a product or similar pricing across a number of products. But, if your sales are looking the same month after month, you should be looking for ways to boost them!
You already know that increasing traffic to your site will increase the number of orders you receive, but getting this traffic can be costly and time consuming.
To increase your store’s average order value, let’s focus on the store itself. By utilizing the traffic you already have, your revenues and order values can increase exponentially!
So, how do you do it?
1. Offer Free Shipping
A great way to encourage people to buy more, is to offer them something for doing so. They could come to your store for a $40 item, but if you offer them free shipping over $50, they’ll probably spend just a little bit more to get the free shipping.
Shipping fees are one of the highest reported reasons for abandoned carts, so when you “save” buyers that money, they’ll probably put those savings back into your store!
To make free shipping thresholds work, you have to set the right price. If it’s too high, buyers won’t see the value. If it’s too low, it can destroy your margins. You need something right in the middle.
One way to calculate this sweet spot is to find your average purchase amount and then add 30%.
Encourage shoppers to reach this threshold by providing a notification at checkout when their orders don’t meet the minimum. This message will direct people back to your store instead of just checking out.
2. Offer Product Bundles
If you have products you want customers to buy together, offer them as a bundle. When these bundles work out to be cheaper than buying the items individually, it increases the perceived value.
Shoppers love a deal, and if they feel like they’re taking advantage of a special offer, they’re more likely to purchase.
Plus, a bundle is convenient! If customers know they’re going to eventually need, or want to own, the majority of the items in the bundle it makes sense to get them all at the same time, for a discounted price.
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If your product offers are consumable, and need to be replaced often, a rewards program will encourage customers to return to your store and buy from you when they’re stocking up again.
Earning points, or future discounts on purchases encourages your customers to buy more, to get more.
But, increased revenue isn’t the only perk here. Establishing a loyalty program creates customer accounts which means you’ll not only secure those all important email addresses, but you’ll gain demographic information on your customers. This information will allow you to better target your ads and improve the effectiveness of your email campaigns.
4. Offer Discounts for First Time Purchases
Offering a new visitor a 10% or 15% discount on their first purchase increases the likelihood that they’ll not only buy something, but buy more than they’d originally intended.
New customers have yet to establish a relationship with you. They’ve found the item they want and added it to their cart but that’s it. They may spend some time checking out your other offerings but hesitate because they’re unfamiliar with your store.
By offering them a first purchase discount, you alleviate some of that anxiety.
You’ve given them permission to keep shopping. Any items they add to their cart will likely increase their purchase amount well beyond what they were going to save with the discount.
5. Offer Time Sensitive Deals
No one likes to miss out on a good offer! When you offer time sensitive sales, buyers don’t know when, or if, there’s another sale coming and are driven to buy now out of a sense of urgency.
You can offer a discount on purchases beyond a certain threshold or offer a site-wide sale for a few hours. When people think they’re getting a deal, they’ll spend more. Simple as that. And when they think they’re getting a deal that expires soon, they’ll jump at it.
6. Product Recommendations
When customers are browsing a particular item, or are checking out, it’s smart to recommend a complimentary item. If customers come to your site looking for a certain product, they may checkout before looking around at others.
By offering product recommendations, you increase the chances the customer will spend more time on your page, add one of those extra items to their cart, and spend more money. Using language like “customers who bought x, also bought y,” is definitely effective.
When customers are looking at one item, it’s reasonable to assume they might be interested in similar items. Do them, and yourself, a favor by showing them what else is available in your store.
Product recommendations work particularly well if you have a line of products based on a similar theme. For example, if you sell scented candles, recommend a diffuser in the same scent.
This also works well if you sell clothing. You can recommend accent pieces or suggest items that would help the customer “complete the look.”
7. Upsell or Cross-sell
Upselling encourages your customer to increase the value of what’s already in their cart, while cross-selling allows your customers to add more products to your cart by suggesting similar items.
As mentioned previously, product recommendations is one way to do this. If someone is buying a shower curtain, offer them a deluxe premium shower curtain, or the matching bath mat and towels.
Depending on what you’re selling, an eBook can also make a great upsell option. They’re relatively inexpensive to produce, cost you nothing to distribute and/or reproduce, and provide your customer with incredible value for a reasonable price.
Any one of these options can increase your average order value and the best part is, they don’t need to be offered in isolation! Implementing one or two at a time could see your revenues increase significantly without having to also increase your store’s traffic.
Next up, check out these Shopify store examples to inspire your website design!