If you’re an ecommerce store owner then you’re looking for ways to increase your revenue. One common way to achieve this that is often overlooked is to increase your average order value (AOV).

What is Average Order Value? AOV is the average dollar amount your customers spend per transaction. It can be calculated with the following equation:

Total revenue / number of orders = average order value

So for example, if your store has a total monthly revenue of $20,000 and during that time there were 200 orders your average order value would be $100.

Now that you fully understand AOV how do you increase it? Well, there is no one size fits all solution to this. It takes some well thought out strategy that is specific to your store. There are, however, some fairly simple and highly effective optimization tactics you can implement to help boost your AOV.


  1. Cross Selling

Cross selling starts with a drive product. This is your popular or trending products that drive traffic to your site and have the most sales. Once they add the drive product to their cart you start recommending secondary products to purchase.

The secondary product should be something that complements and enhances the experience of the drive product. You then position the secondary product in a way that the customer feels obligated to purchase it in order to get the best out of the drive product. Now, the customer has added another product to checkout increasing the order value.

A good example of this would be a laptop. When customers are checking out you can offer secondary products like a monitor or software as your secondary product.


  1. Upsell

Another way increase AOV is by upselling to your customer. Don’t get this confused with cross selling. Upselling is a tactic that presents the customer a better version of the same product.

Let’s stick with our laptop example. After a customer adds the laptop to their cart and proceeds to checkout you present them with additional options they can add to the laptop. A faster processor, larger screen size, more memory, are all way to upsell in this case.

Be sure to price your upsell items reasonably. This will help soften resistance for the customer to pull the trigger on that decision. If executed effectivly this can be a very effective method to increase AOV. On average upsells are responsible for 10-30% of ecommerce revenues.


  1. Incentives

I’m sure you have experienced this before…You are checking out your order on a website when they hit you with a notification that reads along the lines of “Spend $100 and receive free shipping!”. That right there is a classic incentive based tactic.

You can also get very creative here. One way of doing so would be to gamify the incentive approach. For example, you can say “If you add $10 to your cart you get 10% off your total order”. It’s almost like a challenge to the customer to go find another project that will push them over that limit.


  1. Collections/Bundling

Getting a customer to add more items to the cart is the most common way to increase order value. One of the best ways to accomplish this is by using collections or bundling.

This method packages related items together for one price. For this to be effective make sure the bundled price is less than if the customer were to purchase the multiple items individually.

Not only are you providing convenience through this method but you are also building a personalized shopping experience for your customers.

Physical products seem to have great success with this method. However, this can be done with digital products as well. Although the digital product bundling doesn’t work across all industries if you can get it to work it could potentially be a home run. This is because your digital products tend to have high profit margins.


  1. Social Proof

Social proof is a method that encourages customers to purchase based on the buying decisions of others. There are a few different ways you can approach this: product reviews, influencer or celebrity endorsements, or recommendations by friends. With 70% of people said to trust consumer opinions posted online, it’s no wonder a lot of ecommerce businesses are starting to use this tactic to help boost revenue and AOV.

On creative approach to this tactic is by building out a landing page for your product. Instead of sending traffic to your product page you direct them to that landing page. This landing page showcases all the great things people are saying about the product. Have a call to action (CTA) that then takes you to the product page. This landing page buffer provides the social proof immediately before the customer has to make a buying decision.

Alternatively, you provide social proof by highlighting purchases made by other customers. Plugins like Proof are a great example of this. Once installed it will activate a subtle pop-up notification in the lower corner of your website. It displays messages like “So and So just purchase this product 2 min ago”. If they see others have purchased the product they are interested in it reassures the buying decision. That could be just the push the customer needed to go from add-to-cart (ATC) to check out. Alternatively this type of platform could drive interest for products the customer wasn’t initially interested in creating a want mindset for a particular item.

For ECommerce you ideally want your AOV to be over $100 if you are looking to scale your sales using a paid medium like Facebook. Note that The top performing companies have an AOV of $102. So, start experimenting with these tactics today!