Here’s How to Increase Average Order Value in Your eCommerce Store

23 Sep 2015

You have loads of orders accumulated and products ready to be shipped to your customers, but the numbers are still small? Read how to calculate and increase average order value on your store and let us know was it helpful!

Aw, so you decided to finally embark and start an adventure called eCommerce?

That’s just perfect!

We’re sure your head is about to explode though.

Well, maybe not exactly, but we’re sure that it’s packed with marketing strategies, social media tips and tricks, orders, coupon codes and product descriptions.

Overwhelming isn’t it, and yet so exciting!

Especially if you decided to do everything on your own.

Without a great team to support you, entire adventure might seem exhausting and too hard to pull off.

Yes, you have to pay attention to every single detail.

But, in the end – orders are what counts.


Here’s our advice. But before we start, there’s couple of things you would want to do:

  • Calculate your average order value
  • Imagine running a traditional store

Average Order Value Definition

In order to increase it, we have to define it in the first place.

Calculating average order value is easy. All you need to do is to divide total order value with total number of orders on your online store.

Your calculation should look like this:

Total Revenue ÷ Number of Orders = Average Order Value (AOV)

You might firmly believe that your online store is doing great, but the fact is that number of orders means nothing if you do not observe it in correlation to the amount spent on the order.

There are so many ways to increase average order value, but it will always be strongly dependant on what your product is.

Still, even if you sell products that are not very expensive or luxurious, that does not mean that you cannot increase AOV.

And it most certainly does not mean that the numbers cannot be higher in future.

Imagine running a traditional store

All you need to do in the beginning is – imagine yourself in a traditional brick and mortar store.

Strategies that these sellers use daily do not differ drastically compared to online store owner’s tactics.

The biggest difference still remains the fact that online shopping makes the entire experience simpler, more enjoyable, comfortable and cheaper.

Your favourite online store is open at all times and you can find products that maybe are not available in your town, state or even a region.

Not to mention that they will arrive directly to your address.

Companies now have to respond to a complete different set of promotion channels and sales funnels.

Sellers, on the other hand, need to respond to user’s needs that have diversified and became chained to screens of different sizes.

However, psychology of a buyer remained unchanged and still insists on strategies that are proven and well effective.

Online shopping only modified buyer’s behaviour.

However it hasn’t made customers forget their old ways, neither has made sellers forget theirs – they were only upgraded.

That’s why, if you are into online selling, you have to (re)think every single tactic used in a traditional store and add new ones – your online store has to be fast, your navigation has to be impeccable and your checkout process reliable and short.

If not, buyers will be websites far from doing a checkout on your store.

Here’s a list of our simple, yet useful tips that you can easily incorporate on your online store and increase your AOV.

Buy X get Y

It will always be an offer you simply cannot resist – getting two products for the price of only one.

How many times have you decided to go for a product as soon as you have seen this sign?

Have you instantly thought that you might not need both pieces but remembered a friend or family member that would use it?

Have you thought it’s a great offer and you win by purchasing? There is not a single reason for you not to display same offer on your online store.

Make your offer visible, clear and concise.

Mark products clearly and avoid confusing your customers because it can often result in cart abandonment.

Put yourself in user perspective and try to understand whether your offer will be seen and what kind of impact it would have on you as a buyer. T

hat way, customers will finish the order with several items more in their shopping cart, and slowly, you will see that your average order value is increasing.

Add related and bundle products

You can add related and bundle products no matter what your product is.

If you have online store, you can use them. Let’s say your product is a camera.

Adding related products would mean offering additional lenses, cases, tripods or even photo albums, why not?

The only thing you should be careful about is adding products that complement the one that customer was looking for.

Offer ideas and suggestions.

It is important that you present additional products to your customers and make sure they’re aware that you offer other quality products other than the ones they’re looking for.

Even if they don’t put additional products into their shopping carts, they will know that your offer exceeds cameras only, and you will become their safe choice next time they need something similar.

If you try hard and make their shopping experience pleasant, if they feel safe, they will definitely come back.

Following the same logic, there is no reason why you shouldn’t add bundle products.

Statistics have shown that customers are prone to buying certain quantities if that will help them reduce the price.

Offer several pieces and lower the price, create an offer they cannot refuse and persuade them that you are the best choice.

Price is known to be the deciding factor when it comes to online shopping, so make sure you are the one to gain their trust.

Influence your buyers and make them buy bigger quantities. Result – your AOV increased.

Maybe, just maybe that is the safe road to achieve another great thing for your store – engage into B2B business that could bring so much to your store longterm.

Offer something in return

Offering something in return to your customers is always a good idea.

Make them think that its a good idea to spend a little extra on your store.

Offer them coupon code that will depend on the sum they have already spent and that they could use for their next purchase.

Simple adjustments will let you offer free shipping.

You can also create a pop up window that will show up before checkout and let your buyers know how far are they from getting a free delivery.

You can even go one step further and show them product that fit that sum perfectly.

Give them few moments, let them regroup and realise that what you’re offering shouldn’t be missed.

Another way is to set up certain amount and offer free same day delivery if the order corresponds to the amount.

Internet buyers are often impatient and cannot wait for the moment the postman rings.

Don’t make them wait and they will always come back for more.

Show recommendations

Research have showed that it’s more than useful to show which products were seen by the buyers that chose the same product.

Amazon mastered it, they will always show you “Customers Who Viewed This Item Also Viewed..” or recommendations based on your browsing history.

This kind of approach will give your buyers additional ideas and it will most certainly influence your average order value to increase.

Amazon always collects data and uses it to personalise shopping experience.

It will show you products that were often bought together, numerous coupon codes and discounts and all with one goal – increasing average order value.

Personalise your store

Try hard to find out what is it that your buyers want and need and adjust your page and product offer accordingly.

Make them want to register with you by excluding redundant fields and making the registration quick.

In return, use the data they shared with you to offer them products tailored for them. In the end, they are the ones making a decision.

It’s up to you on the other hand to present your products the best way you can and make it possible for customers to move through your store easily and offer them products they cannot resist while browsing.

Offer expires soon

Conveying the notion of urgency used to be reserved for traditional stores only.

But, there is not one reason why you shouldn’t use it on your online store.

Mark properly products that will be on your store for limited number of days or hours and make your customers hurry.

Learn from

When browsing their website, you get notified on how many people are looking at the same hotel, when was the last booking made and the number of available rooms in that particular hotel.

The fact that buyers are already on your store means that they need a product/service.

Encourage them by letting them know that the product will soon be out of stock, show similar products, offer discount if purchased right away and they will have more articles than planned in their shopping cart.

You guessed it right – your average order value will most certainly increase.

Wrap it nicely and offer a coupon

Have you considered offering your products nicely wrapped?

Your buyers would be delighted, that’s for sure. Gone are the days when you could compete with products in yellow paper bags.

Nowadays, you need to be different, creative and innovative.

Little things can make a difference. Its what makes your customers recommend you and come back.

You can also offer discount for the first purchase on your store or promise coupon codes and discounts if they recommend your store.

Buyers are often indecisive, so make sure you make it easy for them to choose.

One of the ways to make them spend additional money during checkout is giving them a gift card.

Make it possible for them to buy a gift code if they are having troubles deciding and stop them from abandoning their shopping cart. Have in mind that you are the one deciding what will be coupon code value.

Do some math and calculate amount precisely.

To sum up..

Inspire your buyers, always use fresh marketing tricks, help them choose and do them a favour.

Your buyers will be grateful, and your efforts to increase average order value will give results.

Having more orders on your store does not necessarily means that your average order value will increase.

That’s why you should make sure you combine several techniques we offered.

Experiment, observe your buyer’s behaviour and discover your own winning combination when it comes to increasing average order value on your online store.

If you are the store owner from the beginning of the blog post, and you need a team, contact us.

If you need help setting up coupon codes, bundled or related products, you can check out our amazing Magento tutorials.

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