Average Order Value (AOV) refers to the typical amount of money a customer spends in a single shopping transaction. Here are seven strategies to boost your Average Order Value:

Average Order Value (AOV) refers to the typical amount of money a customer spends in a single shopping transaction. Here are seven strategies to boost your Average Order Value:

In the dynamic world of e-commerce, increasing Average Order Value (AOV) is a key strategy for business growth. Here are seven strategies, widely recommended by industry experts, that can help you achieve this goal.

1. **Product Bundling**: Offer bundles at prices lower than the sum of individual items. This encourages customers to buy more than they originally intended, thereby increasing the total order value.

2. **Upselling**: Recommend higher-value or premium versions of the product the customer is considering. By highlighting additional features or benefits, upselling motivates customers to spend more than planned.

3. **Cross-selling**: Suggest related or complementary products to what the customer is already buying. Cross-selling can significantly raise AOV by encouraging customers to add more items to their cart.

4. **Volume or Tiered Discounts**: Offer discounts for purchasing in larger quantities or reaching certain price thresholds. This strategy incentivizes customers to buy more to unlock savings.

5. **Free Shipping Over a Threshold**: Set a minimum order value for free shipping. Customers will often add extra items to their cart to meet the threshold, thereby increasing AOV.

6. **Limited-Time Offers and Product Discounts**: Present time-sensitive promotions or exclusive deals that encourage customers to purchase more quickly and increase their order size.

7. **Shop-the-Look or Curated Shopping Experiences**: Allow customers to easily purchase complete outfits or curated sets with one click. This approach can lead to customers buying multiple products together that they might not have considered otherwise.

These strategies work by leveraging customer psychology, convenience, and perceived value, all of which can drive larger average purchase amounts.

AOV varies significantly depending on the niche, audience, and product types. For instance, in 2024, industry benchmarks predict AOVs of $85-$120 for Fashion & Apparel, $60-$95 for Beauty & Skincare, $140-$200 for Consumer Electronics, $35-$60 for Food & Beverage, and $100-$250 for Home & Furniture.

Understanding AOV, its importance, and how to optimize for it is non-negotiable for new store owners and Direct-to-Consumer (DTC) brands. By improving AOV, you can increase revenue, make marketing more efficient, help recoup Customer Acquisition Cost (CAC) faster, and provide room for reinvestment in growth.

Tools like Twinr can help convert an Ecommerce store into a fully-branded app without code, without delays. Platforms like Smile.io and Yotpo can make it easy to set up tiered rewards for loyalty programs. Shopify apps like Also Bought or Checkout Boost can add this feature to product pages.

Data shows that more people shop and make purchases on mobile devices than on desktops, but desktop has a comparatively higher AOV. Launching a mobile app can increase AOV by offering a smoother, faster, and more immersive shopping experience compared to mobile websites.

Emotionally connected customers spend twice as much, and loyalty programs help build that connection. Allowing users to build their own bundle via quiz flows or curated checklists can increase average cart size and improve user satisfaction.

Tracking AOV helps set better goals for customer acquisition, advertising efficiency, and product margin. Combined with CAC and Lifetime Value (LTV), it becomes a critical component of unit economics. A higher AOV means more flexibility to acquire more customers, invest in better experiences, and scale faster.

1. To boost AOV, consider implementing push notifications to alert customers about limited-time offers, product discounts, or newly launched products that may interest them, thereby encouraging larger purchase amounts.
2. In the realm of finance and business, a well-designed loyalty program can contribute to increasing Average Order Value (AOV) by fostering customer connection and encouraging the purchase of higher-value items, such as those resulting from shop-the-look or curated shopping experiences.

Read also: