Do you wish to increase your eCommerce sale and earn more? To do so, you need to increase the Average order value of your store. In order to do so, you need to understand your customer, and how you shall use simple techniques that will increase your average order value and so does your sale.
But to understand it in a better way, let’s start by discussing what average order value is and how to increase your eCommerce sales with AOV.
What is Average Order Value?
Average Order Value (or AOV) is the average amount your customer spends on your store. To understand it better let’s understand this with an example. If your store’s total revenue is $2000, split between 100 customers your AOV would be $20.
You can calculate your AOV by this simple formula:
Total Revenue / Number of orders = Average Order Value
When you increase your average order value you clearly aim to increase your sale, increase your revenue, and finally increase your profit. To make this happen you will require to get more sales, or sales which will provide you higher revenue.
To help you do so, we have listed down 12 ways to optimize the average order value and increase your eCommerce sale.
How to Optimize the Average Order Value?
The goal here is to make sure that your customers purchase more from your store. So keeping that in mind, here are the ways you can increase your average order value.
1. Offer Free Shipping
The most common way to grow your sale is to eliminate any extra charges for the customer. Well, this is what your customer thinks. You need to convince your customer to buy from you and for that, instead of charging them extra for shipping, you shall just add the shipping charges with the cost of the product itself.
This is a very old trick, but when asked to the customers 75% of them said that free shipping will make them more likely to buy online. Hence, you can optimize your eCommerce store, and shipping charges to make sure it seems a fair deal to your customer.
2. Offer Discount
Discounts aren’t overrated. They create a zeal with your customer to make a purchase from your store, that too at a lower price. So how will it increase your average order value? By increasing the number of sales.
About 2/3rd of the customers admitted that discounts can make them purchase more online. Moreover, a much better idea would be sharing reward points. This the new eCommerce trend where a customer gets a reward when he or she purchases from you.
Customers can use these rewards to make a purchase from your store in the future. As you shall see this strategy will increase your eCommerce sale and which would eventually increase your average order value.
3. Provide Bundle Deals
The next best to optimize your store in order to grow your online business is by creating bundle deals. In this, you can create package items that are similar or focused on providing similar values.
For eg: if you are in the fashion industry, you can bundle up 6 T-shirts in a deal. Or if you are in a grooming industry, you can bundle up all hair products like shampoo, conditioner, oil, gel, etc in a package deal.
This makes customers spend more on your store which would eventually increase your average order value and giving better results. The goal here is to make the bundle look more profitable, hence you can even give a discount on the overall package.
4. Execute the First Time Offer
The hardest thing for any eCommerce store is to find new users. It is because people usually hesitate to buy from a new store. To eliminate this part of the deal, you shall give your customer something that makes them buy from you, even if they visited your store for the first time.
To do so, First Time Offer can really be a profitable idea. In it, you shall provide your first time customer with some special discount. Maybe 10% off or 150 free reward points. These offers spread like a wildfire making it among the most profitable ideas to get more new customers.
Once your customers purchase from you, and you give them a good service( and after service) it’s easy for them to trust you and make another purchase. Hence you will find that it will increase your average order value and grow your online business drastically.
5. Add Cross-sell to Upscale
We have already discussed how you can increase your average order value by creating bundle deals and how it can increase your eCommerce sale. In Cross-sell, you share items that aren’t similar but can be simultaneously bought. The best example of this is the “You May Also Like” section of Amazon.
On the product page, you can add items that can be purchased or serve similarity with the product itself. For eg: A person on the product page of a Protein Powder, may also like to purchase a shaker.
Similarly, suggesting two distinct items that are different but can be bought together can increase your online sale, which will eventually increase your average order value.
6. Introduce Loyalty Program
Above we discussed how you can find new customers and make them buy from your store. Now you must focus on making your customer buy from you again and again. But before that, you will have to make sure that your customer service is top-notch and your customer trusts you.
Now, to make your customer make more purchases from you, again and again, you can introduce a Loyalty program. A special offer for interested customers to gain extra benefits from purchasing from you. The best example would be, Amazon Prime service.
Surely you don’t need to go sky and beyond to match up to amazon, but can create your own program. We suggest you can create a loyalty program to get faster delivery. Or a subscription program to get the chosen product to deliver directly at the home, without any need to make a purchase every month or so.
This will eventually increase your average order value, as people would be more tempted to make use of the loyalty program that they paid for. Hence, increasing your online sale and your eCommerce business.
7. Offer Time-sensitive deal
While we are on the topic to make your customers purchase more from you, time-sensitive deals are the best ways to do so. Ever heard of the flash sale? It makes people wait for the deals to go online and make a purchase.
The customer gets a set amount of time to purchase the desired product at a discounted price. You must note that the frequency of discounts will determine the value and excitement of your customer.
If you come up with a similar kind of discount the value of it will drop, Hence make sure that your customer stays excited and waits for next time there is a discount/deal on your store. As the sale increases, it will increase your average order value too.
8. Show off their savings
Till now your customers are saving a lot of money by purchasing from your store and we believe they are happy too. But in order to remind them that they are saving more, you need to show them the amount of money they saved.
This won’t take up your resources or time, but it would leave an impact on your customer, leading to the words of mouth advertising. This will bring you more sales and eventually increase your average order value.
9. Offer Flexible return policy
Today most of the eCommerce stores are stepping back from the most effective trick to grow your online sales. The return policy. Your customer will make a purchase based on the two factors:
- The deal you are offering for the product
- The trust in your eCommerce store
We have already shown some of the best ways to offer great deals and increase your average order value. Now you must make sure that your customer trust you. Not just for purchasing from you, but also the after-sale service, that if anything goes wrong you will try to resolve the issue as soon as possible.
Also Read – Reasons Why eCommerce Startups Fail
10. Multiple Payment Options
Next Step to build trust and grow your online sale is to provide multiple payment options . You need to eliminate every possible huddle that’s stopping them to purchase from your store.
Providing multiple payment options is a great way to gain your customer trust and increase your average order value also make it easy for them to make a purchase, no matter what method of payment they choose.
11. Use Chatbots and e-mails
There are chances that your customer might just add the product to the cart and leave your store. In this condition, you have a potential customer willing to buy a product. Your goal must be to make sure he or she makes the purchase.
Hence you can read Chatbots or car abandonment emails. They tend to increase your sale by 30% to 600% and increase your average order value drastically. In order to learn more, we recommend you read the Top 9 ways of using abandoned cart emails to grow profit.
Also Read – Best Chatbots for eCommerce
12. Showcase Your Product
Lastly, in an attempt to increase your average order value, you need to make sure that all your products are presented very well. You must always and must use professional images in your eCommerce store.
About 75% of your customers rely on the product image. Hence getting some good looking product images for your store is more than worth it. To do so, you can hire the best Product photo editing service for eCommerce. This will save you a lot of time and increase your average order value like nothing else.
With these easy ways to increase your average order value, you will surely see some positive change in your store and your customers. Today every customer wishes to get the best deals, along with some added benefits of time-saving and convenience.
Hence in order to make sure that your customer is satisfied, you must take feedback. The ways mentioned above to increase your average order value are among the best to increase your sale and revenue.
Not just for a pre-established eCommerce store, but also new eCommerce stores. So make sure you make use of this amazing guide and get the most out of your efforts.We highly recommended to read this blog How Customer Feedback can boost your eCommerce business.