How to Increase your Average Order Value (AOV)

In this blog post you'll learn:

• What is AOV and why it's important.
• Tips on how to increase it.

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In the world of e-commerce, there’s a metric that holds the key to bigger profits: the Average Order Value (AOV).

If you’re not familiar with AOV, let me explain. It’s the average amount spent by customers in a single transaction.

For example, if your store’s total sales for the month were £5,000 and you had 100 orders, your AOV would be £50.

A higher AOV means more revenue per customer, which translates to higher profits for your business.

Here are my key tips for increasing your AOV:

• Offer Bundle Deals: A great way to increase AOV is to offer bundle deals. This encourages customers to purchase more products in a single transaction by offering them a discount. For example, consider offering a discount of 10% when customers buy three or more items.
• Upsell Strategically: Upselling is when you offer customers a more expensive or upgraded version of a product they’re already buying. Upselling can be done before checkout or even after the sale. For example, if a customer is buying a small wax melt, you could offer them a larger wax melt in the same scent highlighting the longer-lasting benefits and better value for money.
• Product Recommendations: Suggesting complementary or related products to customers can increase the chances of them adding more items to their cart. For example, if someone is buying a candle, recommend a matching room spray or diffuser.
• Free Shipping Thresholds: Offering free shipping thresholds can incentivise customers to add more items to their cart to qualify for free shipping. For example, you can offer free shipping for all orders over £30.
• Limited-Time Offers: Limited-time offers create a sense of urgency and can encourage customers to take action quickly. For example, consider offering a discount to customers who make a purchase within the next 48 hours.
• Loyalty Programs: Rewarding customers for their loyalty is a great way to encourage repeat purchases and increase AOV. Consider offering a points system or free gift for certain milestones, such as reaching a certain spend amount.

Don't be afraid to get creative and experiment with different tactics to find what works for your unique brand.

You always want to be looking at ways of increasing your AOV, no matter the level it's currently at. This really is the key to more profit in your business.

I hope you find this useful, if you have any questions please let me know.