Effective Ways to Increase the Average Order Value of Your Online Store

What is average order value?

Average order value (AOV) is the average amount of money each customer spends per transaction with your store. You can use this simple formula to calculate your average order value:

Total revenue / number of orders = average order value

If your store had a total revenue of RM1,700 split between 100 orders, your average order value would be RM17. This means that, on average, a customer will spend RM17 for each purchase from your store. To increase your average order value, encourage customers to add more, or more expensive, items to their cart. There are strategies that can help your store's average order value rise and encourage customers to check out with larger carts.

 

1. Provide product recommendations

Customers may become so focused on purchasing one of your products that they fail to look around for others. As a result, carts are fewer, and average order values are lower. To address this issue, consider including product recommendations on your product pages or checkout pages. You can reduce friction before checkout and increase average order value by profiling popular products or products that other customers purchased in addition to what's currently in the user's cart. Product recommendations offer a great way to get traction on those particular products.

 

2. Upsell or cross-sell complementary products

This tip entails adding product recommendations to your product page. Instead of simply suggesting other popular items from your store in this case, hand-pick products that complement the item in the user's cart, such as accessories or add-ons. For example, a laptop mouse or remote control batteries. This is essentially upselling and cross-selling. When you promote a complementary product, you are cross-selling, whereas when you promote a product upgrade or a more expensive version of the product, you are upselling.

 

3. Set order minimums for a discount

You can also increase your average order value by incentivizing customers to spend a certain amount of money. This could be a free shipping minimum. For example, provides free shipping on all orders over RM50. Other minimum order incentives include providing a coupon or a free gift. Giving a 15% discount on orders over RM25, for example, or a free gift on all orders over RM100. Use a promotion bar on your website to make it clear that you're offering a minimum order incentive.

 

4. Create packages or bundle products

If you want customers to purchase more items, try creating product bundles that cost less than if the same items were purchased individually. When you bundle products, you raise the perceived value of a customer's purchase. One great approach to product bundling is by offering a package of products that create the all-in-one solution for the desired experience.

For example, a Company bundles together a stove and accessories—the basic essentials to cook a meal while camping. This makes it easier for customers to get everything they need in one shot, while also eliminating the need to conduct further research. And you've sold more than one product instead of just one.