Ways to Increase Average Order Value

Ways to Increase Average Order Value

Average order value calculates the average amount spent per order and is a key metric for understanding your customer’s purchase habits. 

You’ll require to know your total income and the number of orders to calculate your AOV accurately. An eCommerce platform calculates these values, so sellers do not play with numbers. 

Using tried and tested marketing concepts such as cross-selling, upselling, loyalty programs, or product bundling on your website is a powerful way to significantly increase your average order value.

The average order value can be calculated as:

Average Order Value = Total Sales Revenue / Number of Orders.

Benefits of Increasing Average Order Value

Increase in income and profit

With an increase in the average order value, there is also an increase in revenue and profit of the eCommerce business. If there is a visible growth in the average order value, the more you will be able to invest in the industry and gain profit at the same time. The increase in business is equivalent to the rise in orders.

Cost-effective marketing return

It is necessary to keep an average order value to a specific value. If the average order value is more than a business’s amount on marketing, there are low chances of profit after costs and taxes deduction. However, if there is a positive shift in the average order value, the marketing becomes more profitable.

Sell more inventory

If you possess a brick-and-mortar, online store, or website, you can sell more of your stock by accomplishing a good average order value plan. You can sell more products if there is an increase in AOV. 

Ways to Increase Average Order Value

Provide bundle deals 

Combine your orders that go sufficiently together or commonly sell together as “bundles.” 

Providing bundles will encourage customers to purchase a part or set of products, increasing the average order value.

They can also be offered discounts for buying more than one product. 

Create minimum order for free shipping

One of the ways to increase your average order value is by offering free shipping on minimum orders. You can set a specific order limit to provide free shipping to the customers.

The free shipping offer can be displayed on the main website page, a particular product page, and the checkout page.

A promotion bar can act helpful to offer a minimum order shipping offer. 

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Exceptional discounts on bulk orders

Offering discounts and offers on bulk orders is a good idea to increase sales and average order value. Customers are always attracted to low prices and words on offers like ‘cheap,’ ‘offer,’ ‘discount,’ ‘free,’ and many more like that. 

Give a gift card

Who doesn’t love a gift? Offer gift cards or coupon codes to the customers to purchase a specific number of orders. Attaching an expiration date on the coupon or gift card increases the order value and the customer’s attention. 

Upselling complementary products

Upselling is when you advertise a product upgrade or a more expensive version. An upsell also means when you sell more of the same product. Customers most likely buy more of what they love, mainly if it will be out of stock at some point.

Cross-selling products

A cross-sell is an item that a customer may like, which is different from the product they are viewing. When looking for a particular product, you get recommendations for purchasing products related to the same. This can increase the visibility of your product as well as views on your website that can increase the average order value of your business. 

Start a customer loyalty program

If customers feel loyal to their companies, they are most likely to shop more from the same place. Loyalty programs are a powerful way to build customers’ trust and increase order value. They are notable for getting people to add more to their orders and help increase customer retention.

Provide first-time offers

Suppose you are a small business or a newly made business. In that case, you can offer your customers a one-time discount when they order multiple items of a popular product or buy multiples of a popular product or a whole bundle deal for individuals who have not shopped with you earlier.

Offer limited-time deals

You can offer time-sensitive deals applicable for a limited period. This cannot increase the average order value for the long term but may improve the value for a short duration.

Offers applicable for 48-72 hours are a great way to attract customers and are pretty easy to execute. With a limited offer, customers get eager to buy the specific product as they are promoted on social media and website banners.  


Calculating an average order value can help you understand how well your company performs. It permits businesses to track customer behavior, identify different spending segments, and find the most profitable channel.

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