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How to Increase Average Order Value of Your online Shop?

How to Increase Average Order Value of Your online Shop?

What’s the ultimate goal of your eCommerce store? To make money and increase revenue, right? If yes, then one of the best ways to achieve this goal is by increasing your average order value (AOV). Average order value is the average amount of your customer which spends on placing an order on your store and AOV metric is a key metric to learn of your customer’s purchase habits.

You can easily  and quickly find your average order value using this simple formula:
Average Order Value = Total Revenue / Number of Orders

If you use Google analytics to track your customer history then you can also use their additional facility of tracking report of Average order value. You can simply track your AOV with just enable E-commerce analytics setting.

1) First Sign into your Google Analytics account and click the Admin in the left menu bar.
2) Then, navigate to eCommerce Settings under the View column. Turn on Enable eCommerce and click the Submit button.
3) After Enabled E-commerce tracking in Google analytics go to, Conversions » E-commerce » sales performance

You’ll see a chart with many data like Total Revenue, Conversion Rate, and Average order value. Once you understand your Average Order Value you can fix the financial health of your store and use this information to make better business decisions like ad spending, product pricing, user experience and more.

1. Offer Free Shipping with a Minimum Order Value and Easy Returns

Free delivery has a major impact on e-commerce conversions. This is the first commonly used tactic to increase Average Order Values because it works really great for most e-commerce online businesses. If your product price is very affordable but the additional shipping charge could reduce total transactions. Infect 60% customer quit their shopping cart during the checkout process due to extra shipping charge and process fees. Another most impactful tactic is easy to return their product. Because 81% of customers are delaying to purchase their favorite product that charge for returns.

2. Cross-sell Products and Upsell Products

An Upsell & Cross-sell is a very impactful part of your marketing strategy because it maximizes your online store's sales potential. The goal of this tactic is to suggest similar products to your customers before they check out their product so they purchase more products and increase their order values.
With the use of an upselling tactic, you are suggesting the most expensive version of the same products or best & cheapest price product to your shoppers.

For example, If someone purchases a girl T-shirt then you recommended a more similar product like recently uploaded, most reviewed & your non-selling girl's t-shirts on your product page OR cart page. With the use of the cross-selling tactic, you recommended your customer the most relevant products. For example, If your customer is looking at a dress you might have to suggest matching purse that looks so wondrous with it.

3. Target Customers by Purchase History

When you know the purchase behavior and history of your shoppers then you can use that data to send them to highly personalized offers and discounts to drive more sales and increase conversion. Not only this technique is powerful for increasing your average order value, but it can also improve the user experience and make your store more trustworthy.

4. Bundling of Your Products

Want to give your customer to even more reason to love you? If yes, then providing them a package deal or a bundle of products that is a cool way of selling two or more related products. For example, You offer your customer a beauty kit that includes makeup-Box, makeup wipes, and a professional makeup kit bag with the lowest price which attract more female customer. It is suitable for the customer and also impactful for every store owner to increase their average order value.

5. Use Live Chat to Boost Sales

Live chat and support system can provide consumers with quick and convenient answers that help push them to purchase and make your store more loyal. It also provides eCommerce online businesses with another opportunity to upsell their products in real time. Current data shows that 52% of shoppers are more likely to repurchase from a store who gives live chat system.

6. Offers and discounts

While offering discounts on purchasing product can still increase your profits and your revenue. You can offer the time-sensitive deal which is great for boosting sales and increase your average order value. For example, "Get 30% off for the next two days". You can also show time-sensitive deal with a countdown timer which displays to specify exact dates and time. There are many different types of discount you offer your customers like BOGO, volume discount and Spend Amount - Get Discount, etc.

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