How to increase AOV for your Shopify Store

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Malomo Staff


Increase aov blog

What is average order value?

The amount spent by a customer while placing an order at your store is known as the average order value (AOV). The average order value is determined by dividing the total revenue of your store by the number of orders placed.

With Shopify stores facing increased competition and weaker performance from Facebook ads, growing AOV has become a primary focus in 2022.

How to Raise Your Shopify Store's Average Order Value

There are dozens of tried and tested methods to increase your store’s AOV. Here are the methods we recommend.

Offer free delivery, discounts, or gift cards

This is one of the simplest strategies to boost the average order value of your store. Not every buyer wants to pay for shipping. This tactic was also used by Amazon before Amazon Prime was available, which offered free shipping on orders over $25. You can also provide discounts or gift cards.

Customers will be drawn to your store as a result of this, and they will be more likely to buy from you. Additionally, as the number of clients grows, so does the average order value.

Leverage product bundles

Offering product bundles can have an impact on your average order value. You can group similar products together to give buyers more bang for their cash. If a customer comes in to buy a shirt, for example, you can show them the product bundle that includes pants.

This strategy can be used to find the best products to bundle together. Test different product bundle campaigns to see which one gets the highest conversion rates for your Shopify store, then use the best one.

Because product bundles come as a package, frequently at a discounted pricing, a customer who is looking to buy one product may be attracted to buy other things they wouldn't have bought otherwise.

Along the same lines, recommending products to customers as a way of creating a personalized bundle is a good idea.

Instead of providing a customer with a pre-packaged bundle of similar things that they may purchase together, a limited list of recommendations could be provided for them to choose from if they wish to purchase them together at a discounted rate.

For example, if a customer wants to buy a razor, a pair of replacement razors and a protective travel bag might be supplied to them at a discounted price in addition to the razor.

The customer would not be required to buy both of these extra things, but they would be given the option to purchase at a reduced price.

When it comes to product packages, emphasize the discounts. Customers are more inclined to acquire a product bundle if they clearly comprehend how much money they will save by purchasing the products together rather than separately.

Show expected delivery dates on product pages

Every customer appreciates the ability to choose their preferred date and time for delivery of their orders. But the reality is that not everyone provides that option, and most people do not have that option while shopping.

You can use apps like FenixCommerce to let your customers see the expected delivery date of their orders before they order to help boost conversions.

Set up branded tracking pages

Instead of sending customers to a tracking page owned by FedEx or UPS, brands are starting to leverage their own branded tracking pages. Basically, customers get to see their order updates on your website instead of a shipping carrier’s website.

This is a great way to drive AOV because branded tracking pages can be used to provide personalized product recommendations for every customer.

Use first-time offers/sign-up discounts

If you're planning a marketing campaign to attract first-time customers, first-time offers are a great way to drive conversions. A few ideas you could try are;

  • For first-time buyers, offer a unique incentive.

  • For returning customers, offer them to sign up for your email list to receive a discount.

Offers to sign up for emails are very popular. If you're an avid online shopper, you'll notice them all over the place.

You can also run promotions without requiring people to sign up for emails. These are excellent ways to entice more commitment-averse customers to do business with you.

Among the most popular choices are:

  • A discount on a first purchase in the form of a percentage or a dollar amount.

  • Over a minimal price, a percentage or dollar amount off a first purchase

  • If you make your first order, you will receive free shipping.

  • With your first purchase, you'll receive a free gift.

  • Cross-sell and up-sell items should be prominently shown.

Upsell and cross-sell complementary products

Upselling and cross-selling are as old as the phrase "Would you like fries with that?" Bundling, upselling, and cross-selling are all about persuading customers to buy complementary or improved versions of the things they're already planning to buy.

And, like any method, it might have diminishing returns if used too often. Don't oversell; instead, recommend like a friend would. Nobody likes feeling as if they are being sold something. Your upsell should appear helpful and sincere, as if it were a recommendation from a friend.

Instead of merely suggesting other popular items from your business, hand-pick accessories or add-ons that go well with the item in the user's cart. A mouse for a laptop, for example, or batteries for a remote control.

To boost the likelihood of a purchase, offer low-value upsells. If someone is out to buy $50-$100 worth of products, it's difficult to persuade them to buy another $100, but it's much easier to persuade them to buy a $20 product that compliments their purchase.

Experiment with upsells after a purchase. If your brand is concerned about influencing conversion rates when bundling complimentary products, a low-risk method to test is to offer upsells on cheaper products. You can analyze the purchase data to figure out which things individuals buy together in this way. Then design a pre-purchase bundle for the same.

Establishing a customer loyalty program

Starting a customer loyalty program will help you create a solid relationship with your customers while also raising your Shopify store's average order value. The loyalty program entails providing incentives to loyal customers who return time and time again.

Customer service can boost sales

Giving customers a simple way to contact you can also help you increase sales and revenue. Live chats are an excellent approach to not only resolve client issues, but also to recommend items and upsell.

A post-purchase timed discount or a free gift for a limited time is a discount that only lasts for a short period of time. This offer can be included on your transaction confirmation page or in an email receipt that you send to your customer automatically.

Put a free shipping bar on your website

Free shipping is something that we all appreciate. Customers nowadays have come to expect it (thanks, Amazon Prime).

As a result, retailers use free delivery to boost the average order value on their sites. As customers add products to their shopping carts, the bar dynamically changes. This little widget is an easy method to inspire shoppers to add more things to their baskets in a world where customers appreciate free shipping.

Consider how many times you've stuffed your cart with extra items only to receive free shipping. I'm not sure about you, but I've done it more times than I can remember. Work is available with free shipping. It's time to put this to the test if you haven't already.

BOGO (Buy One, Get One Free) Offers

BOGO stands for Buy One Get One, and it's a classic retail strategy for moving more merchandise. Shopify stores have created similar campaigns on their own sites to encourage online buyers to purchase more products from their catalog.

By doing so, you are gaining their trust and increasing their chances of acquiring higher-value products than if they were new customers.

Improve AOV with Malomo’s branded tracking pages

Malomo is the leader in branded order tracking for Shopify stores. Here’s why hundreds of Shopify stores use Malomo to grow their business.

Use Product Recommendations to improve repeat purchases

Malomo offers personalized product recommendations on your tracking page to improve the product discovery process as well as increase AOV. The user experience is enhanced by the ease of use and the availability of more (and appropriate) options. If you have a subscription brand, you may want to pay closer attention to your cross-sells and upsells to make sure it makes sense. You can also use predictive analytics tools to help you with this.

Customized branded tracking pages

By creating your own tracking page, you raise brand recognition. Your customer will see all of the tracking information as well as the contents of the shipment. It's also an opportunity for your clients to visit your social media pages and continue shopping at your store.

Real-time shipping analytics

Malomo provides comprehensive shipment analytics, such as courier analytics, tracking page analytics, upsells, and more.

To learn how Malomo improves your AOV, schedule a demo with our team or start your free trial today!

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