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How to increase the average order value on your eCommerce site

January 5, 2023

Increasing the average order size on your eCommerce site requires a smart marketing strategy, but importantly, not a lot of investment. Too often, brands shy away from attempting to increase their average order size because they presume this means raising prices. But getting shoppers to spend more at your online store doesn't mean you need to hike prices. Here, we look at seven proven tactics for getting customers to spend more when shopping on your website. 

What is average order value?

Using the average order value (AOV) metric helps merchants measure the amount of money a customer spends during a single transaction. It's calculated by dividing the total revenue generated by the number of orders placed.

For instance, if your store generated £10,000 in revenue from 100 orders, the average order value would be £100 (£10,000 / 100 orders). Knowing your AOV metric is good as it helps merchants understand how much money each customer spends on your site. Knowing the AOV also helps identify opportunities to boost revenue by encouraging customers to make larger purchases.

How to increase the average order value on your eCommerce site

1) Offer finance options, such as buy now pay later

Allowing your customers to finance their purchases increases their chances of buying more. With finance methods like buy now pay later (BNPL), where shoppers spread the cost over set instalments, customers have more flexibility to spend that little bit extra. 

Subsequently, they can feel more confident when browsing your online store and enjoy greater spending power. Finance options like BNPL can increase average order values by a significant amount. And even when finance isn't used with AOV in mind, it can alleviate the financial burden on customers and allow them to buy the products and services they want. 

2) Offer bundle deals

Offering bundle deals or package discounts can effectively increase average order values as it encourages shoppers to purchase more items at once.

For instance, let's say you sell back-to-school items like pencil cases, books and pens. If you bundle these items together at a discounted price, shoppers may be more inclined to purchase the bundle rather than just one item. As a result, you'll increase the average order value for that transaction.

Bundle deals or package discounts can also encourage customers to purchase items they might not have considered. Customers interested in purchasing a single kitchen gadget may be more likely to buy a bundle of kitchen gadgets at a discounted price.

Offering bundle deals allows your online store to boost average order value and increase revenue by combining similar products. 

3) Cross-sell related products

Cross-selling is when an online store suggests related or complementary products to customers as they shop. It can act as a clever method for increasing average order value by encouraging customers to add more items to their orders as they go along.

How does it work? If a customer has an expensive smartphone, they might be interested in buying a protective case. But the case isn't the only item that can keep the phone safe – other products, like a screen protector, can also help maintain the phone's condition. Suggesting this type of item during the shopping journey can help maximise the average order value. 

Cross-selling can be done through various channels, such as product recommendations on product pages, personalised email campaigns or upselling offers during checkout. By suggesting related products relevant to the customer's interests and needs, you can increase the chances of them adding more items to their order and boost your store's average order value.

4) Upsell higher-priced or premium products

Upselling encourages customers to upgrade to higher-priced or premium versions of a product they are already interested in. Again, a customer buying a smartphone may opt for larger storage, a bigger screen size or a higher-spec version of the same model. 

Like cross-selling, upselling can be done through a wide variety of channels. But it's often most successful highlighting the product when a customer is looking at the same, lower-spec model on your website. 

5) Offer free shipping

When customers see that they have to pay for shipping, it can deter them from making a purchase. By offering free shipping, you can remove this barrier and make it more attractive for them to add more items to their order.

If a customer is interested in purchasing a single shirt from your eCommerce store and it costs £20 with a shipping fee of £5, the total cost for the customer would be £25. However, if you offer free shipping for orders over £35, the customer may be more likely to add a second shirt to their order to take advantage of the free shipping offer. 

Offering shipping free of charge can encourage shoppers to make larger purchases, increasing the average order value. It's important to note, however, that offering free shipping can also add additional operating costs, so it's important to carefully consider the potential impact on your business before implementing this strategy. For instance, you may decide to offer free shipping for a limited time only. 

6) Use limited-time offers or promotions

Using a limited-time offer or promotion can grow customer appetite to spend more at your store, as it encourages them to take advantage of a deal that’s only available for a finite amount of time. 

Someone shopping for furniture may be more inclined to buy a set, such as chairs and the table, if they know they can pick them up at a discounted price. Therefore, it’s an effective way to encourage shoppers to make larger purchases and help with the average order value for your eCommerce store.

7) Make it easy for customers to find products

Customers may be less likely to make a purchase if it's difficult for them to find what they're looking for. That's why it's important to ensure that your website is well-organised and easy to navigate, as it'll help shoppers find the items they need with ease. 

Not only can this help with the average order size, with customers buying more thanks to seamless navigation, but it can also help avoid checkout drop-off and remove friction from the buying process. Use clear and descriptive product titles, as well as relevant and accurate tags, and implement a search and filter functionality to give your shoppers the best possible experience. 

Increasing the average order size

There are several strategies eCommerce businesses can use to increase their average order value, from offering bundle deals or package discounts to cross-selling related products and, most importantly, offering finance options. By implementing these strategies, you can encourage customers to make larger purchases and boost business at your online store with larger average order values.