Are you a Shopify seller? If so, then you know how important average order value (AOV) is for success. 

Even if your store has a great volume of traffic and sales, having a low AOV can harm your bottom line. 

This article will explore the best tactics to improve your Shopify average order value and help you maximize your sales. 

So if you’re wondering how to increase the money customers spend on each transaction, read on!

What is average order value?

AOV measures how much each customer spends on average in your store. It can be a powerful indicator of your Shopify store's success and whether customers find value in their shopping experience.

By understanding AOV, store owners can adjust their pricing, promotional offers, and product line-ups to increase overall sales. This metric can also provide insights into customer loyalty, reflecting how much customers are willing to spend in a single transaction.

How to calculate average order value?

The formula for calculating AOV is straightforward: simply divide total revenue by the number of orders during a given period of time. 

For example, a Shopify store has total sales of $20,000 over one month with 500 orders placed in that same period. To calculate their average order value, you would divide $20,000 by 500 to get $40 per order.

As you can see, calculating AOV is simple, but increasing AOV to maximize profit can be tricky.

You can use Excel or Google Sheets to calculate your Shopify average order value. However, these tools have their limitations and can provide only basic calculations. 

Suppose you need deeper insights into your AOV and want to truly understand your business's financial performance, analytical tools such as TrueProfit can help. 

TrueProfit provides a comprehensive view of your store's financial performance by making uncovering insights within your data easier. The tool will automatically update your average order value and all of your store's crucial metrics in real time. This will save you from having to manually collect and update data repeatedly!

What is a good Shopify average order value?

The answer depends on various factors such as product cost, industry trends, and other external pressures. 

Generally speaking, it’s widely accepted that an AOV above $50 is considered to be ‘good’. Not only does this indicate that customers are buying higher-priced items from your website, but it also means they’re ordering more frequently in greater quantities. 

The higher your AOV, the better! It means customers are purchasing more from you with each purchase - all of which can contribute towards healthier profits for your business!

7 tactics to increase Shopify average order value

You can increase your Shopify average order value by using various strategies. We'll discuss them in more detail below.

#1. Offer discounts and free shipping

One easy way to increase your Shopify average order value is to offer discounts and free shipping. 

Discounts and free shipping incentivize customers to increase their order size, as they can save money on their purchases. They can help remove an obstacle that may prevent shoppers from completing their orders. 

For example, offer 10% off orders over $50 and free delivery for orders above $75. You’ll likely see a spike in your average order value. Customers will be more inclined to add more items to their cart to hit the discount threshold and qualify for free shipping.

You can increase the effectiveness of your discount or free shipping campaign by using an announcement bar on your store’s homepage. It will notify buyers of any current special offers. 

For example, if you have marked down prices on several products by 20%, you can create an announcement bar saying, "20% off Winter Collection - Shop Now". Not only does this motivate buyers to take advantage of the offer, but it also gives them quick access to discounted items. 

Furthermore, adding a notification saying “Freeship for orders with minimum $50” will encourage customers to add more items to their cart to qualify for free shipping.

The key to this method is to ensure that the discount or free shipping offer makes sense for your business model. For example, if you have higher-priced products, offering a percentage off may be more beneficial than simply providing free shipping on each purchase. 

Consider your profit margin on each item and decide which promotion will encourage customers to spend the most money in their order total. For this tactic to be effective, you want to ensure that the minimum order price is higher than your current average order value.

#2. Up-sell and cross-sell products

Up-sell and cross-sell products are two of the most effective ways to increase your Shopify average order value (AVO). 

Up-selling encourages customers to purchase a more expensive or upgraded version of a product they intend to buy. 

For example, if a customer visits your store and expresses interest in buying a basic laptop, you could convince them to upgrade to the premium version of the same model. By offering an attractive discount or bundle package, you can incentivize them to purchase something more valuable than they initially intended. 

Ultimately, this will lead to an increased AVO for your Shopify store and higher profits for your business.

Cross-selling is offering customers complementary products that match what they’re already buying. 

For example, if someone purchases one pair of shoes from your store, you suggest that they also get a pair of socks for 10% off. And if you combine up-selling and cross-selling items on your Shopify website, you can help boost your Shopify average order value by an average of 10%.

To make sure your up-sell and cross-sell tactics work, make sure you're highlighting the value of an upgrade or add-on product. Show your customers how they'll benefit from spending a bit more money by emphasizing the quality or features of the extra item. 

Also, feel free to nudge customers to complete their purchase with a limited-time offer. This is an effective way to encourage people who still need to decide about buying something extra!

#3. Offer product bundles

Another great way to increase your Shopify average order value is to offer product bundles. Product bundle pricing helps customers save money while making it easier for them to purchase related items quickly and conveniently. 

For example, let's say you own a clothing shop on Shopify and have a popular dress with an AOV of $50. By bundling the dress with a complementary item such as jewelry or shoes, you could raise the AOV from $50 to anywhere between $60-$100, depending on the value of the additional item. 

This is just one example of how offering product bundles can increase your business's revenues. Additionally, bundling products can make it more convenient for customers to find what they need in one place and purchase multiple items simultaneously.

To make this tactic work, remember to keep the bundle items related and complimentary. Customers should be able to see the value in purchasing multiple items together rather than separately. 

Additionally, ensure that the bundle pricing is attractive so that customers feel they’re getting a good deal. You could even offer exclusive promotions or discounts on bundles to further entice them. 

And also, be sure to clearly explain the benefits of buying in bulk!

#4. Optimize your product pages

Improving your product pages is another wonderful way to increase your Shopify average order value. A beautiful product page will encourage customers to add multiple items to their cart during checkout. 

For example, imagine you run an apparel store. You can create collections highlighting products that work well together, such as tops and bottoms or shoes and accessories. You can also use stunning visuals and persuasive product descriptions that make customers want to buy multiple items from a single page rather than just one item at a time.

To make the most of this tactic, ensure your products are described accurately and in detail. Customers should have all the information they need when deciding whether or not to purchase. Add as many images as possible so customers can get a feel for the product before buying it. 

Next, be sure to include related products on each page. Suggesting items that complement what the customer is already looking at can encourage them to add more items to their cart. 

You can also suggest items based on past purchases or similar products that other customers have bought to create an even better shopping experience for them.

#5. Allow customers to pay in installments

Offering payment plans is an effective way to improve your Shopify average order value. It's a simple tactic that any eCommerce store can use to drive higher sales without requiring additional marketing efforts.

Payment plans allow customers to purchase products and services from your store in installments rather than one lump sum. 

For example, if the average order value in your store is $100, you could offer customers the option of purchasing in three installments of $33 each over a period of time. This gives more people access to higher-priced items and increases the likelihood of making a larger purchase. 

Additionally, it helps build customer loyalty by providing greater convenience and flexibility with payment options. With payment plans, you can also enjoy larger profits due to extended customer lifecycles and longer-term relationships with shoppers.

#6. Create a customer loyalty program

Next, you can try creating a customer loyalty program to improve your Shopify average order value.

Loyalty programs give customers rewards, incentives, and discounts for their purchase history with your shop. By capitalizing on returning customers, you can increase the amount shoppers spend every time they visit your store. 

One example of a successful loyalty program is offering members exclusive discounts or rewards points per purchase. Customers can redeem them for products or services when they collect enough reward points. 

For example, if a customer has spent $500 on your Shopify store, you could offer them 10% off their next order as an incentive to return and make more purchases from you. These types of loyalty programs build customer relationships while also increasing the amount of each individual sale.

When creating your Shopify loyalty program, there are many important things to consider. One tip that’s often overlooked is how the rewards should be structured. Make sure to offer valuable rewards for customers to keep them returning for more. 

Offer tiered rewards so that customers can get better value from their purchases as they reach higher spending levels. That way, they’ll be encouraged to shop more frequently and spend more money on every order!

#7. Remarket to existing customers

Finally, remarketing is one tactic to increase your Shopify average order value. This involves using targeted advertising campaigns to reach out to previous customers with personalized messages, offers, and promotions designed specifically for them. 

Remarketing allows you to stay engaged with your existing customer base. And drive more sales by encouraging them to purchase more items or higher-value products when shopping with you again.

Popular channels for remarketing include email campaigns, display ads, and social media advertising. 

For example, one great way to upsell existing customers is through a targeted email campaign. By segmenting your audience based on past purchases, you can create highly personalized emails featuring relevant products and discounts tailored to them. This increases the likelihood of shoppers returning to buy more items, resulting in an AVO increase of up to 25%.

In case you’re lost on how to get started on this tactic, here is some advice: send emails and incentives to these previous customers offering discounts on future purchases! Doing this will encourage them to return for more, allowing you to increase your Shopify AVO in the long run.

Conclusion

The average order value (AOV) is an important metric for Shopify businesses, making it crucial to understand ways to improve this number. There are many effective strategies that can be used to increase your Shopify average order, from offering relevant discounts and promotions to creating an attractive checkout process. 

By implementing these techniques and tracking your progress with analytics tools like TrueProfit, you can ensure that your business is maximizing its earning potential. 

So don't wait any longer - turn your average order value into a powerhouse today!

See what proper profit tracking looks like at trueprofit.io

Irene Leander

Irene Leander is the Content Manager at TrueProfit. With over 5 years of experience in content creation and editorial writing for the eCommerce industry, she aspires to bring stellar value to eCommerce merchants with over-the-top articles.