An image featured on the '10 Proven Strategies: How to Increase AOV' post by Advertise Purple. It shows a graph with an upward trend representing AOV growth and a person holding a calculator, symbolizing effective AOV increase strategies.
January 6, 2024

10 Proven Strategies: How to Increase AOV

Are you looking for ways to increase revenue and profitability for your ecommerce store? Look no further! In this blog post, we will explore 10 proven strategies on how to increase AOV, which will ultimately boost your store’s growth and success. Ready to maximize your profits? Let’s dive in!

Key Takeaways

  • Understand AOV to maximize ecommerce store growth
  • Offer product bundles and utilize upselling/cross-selling techniques to increase AOV
  • Establish loyalty programs, introduce time-limited promotions & gamification, provide personalized shopping experiences for customers

Understanding Average Order Value (AOV)

The term AOV is an abbreviation for average order value, a metric that quantifies the typical dollar amount spent at checkout in an ecommerce store. AOV, also known as the average dollar amount, is a critical key performance indicator (KPI) for online businesses, as it helps assess the health of a business and the effectiveness of marketing and pricing strategies. To calculate average order value, the first step is to sum up all the sales made. Then, divide this total revenue with the number of orders placed. For instance, if an ecommerce store generated $12,000 in revenue from 900 orders, the AOV would be $13.3.

Boosting AOV can bring substantial advantages to your business by enhancing profitability without requiring considerable additional marketing and advertising expenditure. Furthermore, a higher average order value contributes to an enhanced customer lifetime value (LTV), a crucial metric for business health. Focusing on increasing AOV from existing customers can be a lucrative endeavor, as it potentially raises profits with minimal cost.

Various strategies influencing customer behavior can be implemented by businesses to elevate AOV. In the following sections, we will delve into 10 proven strategies to boost your average order value and maximize your ecommerce store’s growth.

Implement Free Shipping Thresholds

An image featured on Advertise Purple's '10 Proven Strategies: How to Increase AOV' post, showcasing a person holding a box with a free shipping label, emphasizing one of the effective strategies discussed in the article.

Implementing free shipping thresholds is a potent method to elevate AOV. Free shipping thresholds refer to the minimum purchase amount customers must reach in order to qualify for free shipping. By setting a minimum order amount for free shipping, you can encourage customers to add more products to their carts, ultimately increasing your average order value.

A recommended percentage increase for the free shipping threshold is 30%. To calculate the free shipping threshold, determine your average order value and add 30% to it. Alongside free shipping thresholds, you can also offer variations such as volume discounts or set discounts for orders above a certain threshold to further incentivize customers to spend more.

If customers’ purchases fail to meet the required amount during checkout when implementing free shipping thresholds, it’s crucial they receive a reminder. This notification can create a sense of urgency, prompting customers to add more items to their cart and increase their order value.

Offer Product Bundles and Package Deals

An image featured on Advertise Purple's '10 Proven Strategies: How to Increase AOV' post, displaying a person holding a bundle of products with discount labels, showcasing one of the strategies discussed in the article.

Offering product bundles and package deals is another potent strategy to elevate average order value. Product bundling is a pricing strategy where a package of products is offered at a lower cost than if the same items were purchased individually. This strategy increases the perceived value of a customer’s purchase, thereby increasing AOV.

Examples of bundle deals may include promotions such as “buy two and get a free gift” or “buy three and get a fourth free”. Offering bundle discounts for complementary products is an effective strategy for cross-selling to customers. For instance, Lively, a clothing store, implemented bundling for online purchases, offering a slight discount if two or three bras were bought at once. As a result, over 50% of their sales increased, significantly boosting their average order value.

Categorizing products is essential for an ecommerce store to maximize AOV through bundling. Additionally, when establishing pricing for bundled products, it is important to consider the cost of the additional products and the desired profit margin. Presenting alluring bundle deals can induce customers to buy multiple items in a single order, thereby boosting your average order value.

Leverage Upselling and Cross-Selling Techniques

Upselling and cross-selling are potent techniques to elevate average order value. Upselling is the process of encouraging customers to purchase more expensive versions of the same product or multiple products. Cross-selling, on the other hand, involves recommending complementary products to customers.

Successful upselling and cross-selling techniques can substantially increase revenue and AOV. For example, after implementing upselling strategies, Mark Thompson observed that AOV increased to $146.22. Jonathan Aufray recommends directing customers to an upsell page after checkout and offering a related product at a discounted rate.

Retail businesses can also leverage upselling and cross-selling by reducing the merchandise on the floor, forcing customers to interact with salespeople, and providing opportunities for upselling or cross-selling. Efficient utilization of upselling and cross-selling techniques can prompt businesses to persuade customers to buy higher-value items and complementary products, thereby boosting the average order value.

Create Exclusive Offers for First-Time Customers

Attracting new customers is vital for any online business, but converting first-time customers into repeat customers can be even more beneficial in terms of increasing average order value. Providing exclusive deals to newcomers, like a one-time discount when buying multiple units of a hot-selling product or unique bundle deals, can lure first-time customers to splurge more on their initial purchase.

By providing attractive discounts, businesses can effectively convert new customers into loyal, repeat customers. Loyal customers are more likely to make future purchases, positively impacting AOV and revenue growth.

In addition to offering exclusive deals, businesses can also utilize special offers and marketing campaigns to encourage first-time customers to make larger purchases. These strategies can help increase average order value and foster a loyal customer base for your online store, making it stand out among other online stores.

Establish a Customer Loyalty Program

Setting up a customer loyalty program is yet another potent strategy to boost average order value. A customer loyalty program is a retention strategy designed to foster strong relationships with customers and maximize customer lifetime value.

Loyalty programs have the potential to boost average order value significantly. Studies have found an increase of up to 14%. A loyalty program provides incentives to customers to accumulate points, which can lead to a substantial rise in average order value.

Claire’s, an accessory store aimed at teens, recently implemented a loyalty program. Customers can gain cash back incentives of $5 for every 100 points they earn. Retail management systems, such as Lightspeed, can also enable the implementation of a points system to incentivize customers to make higher-value purchases. Setting up a customer loyalty program allows businesses to not just elevate AOV, but also strengthen customer retention and cultivate enduring relationships with their clientele.

Utilize Time-Limited Promotions

Time-limited promotions refer to exclusive deals, markdowns, or offers that are up for grabs for a set duration. These promotions create a sense of urgency and motivate customers to take advantage of the offer before it expires, thereby increasing average order value.

Examples of time-limited promotions include flash sales, limited-time discounts, and special offers. To effectively utilize time-limited promotions, businesses should specify a definitive expiry date, provide exclusive offers, and utilize multiple platforms to advertise the promotion.

Time-sensitive deals can create urgency and encourage higher conversion rates during periods of lower activity, ultimately increasing the average order value and boosting overall revenue for your ecommerce store.

Showcase Bulk Order Savings

Providing savings on bulk orders is an additional method to boost average order value. Bulk order savings refer to discounts provided to customers who purchase a certain number of items or a certain amount of money. These discounts incentivize customers to make larger orders, which can help businesses increase their AOV and reduce the costs associated with processing multiple orders.

There are two main types of bulk order savings: quantity discounts and tiered discounts. Quantity discounts are applied when customers purchase a specified number of items, while tiered discounts are applied when customers purchase a specified monetary amount.

To implement bulk order savings, businesses can provide discounts for customers who purchase a certain number of items or a certain amount of money, as well as offer free shipping or other incentives to encourage larger orders. Showcasing bulk order savings can effectively increase average order value and boost the overall profitability of your ecommerce store.

Introduce Gamification and Contests

Gamification and contests represent novel strategies to elevate average order value. Gamification involves implementing game mechanics and experience design to stimulate and motivate people to reach their objectives. By introducing gamification and contests in your online store, you can create engaging experiences that encourage customers to make higher-value purchases.

Loyalty programs, leaderboards, and virtual rewards are examples of successful gamification strategies that can be employed to increase AOV. Similarly, hosting contests can potentially increase average order value by providing customers who purchase frequently with prize packs.

By integrating gamification and contests into your ecommerce store, you can create an engaging and interactive shopping experience that motivates customers to purchase more products, ultimately increasing average order value.

Provide Personalized Shopping Experiences

Tailored shopping experiences, accommodating individual customer preferences and needs, can notably enhance average order value. Leveraging data to create more personalized experiences for customers can encourage them to spend more on your online store.

Data can be used to create personalized and targeted shopping experiences, such as:

  • Offering product recommendations based on browsing history or past purchases
  • Providing a tailored shopping experience
  • Increasing the likelihood of higher-value purchases
  • Boosting your average order value.

In summary, the implementation of personalized shopping experiences can not only elevate average order value but also nurture customer loyalty and satisfaction, paving the way for long-term success in your ecommerce enterprise.


In summary, increasing average order value is crucial for the growth and success of your ecommerce store. By implementing strategies such as free shipping thresholds, product bundles, upselling and cross-selling techniques, exclusive offers for first-time customers, customer loyalty programs, time-limited promotions, bulk order savings, gamification, and personalized shopping experiences, you can effectively boost your AOV and maximize your store’s profitability. Start implementing these proven strategies today and watch your ecommerce business soar to new heights!

Frequently Asked Questions

How can I increase my AOV product?

Increase your Average Order Value (AOV) by offering free shipping thresholds, product discounts, bundle deals, time-sensitive deals, loyalty programs, and social proof. Cross-sell related products and upsell discounted offers during checkout to further boost AOV.

Why is my AOV low?

A low AOV indicates that your customers are not buying more expensive items and you need to adjust your strategy by offering additional options or better value. This will help you maximize your revenue on each purchase and increase your AOV.

What are the factors that affect AOV?

Industries, devices, seasonalities, item value, and pricing are all important factors that affect Average Order Value. Different industries will have different AOVs due to their unique characteristics.

What does a higher AOV mean?

A higher average order value (AOV) means that customers are spending more money per purchase, driving up revenue without increasing the number of customers or marketing costs. AOV optimization is a key lever to boost business growth, as it indicates customers are buying more expensive products and engaging in cross-selling.

What is Average Order Value (AOV)?

Average Order Value (AOV) is a metric that helps measure the average amount spent per order in an ecommerce store. This helps analyze customer spending habits and gives an indication of overall performance. AOV is an important metric for ecommerce stores, as it can help identify trends in customer spending and provide insights into how to optimize the store for higher sales. It can also be used to compare performance across different.

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