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10 effective ways yo increase average order value in 2022

history March 11, 2022

local_library 8562 minute read

The primary advantage of increasing average order value is that you make more money per transaction. As a result, your store will be more profitable. When a customer shops online, they frequently only buy what they’re looking for. However, by implementing some of the average order value strategies discussed in this article, you’ll be able to present more great products to customers and generate more sales from each order. This article will explain what the average order value is and how to raise it. So, let’s get started.

What exactly is the average order value? 

The average order value (AOV) is the average dollar amount spent by a customer when placing an order on your website. 

Divide your store’s total revenue by the number of orders taken to calculate your average order value. This formula is the simplest way to compute it. Keep in mind that it does not include marketing expenses.

The advantages of increasing average order value 

  • Boost revenue and profit: Revenue and profit will increase as the average order value rises. The more you earn per order, the more money your company makes overall. If you see an increase in average order value, you’ll be able to reinvest more money in your company’s growth while also pocketing more.
  • Cost-effective marketing return: If you spend $20 on marketing and the average order value is only $50, after deducting product costs and taxes, you haven’t earned much. However, as the average order value rises, your marketing spend becomes more profitable. As a result, having an average order value strategy in place is critical. 
  • Sell more inventory: Dropshippers are exempt from this rule. However, if you own inventory for a physical store or an online store, you can sell more of it by following a proper average order value plan. You’ll be able to sell more of the products you carry if you make changes to increase AOV.

10 ways to increase average order value

1. Provide a free shipping boundary 

Offering a free shipping threshold is the simplest way to increase average order value. For example, all orders over $75 qualify for free shipping. 

Add 30% to your average order value once you’ve calculated it. For example, if your average order value is $100, the 30% increase makes it $130. This is the new number you’ll use to determine your free shipping threshold – for example, free shipping on all orders over $130. 

You can also add a notification when a customer checks out and their order does not meet the free shipping threshold. You will be able to help increase average order value by receiving this notification.

2. Provide product discounts 

While it may appear counterintuitive, offering discounts can aid in changing your average order value. When offering discounts, however, make sure to include a minimum spend. For example, if you spend $75 or more, you will receive a $10 discount. 

Some brands offer volume discounts as well. When specific order value brackets result in a specific discount. For example, if you spend $75, you will receive a $10 discount, a $15 discount if you spend $100, and a $25 discount if you spend $150 or more.

3. Offer bundle deals 

Offering customers bundle deals can have an impact on average order value. For example, your promotion could be “buy two, get one free” or “buy three, get one free.” 

Because AliExpress products are reasonably priced, you’ll want to select free gifts that won’t have a significant impact on your product margins. For instance, if you sell women’s clothing, your free gift could be a $2 bracelet. If you offer a buy three, get a fourth free deal, make sure you price your products so that you can cover the costs of the fourth while still profiting from the bundle deal.

product bundles offer with discount

4. Give a gift card

Gift cards are an excellent way to increase average order value, even if only a small one is given away for free. For example, if your retail price is $35 or higher, you can give a customer a free $5 gift card to use with their next purchase. They’ll be more likely to spend again now that they have a gift card. 

However, you must ensure that your product prices are sufficiently high so that your gift card does not result in a free purchase for your customer, as this would result in a profit loss. Also, make sure customers understand they can’t use the gift card toward their current purchase or shipping (if you offer free + shipping on certain products).

Finally, providing gift cards encourages future purchases, which reduces future ad spend. It’s a great incentive to give customers when sales are down for the season. Don’t make this offer available all year because it will lose its effectiveness over time. 

Keep in mind that even if you don’t give away a free $5 gift card, gift cards still help increase average order value because most people don’t spend the entire card or end up paying much more than their card allows. 

Customers can be given a gift card directly from the Shopify admin.

5. Carry out first-time offers 

If your company is less than six months old, the majority of your customers will be first-time visitors. Offering promotions to new visitors can help increase the average order value. You can offer this specific audience a one-time discount when they buy multiples of a popular product, or you can offer exclusive bundle deals to people who have never shopped with you before. 

If a customer orders several items and is pleased with the results, it will be even easier to persuade them to shop with you again. They’ll have already done their shopping on your website. As a result, you have a better chance of converting them into repeat customers.

6. Display cross-sells as well as up-sell items 

A cross-sell is a product that a customer might like that isn’t the same as the product they’re looking at. For example, if your customer is looking at a dress, you could recommend a pair of earrings to go with it. 

Adding the products the model is wearing to the recommended products is a great way to cross-sell. For example, if the product photo is selling a tank top, you could cross-sell a skirt. Because the customer sees the two together, they are more likely to buy them together.

An up-sell occurs when you encourage customers to purchase more expensive items or add-ons in order to increase the average order value or profit. If you sell pillows, for example, you could upsell them with comforter sets, duvets, or other items. 

Selling more of the same product is an effective way to upsell. For example, if you sell essential oils, you would upsell the customer by recommending the same scent as well as a couple of other popular scents. People are more likely to buy more of what they enjoy, especially if it is likely to run out at some point. This is also applicable to cosmetics.

7. Make appropriate recommendations 

This technique, when used as part of cross-selling, can be effective for all types of sellers. Consider Netflix. The company employs an impressive algorithm that recommends suitable content to users based on their viewing history and areas of interest. This is one of the primary reasons Netflix has been able to capture such a large market share. 

Its recommendation engine is one of the most impressive, but it isn’t the only website that employs this technique.

8. Offer time-Sensitive deals 

You can increase average order value by offering a time-sensitive deal. For example, you could offer a 48–hour deal in which someone receives a free gift or a special discount if they order a certain number of products. 

While urgency may not increase average order value for a long time, it does help increase conversions. Time-sensitive promotions are excellent for increasing average order value during slow periods. And they’re relatively simple to put into action. You can publicize them on social media or include a banner notice on your website.

9. Showcase savings on bulk orders 

People like to save money. However, when your customers place large orders, they may feel guilty about it. Through the display of overall savings, you can maintain a high average order value from a customer. This can help to avoid abandoned carts or cart modifications, which can reduce the amount they intended to purchase. 

Customers will feel like they’re getting a good deal if you show them how much money they’re saving per item with each addition. Showing people how much money they can save by purchasing multiple items can help increase average order value, even if it is only a preventative measure.

10. Designing a game or a contest 

To increase average order value, the food industry frequently creates games or contests. McDonald’s, for example, has the Monopoly Game, in which customers are incentivized to order more frequently and upgrade their meals in order to obtain more game pieces. They have a chance to win big prizes by using the game pieces. 

You can also run contests in e-commerce where customers can win prizes for purchasing frequently. You can inform customers that if they make a purchase, they will be entered into a contest to win one of several prize packs. Then, in the Shopify App store, look for the contest app that will work best for your campaign.


Calculating your average order value can help you see how well your store is doing. After calculating your average order value, you can try some of the strategies in this article to increase it. Whether you use bundled deals or a free shipping threshold, you’ll be on your way to increasing order volume on your online store. So, are you ready to see your sales increase? Then it’s time to begin implementing some new changes.

For more tips on improving your store, check out our other articles here on Autoketing

In case you’re looking for trustable applications to your Shopify Store, check for the reference resource Shopify App Store  

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