The business of eCommerce has been trending up since the start of 2020 and many business owners are looking for ways to take advantage of the additional buyers surfing the internet for products and services. Average order value (AOV) is a helpful data point that lets you know how much the average buyer is spending during a single transaction on your website. It also serves as a great number to try and increase as it indicates an uptick in sales across the board for your business.
So how can you increase the AOV for your eCommerce store? We’ve put together a list of three ways you can start! Read on to learn more!
Upsell at Checkout
We have all seen this before when making online purchases, you begin the check out process and are greeted with a pop-up asking you if you’d like the skirt that goes along with the shirt you are about to buy, or if you’d like to purchase a gift card for a friend.
This happens because simply put – it works! Oftentimes buyers can get tunnel vision if they are looking to shop your website for a particular item. Say you are an artist, and someone noticed one of your prints in a local coffee shop. They hurry to your website and add the item to the cart, but at checkout, your upsell automation lets them know you also offer shirts with the same print. Now you’ve increased your average purchase for this customer! The more customers you can successfully upsell to at checkout, the higher your AOV will rise over time!
Establish a Minimum Order for Free Shipping
According to recent findings by UPS, over 43% of online customers research shipping costs and seek out stores offering free shipping before making a purchase. There is no doubt that offering free shipping as an incentive is immensely powerful. Why not leverage this to increase sales by raising the minimum order needed to receive free shipping? Consider analyzing your AOV and then raise your minimum order required to be eligible to free shipping!
There is a psychological element at play when customers seek out free shipping. Research has found that one of the top reasons online customers abandon their carts is because of “unexpected charges.” Commonly, a customer will add items to their online cart with their budget in mind and then when they check out are forced to rethink their order to accommodate for shipping costs and taxes. So not only will offering free shipping at a certain amount spent increase your sales, but it may lower your abandoned cart averages as well!
You likely have products on your website that go together like peas in a pod – but your customers are probably not even aware that they are an option! Another form of upselling that is commonly seen around the holidays is creating packages. If your product line includes winterwear such as coats, consider offering a special promotion where customers can purchase gloves and hats at a discounted bundle price.
Your likelihood of increasing your average order value will go up, while simultaneously raising awareness about other items available for purchase to website visitors. This combined with other strategies such as the “free shipping with $100 purchase” methodology mentioned previously will have you selling more in no time!