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Your average order value (AOV) is more than just a number; it’s a crucial indicator of customer satisfaction, purchasing behavior, and overall business performance. And it’s essential for maximizing revenue.
Let’s dive into how to increase your AOV. By fine-tuning your approach — through personalized experiences, strategic upselling, and smarter incentives — you can encourage customers to buy more on each visit, ultimately raising your profitability.
How to calculate average order value
AOV is a key ecommerce metric that measures the average amount customers spend per order.
To measure the average order value, divide your total revenue by the number of orders placed within a given timeframe.
Let's say your ecommerce store generated $20,000 in revenue from 400 orders last month. Your average order value for that month would be $50.
Why AOV matters in ecommerce
Why is AOV important for ecommerce brands?
For one, it provides a great way to increase revenue without additional marketing strategies or budget.
It provides metrics that help ecommerce business owners:
- Understand customer behavior
- Nurture existing customers
- Increase customer lifetime value
AOV can also help cut costs for businesses for each customer transaction. By generating a higher AOV, merchants can lower transaction fees, optimize customer acquisition costs (CAC), and reduce shipping overhead.
Why your AOV may be declining
If your AOV is low or falling, it may signal that your customer journey lacks personalization or that your offers aren't resonating. Common culprits include:
- Outdated or irrelevant product recommendations
- Ineffective upsell and cross-sell strategies
- Missed opportunities to incentivize larger purchases
Review your purchase data and customer feedback to pinpoint areas to adjust.
Best ways to increase average order value
Enhancing your upsell strategy, personalizing product recommendations, and testing new offers can motivate customers to add extra items or upgrade to higher-value products at checkout.
The tactics below offer proven ways to boost average order value and maximize profitability.
1. Offer quantity-based discount pricing to encourage larger orders
You see this pricing strategy in grocery stores all the time, and the strategy works for ecommerce stores, too.
Quantity-based pricing models like “three for $50” or “buy one get one free” are easy for customers to understand. This type of discounting is particularly effective when implementing pop-ups or cart messaging. Plus, quantity-based discount pricing can come to the rescue if you have a surplus of products you need to unload fast. Use this method for non-perishable products that consumers will eventually need to replenish such as paper towels, toothpaste, or razors.
Goli Nutrition did this in their holiday sale promotion. The nutrition company made it clear customers were getting a deal by crossing out the standard price of $95 for five gummy bottles and displaying the new total of $76. They also broke down the total price per bottle to show the savings.
2. Leverage free shipping thresholds to motivate additional purchases
Offering free shipping will help increase the average dollar amount spent. In fact, 93% of consumers will buy more items just to qualify for it.
Not only does it eliminate a potential barrier to purchase, it's now a consumer expectation: 66% of shoppers expect free shipping on all orders, regardless of how much they spend.
Tip: Set your free shipping threshold just above your average customer purchase. For example, 30% above. Most customers will naturally be close to this amount, making it easier to encourage them to increase their cart value.
Once you determine your free shipping minimum order, clearly communicate it to motivate the customer, as clothing store Vuori does here.
Instead of a price threshold, it might make more sense for your brand to offer quantity-based free shipping. For instance, offer free shipping when customers purchase a set number of products, as seen below.
3. Implement product bundles to enhance perceived value
Offer complementary products as a package deal at a discounted price. This not only provides value to customers but also encourages them to purchase more items. For example, a skincare brand might bundle a cleanser, toner, and moisturizer at a reduced rate for the collection of products, simplifying the shopping experience and increasing the perceived value.
Product bundling also serves as a great way to introduce new or unknown products. Simply bundle a less popular product with a high-demand one to pique customer interest.
To drive higher order values, let customers know the benefits of buying a collection of products, beyond just the savings aspect. Take Tom Brady’s brand, TB12, as an example. In this case, the ad copy explains how the products in the bundle combine for overall well-being.
4. Include bulk order options to drive higher average orders
Another way to increase AOV is bulk orders. Brick-and-mortar giants like Sam’s Club and Costco enable customers to stock up on the products they know they will need. Merchants should use this strategy to boost order frequency as customers are already familiar with it and look for these kinds of offers.
For instance, online CBD store PureKana highlights that buying their vegan gummies in bulk will save customers $30.
5. Upsell and cross-sell to capitalize on customer intent
Tried and true, upsells and cross-sells are a go-to strategy to increase AOV. Many businesses will offer a complementary product or a high-end item. But you can take it further.
Leverage social proof or highlight trending products to reinforce your upsell and cross-sell offers. For instance, statements like, “Over 100 people added this to their cart in the last hour,” can create validation and increase the chances of an impulse buy.
Also, remember that upselling doesn't stop once the initial purchase is complete.
Adding one-click upsell and cross-sell offers to your thank you page can significantly boost additional sales, capitalizing on the customer’s heightened buying intent. Plus, it’s frictionless. Customers don’t have to re-enter their credit card or shipping details, making it easy for them to act on impulse.
Dresswear brand &Collar illustrates this perfectly on their thank you page.
6. Create limited-time offers to spark urgency and increase sales
Limited-time offers create urgency. Psychology Today highlights that the fear of missing out drives customers to purchase — even if they don't immediately need the product.
McDonald's McRib or Taco Bell’s Nacho Fries are perfect examples of this. Because these products aren't available year-round, they drive foot traffic and increase sales.
You can test limited-time offers in a few different ways.
One approach is providing discounts when customers reach a specific purchase threshold, prompting shoppers to add additional items to qualify.
Alternatively, you might introduce an exclusive subscriber-only product, creating a VIP experience while gathering valuable reviews before releasing it broadly.
While limited-time offers aren't designed to permanently raise average order value, strategically deploying them during slow seasons can effectively boost sales exactly when you need them.
7. Develop a loyalty program to incentivize repeat purchases
You don’t want to train your customers to only buy from you when you’re running a sale. Loyalty programs are a good way to incentivize shoppers without devaluing your brand.
These programs reward customers based on their spending, encouraging larger purchases and increasing your average order value. If they're just shy of a milestone, they'll be more motivated to add another item or two to their cart.
Consider offering:
- Points
- Discounts
- Exclusive perks for reaching spending milestones
Not only do loyalty programs boost customer retention, but they also transform satisfied shoppers into brand ambassadors — often at lower marketing costs than acquiring new customers. A successful loyalty program creates an emotional connection, helping customers feel valued, appreciated, and personally connected to your brand.
Tip: Keep it simple. Customers won't stick around if signing up or redeeming rewards feels like work. The easier and quicker it is for customers to see and enjoy their benefits, the more successful your program will be.
8. Enhance personalized recommendations to increase relevance and sales
Personalized recommendations are one of the effective ways to improve your average order value. When customers feel understood, they're more likely to explore and add suggested items to their carts, as Amazon does here.
A well-executed personalization strategy doesn't just improve conversion rates, it also strengthens customer loyalty by creating a more satisfying and relevant shopping experience.
To create tailored product suggestions, leverage AI-driven tools and customer data. Look at:
- Browsing patterns
- Order history
- Personal preferences
9. Highlight savings to visually encourage customers to buy more
Customers love knowing they're getting a great deal. Make it obvious by prominently displaying savings directly on your product pages, especially when they involve:
- Bundles
- Bulk purchases
- Threshold-based discounts
Showing customers exactly how much they'll save by adding more items to their cart creates a compelling visual incentive. For example, phrases like, "Save 20% when you buy two or more," or "Bundle these products to save $15!" can help you increase basket size.
By reinforcing these savings throughout the checkout process — via pop-ups, cart pages, or checkout messages — you continuously remind customers of the extra value they'll receive by increasing their order size, ultimately boosting your average order value.
The bottom line on increasing your AOV (and conversion rate)
From strategic upselling to loyalty programs, each strategy covered in this article provides an actionable path to encourage customers to spend more.
But to fully capitalize on these tactics, your checkout experience needs to be frictionless. That’s where Checkout by Sticky.io shines. With…
- Upsell, cross-sell, and downsell capabilities
- Lightning-fast load times
- A user-friendly drag-and-drop builder
- Unlimited sales funnels
- And seamless integration with Shopify
…Checkout streamlines the buying experience and makes it easier than ever to put your AOV growth strategies into action.
Ready to maximize your AOV with a better checkout experience? Let’s talk about how Checkout can help you scale your business.
