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February 18, 2023

How to Increase Average Order Value (AOV) for Your Shopify Business

5 Proven Strategies to Boost Your Shopify Store's Average Order Value

As a Shopify business owner, you're always looking for ways to increase sales and revenue. One important metric to focus on is average order value (AOV), which refers to the average amount of money a customer spends per order. By increasing your AOV, you can boost your revenue without having to acquire new customers. In this article, we'll explore five strategies you can use to increase your AOV on Shopify.

Offer Free Shipping on Orders Above a Certain Value

One effective way to increase AOV is to offer free shipping on orders above a certain value. This strategy works because it incentivizes customers to spend more in order to qualify for free shipping. According to a study by UPS, 58% of online shoppers add items to their cart in order to qualify for free shipping.

To implement this strategy on your Shopify store, you can set a minimum order value for free shipping in your shipping settings. For example, you might offer free shipping on orders over $50. Make sure to promote the offer prominently on your website, such as with a banner or pop-up.

Here are some tips for promoting free shipping on your Shopify store:

  • Highlight the minimum order value for free shipping on your homepage, product pages, and checkout page.
  • Use urgency tactics, such as a countdown timer, to encourage customers to add more items to their cart in order to qualify for free shipping before time runs out.
  • Consider offering free shipping for a limited time, such as during a holiday promotion or flash sale.

Bundle Related Products Together

Another way to increase AOV is to bundle related products together. Product bundling is a tactic where you group complementary products together and offer them at a discounted price compared to buying them separately. This strategy can increase AOV by encouraging customers to purchase additional items they may not have otherwise considered.

To create effective product bundles, consider the following tips:

  • Choose products that complement each other. For example, if you sell skincare products, you might bundle a cleanser, toner, and moisturizer together.
  • Offer a discount compared to buying the products separately. The discount should be compelling enough to entice customers to purchase the bundle.
  • Promote the bundle on your website and in your marketing materials. Consider creating a separate category for bundles on your website, and feature them prominently on your homepage and product pages.

Here are some examples of successful product bundles on Shopify:

  • Soko Glam's 10-Step Set includes ten Korean skincare products at a discounted price.
  • Drizly's Cocktail Kits bundle all the ingredients needed to make a specific cocktail, such as a margarita or old fashioned.
  • Poo-Pourri's Gift Sets bundle together several of their bathroom odor-prevention sprays.

Offer Upsells and Cross-Sells

Upselling and cross-selling are tactics where you offer customers additional products or services that complement their original purchase. Upselling involves offering a more expensive version of a product, while cross-selling involves offering a related product or service.

These tactics work because customers who have already made a purchase are more likely to make another purchase. According to a study by Forrester Research, product recommendations are responsible for 10-30% of ecommerce revenue.

To implement upsells and cross-sells on your Shopify store, consider the following tips:

  • Offer upsells and cross-sells on the product page and in the shopping cart. For example, if a customer adds a laptop to their cart, you might suggest a more expensive laptop with better specs or a carrying case.
  • Personalize the recommendations based on the customer's browsing and purchase history. Shopify offers apps such as LimeSpot and Recomatic that can automate this process.
  • Test different offers and placements to see what works best for your store.

Here are some examples of successful upsells and cross-sells on Shopify:

  • Harry's offers a Shave Set that includes a razor handle, blades, and shave gel. On the product page, they offer an upsell to a larger set that includes additional products such as a face wash and aftershave.
  • ThreadBeast offers a monthly clothing subscription service. After a customer signs up, they are prompted with an upsell to add additional items to their box.
  • Bose offers a cross-sell on the product page of their QuietComfort 35 headphones, suggesting a wireless Bluetooth adapter that allows the headphones to be used with a TV or home stereo system.

Implement a Loyalty Program

A loyalty program is a strategy where you reward customers for repeat purchases or other actions, such as referring a friend or writing a product review. This strategy works because it incentivizes customers to continue purchasing from your store in order to earn rewards.

To create an effective loyalty program, consider the following tips:

  • Choose rewards that are valuable and relevant to your customers. For example, if you sell coffee, you might offer a free bag of coffee after a customer makes five purchases.
  • Make the rewards achievable. Customers should feel like they can earn the rewards without too much effort or expense.
  • Promote the loyalty program on your website and in your marketing materials. Consider creating a separate page on your website that explains the program and its benefits.

Here are some examples of successful loyalty programs on Shopify:

  • Tarte offers a rewards program where customers can earn points for purchases, referring friends, and writing reviews. Points can be redeemed for discounts and free products.
  • Rothy's offers a referral program where customers can earn $20 off their next purchase for every friend they refer who makes a purchase. The referred friend also receives $20 off their first purchase.
  • The Honest Company offers a subscription program where customers can receive a discount on every order and have the option to customize their shipments.

Provide Financing Options

Another way to increase AOV is to offer financing options. This strategy works by allowing customers to spread out the cost of a purchase over time, making larger purchases more affordable and appealing.

To implement financing options on your Shopify store, consider the following tips:

  • Partner with a financing company, such as Affirm or Klarna, that integrates with Shopify.
  • Promote the financing options on your website and in your marketing materials. Consider offering a financing calculator on product pages to show customers how much they would pay per month.
  • Consider offering special financing promotions, such as 0% interest for a limited time.

Here are some examples of successful financing options on Shopify:

  • Leesa offers financing options through Affirm on their website. Customers can choose to pay over 12, 18, or 24 months with interest rates as low as 0%.
  • The Sill offers financing through Klarna on their website. Customers can choose to pay over 6, 12, or 24 months with interest rates as low as 0%.

Conclusion

Increasing AOV is a key strategy for boosting revenue and growing your Shopify business. By offering free shipping on orders above a certain value, bundling related products together, offering upsells and cross-sells, implementing a loyalty program, and providing financing options, you can encourage customers to spend more on each order. Remember to track your results and continually test and optimize your strategies to see the best results for your store.

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