The Granify E-Commerce Blog

5 Methods To Increase Average Order Value (AOV)


As an eCommerce professional, you’re always looking for ways to drive sales, increase customer retention, and optimize your website for conversions. But are you working to increase your average order value?

Many marketers (rightly) focus on the challenge of capturing the attention of consumers and driving them to the website. But what about once they are there, have agreed with the value shown, and are committed to some kind of purchase? Because these customers are already engaged with what you do, it's now the purpose of the eCommerce site to maximize exposure to the right products at the right time to maximize that consumer's buying potential.

For larger online stores, increasing your average order value (AOV) by pennies can have serious positive financial impact on the business, especially if you are able to continue to apply those practices incrementally over time.

So, what ways can you use personalization to increase AOV? We've got six time-tested, proven methods that can help crack that problem.

1. Add-on Deals

One of the simplest ways to increase average order value is to create add-on deals. A popular way for these deals to work is when someone has spent a certain amount already.

Amazon has mastered this tactic, and has a whole category of inexpensive products that are called “Add-on Items.” These items don’t ship for free unless someone spends a substantial amount of money, one that would cover the shipping costs.

 add-on deals

The customer experience is positive, as the user is happy that they get to add on bobby pins with no additional shipping costs. Amazon is able to bundle their orders together, and increase their average order value.

2. Free Shipping Thresholds

On Ann Taylor’s homepage, we can see that shipping is free when a customer spends $125 or more. Otherwise, there’s a flat rate of $8.95, no matter what they buy.

Shoppers understand immediately that if they reach the $175 threshold, they’ll get free shipping. Additionally, the threshold encourages customers to spend more.

 Screen Shot 2017-05-19 at 1.18.04 PM.png

Ann Taylor has set the bar in accordance with their premium product -- a couple items should get you there. Others, like Toys “R” Us, have a lower free shipping threshhold of $29. By adding a free shipment baseline, the retailer can substantially increase their average order value.

3. Gift Wrapping Services

Customers aren’t just looking for products for themselves. They often shop for friends and family. Pottery Barn offers gift wrapping services for $6.00 per package, which helps customers easily prepare wedding, birthday, and anniversary gifts.

 Gift wrapping services

Gift wrapping services delight customers. From their perspective, they get their gifts wrapped conveniently for a small price. The retailer, in exchange, enjoys a higher order value, making money off the purchase of the services.

Gift wrapping is an incredibly easy service to add to your offerings. It doesn’t require you to stock new products, and it’s inexpensive to do.

For a store like Pottery Barn, with tons of gift items and gift registries, it’s a service I’m sure their customers appreciate.

4. Bundled Deals

If customers buy more than one product, do they get a deal? If customer see they can get a bargain if they purchase more items, they’ll be tempted to splurge.

The Art of Shaving uses starter kits to boost average order value while saving the customer on the individual price of the items involved. Additionally, for the customer who values his or her time, being able to purchase a collection of complementary products without visiting multiple stores or waiting on multiple shipping dates is an affordable luxury.   bundled_deal.png

5. Relevant and Related Products

It’s one thing to showcase other products you sell, but it’s another to share which products are frequently bought at the same time. For example, if a customer buys a lamp, they’re going to need the right light bulbs. If they buy a new pair of glasses, they might want a lens cleaning kit.

Appearing again as a leader in this space, Amazon has mastered the art of featuring relevant and related products. Amazon shows the product you’re looking at paired with another product that might be a good fit.

Relevant and Related Products

A customer can also see the total price of getting these things together, which helps to show the deal. If the items are small, it’s inexpensive to buy items at the same time, and the customer will be tempted to add something extra into their shopping cart.

Ultimately, showing items bought together is good for customers, as they often need the items you show. But it’s good for you, as well, because you’ll increase how much they spend on a particular order.

Want To Increase Your AOV?

There are many things you can do to increase average order value, but the strategies that will work for you depend on what you sell. What works for an outdoor gear company might not work for a company that sells pool supplies. The key is to test out strategies-- it might take a few tests before you figure out what really works.

No matter what, you want to provide a seamless, intuitive customer experience that makes users feel comfortable and happy when they visit your site. Your suggestions for further purchases need to be genuinely helpful, focusing on what the user wants and needs, rather than what you want them to buy. If you focus on helping customers, then you’re more likely to keep them around, and sell more when they stop by your site. When users feel helped by an ecommerce site, there’s no hesitation to buy more, ultimately helping you increase your average order value.

If you'd like to know more about how Granify helps customers increase AOV with a suite of user-focused tacticts like these, we'd be happy to provide a one-on-one consultation and dig in to your current eCommerce strategies and how you might be able to see growth in your own AOV.

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