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6 Powerful Ways to Increase Average Order Value on Shopify

As a savvy Shopify Store owner, you know your website is being paid attention to. It is receiving an appropriate amount of traffic and the customers are even making regular purchases. But then, you come to know about a statistic about your business: overall, despite the above-mentioned amazing things, your revenue isn’t thriving. 

What must you do? Increase your Average Order Value. Here in this article, you will learn about Shopify Store Average Order Value (also known as AOV in short) and how it works. You will also come to know about the productive and effective ways that you can follow to increase AOV.

These are the things we will be covering in this blog:

1. Put Forward Tempting Delivery Customisations

2. Offer Free Shipping

3. Provide “package deals” or bundle products (Frequently Bought

4. Mystery Gifts can do wonders for your Shopify Store

5. Set up a Live Chat Option

6. Upsell and cross-sell at the end

What is the Shopify Store Average Order Value?

Average Order Value or AOV refers to the mean or average amount spent by customers on every order that they make on your online eCommerce website, or in this case, your Shopify Store. To view your AOV, all you have to do is simply click on your Shopify overview dashboard. The fact that AOV is one of the most crucial eCommerce metrics there is, can’t be emphasized enough.

Needless to say, CRO and AOV are the two things that high-yielding and productive Shopify Store owners tend to keep an eye on. The following formula can also be applied if you wish to calculate the AOV for your Shopify Store:

Average Order Value (AOV):
Total Revenue/ Total Number of Orders Taken

To know more about AOV and how it exactly works, let’s take a look at the following statistics: 

The terms mean, median and mode might seem like jargon, but they are fairly simple to comprehend.

  • Mean: the average value of all the orders of the customers (also referred to as the “Average Order Value”)
  • Median: the middle or intermediate value of all the orders
  • Mode: the order value (in the graph) that occurs most frequently

According to the above graph, one can see that the “mode” is much lower in value than the “mean”. If you wish to increase the Average Order Value, it is the “mean” here that you need to put all the work on!

Let’s move forward and apprise the six incredible ways you can increase the AOV of your Shopify Store!

1. Put Forward Tempting Delivery Customisations

If you want your customers to feel valued, you should definitely provide them with delivery options specialized just for them. For instance, every customer in this world would like the option of getting to select the desired time and even a specific date for the delivery to be done. It’s true that this option can be costly at times but it definitely proves to be an asset when it comes to increasing the AOV for your Shopify Store.

One simple but effective option for doing this is to download or apply an option known as  “Order Delivery Date”, which is provided by Shopify itself so that the customers can choose their desired or customized delivery time and date.

2. Offer Free Shipping

In addition to a customized order delivery date, there is also the option of “free shipping” which can prove very useful and effective if used in an intelligent way. Most accomplished Shopify store websites set a threshold amount of price that the customer needs to buy the products before they are provided with free shipping service. 

To amplify your free shipping threshold’s success, it is highly recommended to set it just a little higher than your Average Order Value (AOV). This will not only increase the AOV of your Shopify store but will also tempt the customers to add more products to their cart!

3. Provide “package deals” or bundle products (Frequently Bought Together)

One of the crucial steps to increase AOV is to recommend “product bundles” to your customers. This way, it not only increases the possibility of more products being brought together but also adds value to the particular orders that are being made (which is what’s crucial at the end of the day). Don’t forget to make them cost less when bought together, compared to if they were bought individually.

This has many advantages. One, for instance, is that the customers will not have to go through all the hard work of researching the related products, and also, they will get everything they need in one place!

4. Mystery Gifts can do wonders for your Shopify Store

To increase the “customer lifetime value” along with AOV, try setting up a rewards program or a loyalty program. In other words, provide your customers with gifts when they purchase a lot of products or spend a lot of currency on your Shopify store.

Another smart way of doing this is to reward your customers with little points on every purchase and then, once a specific amount of points are collected, they can be rewarded with a coupon prize or a cashback reward!

5. Set up a Live Chat Option

One of the best ways a customer can feel connected and even get their specific questions answered is through live chat! All you need to do is hire agents who can answer these specific product-related queries full-time. This way, little to no products end up ignored or abandoned. Which, in turn, again, helps to increase your Shopify store’s Average Order Value. 

6. Upsell and cross-sell at the end

Similar to “product bundling”, upselling and cross-selling refer to selling the customers the upgraded or updated versions of products. Most commonly, the specific upgraded products are suggested to them while they’re making a purchase or while they’re paying for it. 

Offering low-value upsells can really help increase AOVs. For example, if a customer is willing to pay $100 for a product, then surely they’ll be able to increase it to $120. What this simply means is that you should be able to convince them by suggesting genuinely useful and related products.

Last but not least, make sure you do the proper research on the data of your Shopify Store, as it is the most crucial thing you need to do in order to increase the Average Order Value (AOV) of your amazing Shopify Store!

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