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What is

Average Order Value (AOV)


Your average order value is basically the average amount that your customers spend at your store. It’s pretty simple to figure out, just take your total revenue during a certain time period and divide it by the number of orders you had.

Marketing effectiveness
Marketing effectiveness
Customer Buying Habits
Customer Buying Habits
Identify valued customers
Identify valued customers
Expected Revenue Earnings
Expected Revenue Earnings

For example, your AOV can tell you how effective your latest marketing efforts were based on how much you had to spend to get each order. Your AOV can also give you insights into your customers’ buying habits—especially when calculated for specific customer segments—and help you identify your most valued customers. And paired with your conversion rate, your AOV can be used to project how much revenue you can expect to earn from a certain number of site visit.

Why Average order value matters
Why Focus on

Increasing AOV


Increasing your AOV is one of the most effective and comparatively inexpensive ways to increase revenue and cash flow (a sign of any healthy business). Whereas increasing site traffic usually involves researching and executing complex marketing plans to attract new customers, increasing your AOV could be as simple as installing a plugin for your shopping cart.

Protect Your Business Against Dips

Optimizing for higher AOV can also help you strengthen your business against unforeseen dips in traffic.

Higher Revenue in Any Condition

In fact, you may get less traffic overall but see higher revenues due to increased AOV and more targeted marketing practices

Why Focus on Increasing AOV?

What are Some of the Ways We Increase Your Average Order Value?

What if you could increase your revenue with the conversion rate you have right now? That’s where boosting your average order value comes in. Your average order value is the average amount that customers spend on your site. Increasing your average order value is a lot simpler than increasing your conversion rate because your customers already want to purchase from you.

Product Bundles & Lookbooks
Ecommerce Product Bundling Strategy
Product Bundles & Lookbooks

Product bundling makes buying multiple items at once easy. Bundles often group a primary product and its accessories (such as a guitar, tuner, and instrument case); or products that are used for a similar purpose (such as face cleanser, toner, and moisturizer). 

There are lots of ways to create bundles. In the fashion industry, many online stores offer
a “Shop the Look” option, which enables customers to purchase an entire outfit (often 3 or 4 items) in a single click. Not only is this a great technique for increasing AOV, it also helps personalize the customer shopping experience.

Up-Sell & Cross Sell
How to Sell More - Cross Selling and Upselling
Up-Sell & Cross Sell

Customers browsing your site are usually in shopping mode and ready to buy. This is your opportunity to suggest other products that may interest them—and increase your AOV. Here are two effective marketing strategies you can use: 

  • Up-Sell – Suggest a larger or more expensive version of a product a customer is viewing. For example: If the customer is looking at your 10-watt floodlight, recommend the 20-watt version.
  • Cross-Sell – Suggest additional items related to the one your customer is viewing. For example: If the customer is looking at smartphone covers, recommend compatible chargers or headphones.
Customer Rewards
Drive More Repeat Purchases‎
Customer Rewards

If you want customers to spend more, you need to give them an incentive. Here are a few incentives that can help increase your AOV: 

  • Promotions/Discounts – Offer discounts for spending more money or buying additional items. Or, offer valuable services such as free shipping when customers spend a certain amount.
  • Rewards Points – Rewarding customers with points for spending more money on your site is a great way to increase AOV while at the same time fostering customer loyalty. The more customers buy, the more points they earn. Points can later be redeemed for discounts, free gifts, and other incentives.
Personalization & Recommendations
Online Personalized Recommendation Engines
Personalization & Recommendations

Customers usually respond when presented with product offers that meet their needs. The more relevant the product offers, the more likely they will buy. There are two key methods for helping customers find the products most relevant for them: 

  • Personalization– Offer discounts for spending more money or buying additional items. Or, offer valuable services such as free shipping when customers spend a certain amount.
  • Recommendations –Customers often don’t know exactly what they want or need, and are looking for help selecting products.
Easy Returns
Manage E-commerce Returns Efficiently
Easy Returns

One of the biggest concerns customers have about shopping online is whether or not they can return the items they purchase. 

If a customer thinks that returning something will be costly or difficult, he/she will buy fewer items to minimize their return risk. However, research shows that the more items customers buy, the more they actually keep (meaning they don’t return more items when the process is easy, they just want to know that easy returns are an option).

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