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How To Increase Average Order Value

Let’s talk about a metric that can supercharge your revenue: Average Order Value (AOV).

What is AOV?

AOV is the average amount a customer spends per order on your store. It’s calculated by dividing your total revenue by the number of orders. 

It can easily be found in your analytics dashboard on Shopify. Go and take a look at AOV for the last 90 days, that should give you a good idea of your average.

"A higher AOV means more revenue from each transaction, boosting your bottom line without needing more traffic."

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Why AOV Matters?

Out of all the things to watch, AOV probably has the biggest impact on your ability to scale.

If people are spending more money with you, you are making more profit per order and therefore can afford to spend more to acquire a customer.

3 ways to improve your AOV and make every order count:

  1. Upsell and Cross-Sell

    Recommend complementary products or upgrades to the product.
    For example, if someone’s buying a phone case, suggest a screen protector or a premium version of the case. Shopify Apps like SellEasy make this really easy to setup.

  2. Offer Bundle Discounts

    Create product bundles that encourage customers to buy more for a slight discount.
    Think “Buy 2, Save 10%” or curated kits like a “Skincare Starter Set.” Display these prominently on product pages and in cart.

  3. Set Free Shipping Thresholds

    Encourage customers to add more to their cart by offering free shipping above a certain order value (e.g., “Free shipping on orders over $100”). Display this clearly in the top banner of your store, the product page and in your cart for best results. Set the threshold slightly above your current AOV to nudge customers to spend more.

TL;DR

  • Install an upsell/cross-sell app to recommend add-ons.
  • Create and promote product bundles on your site.
  • Analyse your AOV and set a strategic free shipping threshold.

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Ecom Money Monday

Leaked: 7-Figure Shopify Tactics & Insights Delivered To Your Inbox Every Monday

  • Practical tips and strategies to grow your sales
  • Meta ads, Google ads, Email Marketing, CRO & more
  • Get access to exclusive subscriber-only resources
Sign up here →