20 Ways to Increase Average Order Value

Success isn’t just about attracting more customers—it’s about maximizing the value of each sale. As an experienced digital marketing consultant who’s helped numerous online businesses skyrocket their profits, I can tell you that increasing your Average Order Value (AOV) is one of the most effective ways to boost your bottom line. Today, I’m going to share 20 proven strategies that will not only increase your AOV but also propel your online business to new heights.

Understanding Average Order Value (AOV)

Before we dive into the strategies, let’s clarify what AOV is and why it matters. Average Order Value is the average amount spent each time a customer places an order on your website or store. You calculate it by dividing your total revenue by the number of orders.

AOV = Total Revenue / Number of Orders

For instance, if your total revenue last month was $50,000 and you received 1,000 orders, your AOV would be $50.

Why is this metric so crucial? Because increasing your AOV allows you to make more money from the same number of customers, effectively boosting your revenue without the need to attract more traffic or improve your conversion rate.

Now, let’s explore the 20 ways you can increase your AOV and grow your online business.

1. Implement Strategic Product Bundling

Product bundling is a powerhouse strategy that can significantly boost your AOV while providing excellent value to your customers. By grouping complementary products together and offering them at a slight discount, you create an irresistible deal that encourages customers to spend more.

For example, if you're selling skincare products, instead of just offering a facial cleanser, create a "Complete Skincare Routine" bundle that includes a cleanser, toner, moisturizer, and sunscreen. Price it slightly lower than the cost of buying each item separately, and you've got a compelling offer that increases your AOV.

To make your bundles even more effective:

Use scarcity tactics: “Limited edition bundles available for the next 48 hours!”
Highlight the savings: “Save 15% compared to buying individually!”
Create themed bundles: “Summer Glow Kit” or “Winter Skin Rescue Pack”

Remember, the key is to ensure that the bundled products genuinely complement each other and provide real value to the customer.

2. Offer Free Shipping Thresholds

Free shipping is a powerful motivator for online shoppers. In fact, studies show that 9 out of 10 consumers say free shipping is the top incentive to shop online more. But instead of offering free shipping on all orders, set a threshold that’s slightly above your current AOV.

For instance, if your current AOV is $75, offer free shipping on orders over $100. This creates an incentive for customers to add more items to their cart to reach the free shipping threshold.

To make this strategy even more effective:

Display a progress bar showing how close customers are to free shipping
Suggest items that could help them reach the threshold
Send cart abandonment emails reminding customers how close they were to free shipping

By implementing this strategy, not only will you increase your AOV, but you’ll also offset the cost of shipping with the additional items purchased.

3. Leverage Cross-Selling Techniques

Cross-selling is the art of suggesting related or complementary products to what the customer is already buying. It’s like the digital version of “Would you like fries with that?” When done right, cross-selling can significantly boost your AOV while enhancing the customer’s shopping experience.

Here are some effective cross-selling techniques:

“Frequently Bought Together” sections: Show items that complement the product being viewed
“Complete the Look” suggestions: Great for fashion and home decor sites
Post-purchase recommendations: Offer complementary items after the initial purchase

For example, if a customer is buying a laptop, suggest a laptop bag, a wireless mouse, or an extended warranty. The key is to make relevant suggestions that add value to the customer's purchase.

To maximize the effectiveness of your cross-selling:

Use AI and machine learning to personalize recommendations based on browsing history and past purchases
Offer bundle discounts for purchasing complementary items together
Highlight the benefits of the additional products in relation to the main purchase

Remember, the goal is to enhance the customer’s experience, not to push unnecessary items. Always ensure your cross-selling suggestions are genuinely useful and relevant.

4. Master the Art of Upselling

Upselling is the practice of encouraging customers to purchase a higher-end product or add premium features to their current selection. When done skillfully, upselling can significantly increase your AOV while providing customers with better-quality products or enhanced experiences.

Here’s how to master the art of upselling:

Highlight the benefits: Clearly explain why the upgraded version is worth the extra cost
Use comparison charts: Show feature differences between basic and premium options
Offer a “Good, Better, Best” selection: This pricing strategy gives customers options while nudging them towards higher-priced items

For instance, if you're selling software subscriptions, you might offer a basic plan, a pro plan, and an enterprise plan. By showcasing the additional features and benefits of the higher-tier plans, you can encourage customers to opt for more expensive options.

To make your upselling more effective:

Use social proof: Show testimonials from customers who upgraded and loved it
Offer a free trial of premium features: Let customers experience the benefits firsthand
Use scarcity tactics: “Upgrade now and get 3 months of premium features for free!”

Remember, successful upselling should always focus on the added value for the customer, not just the higher price point for you.

5. Implement a Customer Loyalty Program

A well-designed loyalty program can be a game-changer for your AOV. By rewarding customers for their purchases, you encourage them to spend more and shop more frequently. Plus, loyalty programs provide valuable data about your customers’ shopping habits, allowing you to tailor your offerings and marketing strategies.

Here are some ideas for an effective loyalty program:

Point-based system: Customers earn points for every dollar spent, which they can redeem for discounts or free products
Tiered rewards: Offer increasing benefits as customers reach higher spending levels
Exclusive access: Give loyal customers early access to new products or special sales

For example, Sephora's Beauty Insider program offers points for purchases, exclusive gifts, and access to special events, encouraging customers to consolidate their beauty shopping with the retailer.

To maximize the impact of your loyalty program:

Make it easy to understand and use
Offer a mix of short-term and long-term rewards
Use gamification elements to make it fun and engaging
Personalize rewards based on customer preferences and purchase history

A strong loyalty program not only increases AOV but also improves customer retention, creating a win-win situation for both you and your customers.

6. Create Irresistible Volume Discounts

Volume discounts are a classic strategy to encourage larger purchases, thereby increasing your AOV. By offering a lower price per unit when customers buy in larger quantities, you incentivize them to stock up or buy for friends and family.

Here’s how to implement effective volume discounts:

Tiered pricing: Offer increasingly better discounts as the quantity increases
Bundle deals: “Buy 3, get 1 free” or “Buy 2, get 50% off the third”
Bulk purchase options: Allow customers to buy in larger quantities at a discounted rate

For example, if you’re selling skincare products, you might offer:

1 item: Full price
2 items: 10% off
3 items: 15% off
4 or more items: 20% off

To make your volume discounts more appealing:

Highlight the savings: “Save 20% when you buy 4 or more!”
Use urgency: “Limited time offer: Buy in bulk and save!”
Show the value: Display the original price alongside the discounted price

Remember to ensure that your volume discounts still allow for a healthy profit margin. The goal is to increase overall revenue, not just sales volume.

7. Leverage the Power of Limited-Time Offers

Creating a sense of urgency can be a powerful motivator for customers to make larger purchases. Limited-time offers tap into the fear of missing out (FOMO), encouraging customers to act quickly and potentially spend more than they initially planned.

Here are some effective limited-time offer strategies:

Flash sales: Short-duration sales with significant discounts
Countdown timers: Display a ticking clock for special deals
Seasonal promotions: Offer special bundles or discounts tied to holidays or seasons

For instance, you could run a "48-Hour Super Sale" where customers get an extra 10% off when they spend over a certain amount. This not only creates urgency but also encourages a higher AOV.

To maximize the effectiveness of your limited-time offers:

Use eye-catching graphics and prominent placement on your site
Send email reminders as the offer nears its end
Create scarcity by limiting the number of deals available

Remember, while limited-time offers can be highly effective, use them sparingly. Overuse can lead to customer fatigue and diminish their impact.

8. Personalize Product Recommendations

In the age of big data and AI, personalized product recommendations have become a crucial tool for increasing AOV. By analyzing a customer’s browsing history, past purchases, and similar customer profiles, you can suggest products that are more likely to appeal to them.

Here’s how to implement effective personalized recommendations:

Use AI-powered recommendation engines
Analyze purchase history to suggest complementary products
Implement collaborative filtering (“Customers who bought this also bought…”)
Use behavior-based recommendations (based on browsing history)

For example, Amazon's "Recommended for You" section is a prime example of effective personalized recommendations, often leading customers to discover and purchase items they hadn't initially considered.

To enhance your personalization efforts:

Collect data through quizzes or surveys to better understand customer preferences
Use dynamic content in emails to showcase personalized product recommendations
Implement personalized homepage experiences based on user behavior

Remember, the key to successful personalization is relevance. The more accurately you can predict what a customer might want or need, the more likely you are to increase your AOV.

9. Implement Minimum Order Values

Setting a minimum order value is a straightforward way to increase your AOV. By requiring customers to spend a certain amount to complete their purchase, you encourage them to add more items to their cart.

Here’s how to effectively implement minimum order values:

Set the threshold slightly above your current AOV
Clearly communicate the minimum order value throughout the shopping experience
Suggest items to help customers reach the threshold

For instance, if your current AOV is $40, you might set a minimum order value of $50. When a customer's cart is at $45, you could display a message like "You're only $5 away from completing your order! Add one of these items to reach the minimum order value."

To make this strategy more customer-friendly:

Offer free shipping or a small discount for orders that meet the minimum
Provide a progress bar showing how close customers are to the minimum
Ensure your minimum order value is reasonable and in line with your product prices

Remember, the goal is to encourage slightly larger purchases, not to frustrate customers with an unreasonably high threshold.

10. Offer Flexible Payment Options

In today’s diverse financial landscape, offering a variety of payment options can significantly impact your AOV. By providing flexibility in how customers can pay, you remove barriers to larger purchases and cater to different financial situations.

Consider implementing these payment options:

Buy Now, Pay Later services (like Affirm, Klarna, or Afterpay)
Installment plans for higher-priced items
Multiple credit card options
Digital wallets (PayPal, Apple Pay, Google Pay)
Cryptocurrency for tech-savvy customers

For example, offering a "4 interest-free payments" option on a $200 purchase can make it more accessible for customers who might hesitate to spend that amount in one go.

To maximize the effectiveness of flexible payment options:

Clearly display all available payment methods throughout the shopping journey
Educate customers on how each payment option works
Highlight the benefits of each payment method (e.g., “Spread the cost over 4 months!”)

Remember, while offering flexible payments can increase AOV, ensure you understand the fees and risks associated with each payment method to protect your business’s financial health.

11. Create a Robust Product Comparison Tool

A well-designed product comparison tool can be a game-changer for increasing AOV, especially for businesses selling technical or feature-rich products. By allowing customers to easily compare different models or versions side-by-side, you empower them to make informed decisions and often opt for higher-value items.

Here’s how to create an effective product comparison tool:

Include key features and specifications
Highlight unique selling points of each product
Use visual elements like icons or color-coding for easy scanning
Allow customers to select which products to compare

For example, if you’re selling cameras, your comparison tool might include specs like megapixels, zoom capability, video quality, and special features. This allows customers to see the value in upgrading to a more advanced model.

To enhance your product comparison tool:

Include customer ratings and reviews in the comparison
Add a “recommended” tag to guide customers towards higher-value options
Allow filtering and sorting within the comparison to focus on specific features

Remember, the goal is to help customers understand the value proposition of each product, making it easier for them to justify spending more on a higher-end option.

12. Implement Tiered Pricing Strategies

Tiered pricing is a powerful strategy that can significantly boost your AOV by offering better value for larger purchases. This approach is particularly effective for businesses selling products that customers might buy in varying quantities.

Here’s how to implement effective tiered pricing:

Create clear, easy-to-understand tiers
Offer increasing discounts or benefits for higher tiers
Clearly display the savings at each tier

For example, a skincare brand might offer:

1-2 items: Full price
3-5 items: 10% off
6-9 items: 15% off
10+ items: 20% off + free shipping

To maximize the impact of tiered pricing:

Use visual elements to make the tiers easy to understand at a glance
Highlight the best value tier to nudge customers towards larger purchases
Consider offering exclusive products or perks for the highest tier

Remember, the key is to make the higher tiers attractive enough to encourage customers to spend more, while still maintaining a healthy profit margin for your business.

13. Showcase Your Best-Selling and Premium Products

Highlighting your best-selling and premium products can be an effective way to increase your AOV. These items often have higher price points and can attract customers looking for quality or popular choices.

Here’s how to effectively showcase these products:

Create a “Best Sellers” or “Staff Picks” section on your homepage
Use high-quality images and compelling product descriptions
Include customer reviews and ratings to build trust
Implement a “Featured Product” carousel

For example, Apple often highlights its latest iPhone models prominently on its website, showcasing the premium features that justify the higher price point.

To enhance this strategy:

Use social proof by showing how many people have purchased the item
Create urgency with limited-time offers on premium products
Use persuasive copywriting to emphasize the value of premium options

Remember, while showcasing premium products can increase AOV, it’s important to maintain a balance and cater to different customer segments and price points.

14. Offer Value-Added Services

Providing value-added services is an excellent way to increase your AOV while enhancing the customer experience. These services can make your products more attractive and justify a higher overall purchase price.

Consider offering services such as:

Extended warranties or protection plans
Professional installation or setup
Customization or personalization options
Priority shipping or white-glove delivery
Expert consultation or training sessions

For instance, if you sell electronics, offering an extended warranty or tech support package can significantly increase the order value while providing peace of mind to the customer.

To make your value-added services more appealing:

Clearly communicate the benefits of each service
Offer bundle discounts for multiple services
Use pop-ups or sidebar notifications to suggest relevant services during the shopping process

Remember, the key is to offer services that genuinely add value to the customer’s purchase, not just to inflate the price.

15. Implement Post-Purchase Upsells

Don’t let the opportunity to increase AOV end at checkout. Post-purchase upsells can be a highly effective way to boost order values after the initial sale is complete.

Here’s how to implement post-purchase upsells:

Offer complementary products immediately after checkout
Send follow-up emails with personalized recommendations
Provide special discounts on related items for a limited time after purchase

For example, if a customer buys a laptop, you might offer a discounted laptop bag or software package on the order confirmation page.

To maximize the effectiveness of post-purchase upsells:

Make offers highly relevant to the original purchase
Use urgency tactics like time-limited offers
Keep the process simple – one-click add-ons work best
Test different types of offers to see what resonates with your audience

Remember, post-purchase upsells should enhance the customer’s original purchase, not feel like a hard sell. The goal is to provide additional value while increasing your AOV.

16. Create Exclusive VIP or Membership Programs

Exclusive programs can be a powerful tool for increasing AOV by encouraging customer loyalty and higher spending. By offering special perks to members, you create an incentive for customers to consolidate their shopping with your brand and potentially opt for higher-value purchases.

Here’s how to create an effective VIP or membership program:

Offer exclusive discounts or early access to sales
Provide free shipping or expedited shipping options
Give members access to limited-edition products
Offer personalized shopping experiences or concierge services

For example, Amazon Prime is a prime example (pun intended) of a successful membership program that encourages higher spending through benefits like free shipping and exclusive deals.

To enhance your VIP program:

Create tiered membership levels to encourage higher spending
Offer points or rewards that can be redeemed for products or discounts
Provide exclusive content or events for members
Use personalized communication to make members feel valued

Remember, the key to a successful VIP program is making the benefits outweigh the cost of membership in the customer’s mind.

17. Leverage Social Proof to Build Trust

Social proof is a powerful psychological principle that can significantly impact purchasing decisions and, consequently, your AOV. By showcasing how others have benefited from your products, you can build trust and encourage customers to make larger purchases.

Here are some effective ways to use social proof:

Display customer reviews and ratings prominently
Showcase user-generated content, such as photos or videos of customers using your products
Highlight testimonials from satisfied customers
Use trust badges and certifications
Display real-time notifications of recent purchases

For instance, if you’re selling skincare products, showing before-and-after photos from real customers can be incredibly persuasive in encouraging larger purchases or bundle deals.

To maximize the impact of social proof:

Encourage customers to leave detailed reviews, not just star ratings
Respond to reviews (both positive and negative) to show engagement
Use influencer partnerships to reach wider audiences
Highlight reviews that specifically mention the value or benefits of higher-priced items

Remember, authenticity is key when it comes to social proof. Never use fake reviews or testimonials, as this can severely damage trust if discovered.

18. Create Irresistible Package Deals

Package deals are a fantastic way to increase your AOV by offering customers a curated selection of products at a slight discount. This strategy not only boosts your average order value but also introduces customers to a wider range of your products.

Here’s how to create effective package deals:

Combine complementary products that make sense together
Offer a slight discount compared to buying items separately
Create themed packages (e.g., “Summer Essentials Kit” or “Home Office Setup”)
Limit the availability of certain packages to create urgency

For example, if you sell beauty products, you might create a "Complete Skincare Routine" package that includes a cleanser, toner, serum, and moisturizer at a 10% discount compared to buying each item individually.

To enhance your package deals:

Use attractive visuals to showcase the package contents
Highlight the savings or value proposition clearly
Allow some customization within packages to cater to individual preferences
Rotate packages seasonally or based on trends to keep offerings fresh

Remember, the goal is to provide value to the customer while encouraging them to purchase more items than they might have originally planned.

19. Implement a Rewards Credit Card Program

Partnering with a financial institution to offer a co-branded credit card can be a powerful way to increase customer loyalty and boost AOV. By offering rewards for purchases made with your brand, you incentivize customers to consolidate their spending with you.

Here’s how to create an effective rewards credit card program:

Offer points or cashback for purchases made with your brand
Provide sign-up bonuses or welcome offers to encourage adoption
Give cardholders exclusive discounts or early access to sales
Offer special financing options for larger purchases

For instance, the Amazon Rewards Visa Card offers 3% back on Amazon.com purchases, encouraging cardholders to shop more frequently and potentially make larger purchases.

To maximize the effectiveness of your credit card program:

Make redemption easy and valuable (e.g., points can be used directly for purchases)
Offer tiered rewards for higher spending levels
Provide additional perks like extended warranties on purchases or purchase protection
Use targeted marketing to promote the card to your best customers

Remember, while a co-branded credit card can be a powerful tool, it’s important to partner with a reputable financial institution and ensure compliance with all relevant regulations.

20. Harness the Power of AI-Powered Recommendations

Artificial Intelligence (AI) has revolutionized the way e-commerce businesses can personalize the shopping experience and increase AOV. By leveraging machine learning algorithms, you can provide highly relevant product recommendations based on a customer’s browsing history, past purchases, and similar customer profiles.

Here’s how to effectively use AI-powered recommendations:

Implement a “Recommended for You” section on your homepage and product pages
Use collaborative filtering to suggest items based on what similar customers have purchased
Employ content-based filtering to recommend products similar to those the customer has shown interest in
Utilize contextual recommendations based on factors like time of day, season, or current events

For example, Netflix uses AI to recommend shows and movies based on viewing history, significantly increasing watch time and customer satisfaction.

To enhance your AI-powered recommendations:

Continuously refine your algorithms based on customer interactions and feedback
Use A/B testing to optimize the placement and presentation of recommendations
Combine AI recommendations with human curation for a balanced approach
Be transparent about how recommendations are generated to build trust with customers

Remember, while AI can provide powerful insights, it’s important to maintain a human touch in your customer interactions and to respect user privacy when collecting and using data.

Conclusion: Boosting Your AOV for Long-Term Growth

Increasing your Average Order Value is a powerful way to grow your online business without necessarily increasing your customer base or marketing spend. By implementing these 20 strategies, you can encourage your existing customers to spend more, leading to higher revenue and improved profitability.

Remember, the key to successfully increasing your AOV is to always focus on providing value to your customers. Whether it’s through bundled deals, personalized recommendations, or exclusive perks, your goal should be to enhance the customer experience while encouraging larger purchases.

As you implement these strategies, keep these final tips in mind:

Test and Iterate: Not all strategies will work equally well for every business. Continuously test different approaches and refine based on your results.
Know Your Audience: Tailor your AOV-boosting strategies to your specific customer base. What works for a luxury brand might not be effective for a budget-friendly store.
Balance Short-Term Gains with Long-Term Loyalty: While increasing AOV is important, don’t sacrifice customer satisfaction and loyalty for short-term gains.
Monitor Your Metrics: Keep a close eye on not just your AOV, but also related metrics like conversion rate, customer lifetime value, and customer satisfaction scores.
Stay Ethical: Always be transparent with your customers and avoid manipulative tactics that might boost AOV in the short term but damage trust in the long run.

By thoughtfully implementing these strategies and continually refining your approach, you can significantly increase your Average Order Value and set your online business on a path to sustainable growth and success.

Remember, increasing your AOV is not just about making more money—it’s about providing more value to your customers and building stronger, more profitable relationships. As you grow your AOV, you’ll be growing your business’s potential for long-term success in the competitive world of e-commerce.