Increase Shopify AOV (average order value): It’s the goal of pretty much every e-commerce merchant. Given that bringing new customers to your store is an expensive undertaking (in fact, it can be five times more expensive than selling to an existing customer), making the most of the customers you do have is a great way to boost your bottom line.
So, how do you get each shopper to spend more in your store? Luckily, it’s not impossible to increase your AOV. In fact, it can be quite simple to boost those numbers. Let’s take a look at four easy-to-implement tactics that can have a real impact on your Shopify AOV.
Average Order Value (AOV) is a metric that helps merchants analyze their consumers’ buying habits. It refers to the average monetary value of each order your store generates. The average order value for an online store is calculated by dividing total revenue by total orders.
AOV = Total revenue / Total number of orders.
For instance, if your sales for April were $50,000 from a total of 1000 orders: $50,000 / 1000 = $50.00.
The AOV for April is, therefore, $50.00. Although the metric is often calculated monthly, you can also calculate it daily or weekly. Daily calculations can help compute AOVs for specific shopping sale events like Black Friday or Cyber Monday.
What’s more, you can track AOV via Google Analytics by setting up e-commerce tracking in your Google Analytics account. Once you do that, go to Conversions, click on e-commerce, and then Overview.
You’ll see many key statistics here. On Transactions, for example, you’ll see the AOV.
For Shopify stores, it is a lot easier. Simply go to the Analytics section to see many key sales metrics, including your AOV.
Your AOV helps you understand your customer behavior. Hence, to determine how to increase AOV on Shopify, you need to know your AOV and what products your customers buy frequently.
Those metrics will help you determine the best way to increase it in a way that makes sense for shoppers. Some of the benefits of increasing your Shopify AOV are as follow:
Customer acquisition costs can be quite expensive, especially if you are investing in CPC campaigns or other paid advertising. Given that it can be expensive to acquire new customers, it’s much more affordable to generate more revenue from the ones you already have.
This way, you can grow your revenue figures and let new customers find you over time – you don’t need to spend large amounts upfront on paid advertising to generate sales.
This one is pretty obvious. Revenue and profit increase as your average order value rises. The more you earn on an order, the more your store makes. Plus, if you are paying transaction fees for each order, a higher average order value can bring in more overall profit than three small transactions.
One of the most effective tactics to increase your Shopify AOV (we’ll discuss this in more detail below) is to offer your customers more products. If each customer just adds one more product to their order, you will increase your AOV and also move more stock.
You can focus these efforts on offering products you’re looking to boost sales for. Maybe there’s a slow seller you want to push, or a consumable that’s getting closer to its expiration date.
Knowing how to calculate your average order value is one thing, but knowing how to increase it is another. Increasing AOV is a huge concern for online retailers, but luckily, there are many ways to do so.
Bundling products can increase AOV by encouraging customers to buy more than they intended. For example, instead of giving discounts on individual products, you can bundle products and sell them at a lower price to increase your Shopify AOV.
Pair of Thieves offers packs of shirts as a bundle product, with a slight discount to sweeten the deal for customers. Those who were going to purchase a shirt may consider buying a pack instead, even if it’s a larger purchase than they originally intended.
This deal can be set up using PickyStory’s Combo Products, which essentially let you sell a bundle as a single product (on its own product page) in your store. You can add a Combo Product to your collections, so your customers see packs of products alongside single products when they are browsing.
Cross-selling and upselling are great ways to increase your Shopify AOV. Cross-selling involves encouraging your customers to add a similar, related product to a purchase. For example, a pair of socks to a purchase of a pair of shoes.
Upselling, on the other hand, involves selling an upgraded or otherwise more expensive version of a product, or a greater quantity of a product, to a customer. An example of upselling would be to encourage a customer to purchase a three-pack of shirts rather than a single shirt, or to add a warranty to the purchase of a new laptop.
While cross-selling and upselling can be extremely effective when it comes to increasing your AOV, you need to be smart about it. Make sure that the products you recommend to your customers align with what they need and reflect the products they are already browsing. For example, offering socks to a customer purchasing shoes makes sense. Offering a briefcase to a customer purchasing a swimsuit might not make sense.
Understanding your consumers’ preferences and why they buy certain products can be helpful. Unfortunately, we can’t give general principles or advice that will work for every e-commerce store. Instead, you must perform your research and adjust your offers based on your customer’s buying habits – start by analyzing your existing sales data for patterns of products commonly purchased together.
Giving shoppers the option to contact you quickly can also help increase sales and revenue. Live chats are a great way to not only assist customers but also upsell. Apps like ChatFuel, Tawk, and Crisp allow customers to communicate with you in real-time. Indeed, there are a lot of apps you can use that increase your AOV.
The use of a click-to-call widget is taking live chat to the next level. EasyCall is a Shopify app that allows customers to call you by clicking on “call to call.” You can improve your AOV a lot more if customers can speak with you in real-time.
A Salesforce study found that prospects who click on a recommendation have an AOV that’s 26% higher. Remember that your visitors aren’t just looking to buy products alone. They want a seamless shopping experience centered on their interests.
One of the best ways to deliver that is to offer shoppers personalized product recommendations based on their browsing behavior. Whether it’s a first-time shopper or a returning customer, their browsing behavior provides important clues that you can use to offer a unique shopping experience.
Amazon, for instance, designs home pages based on what people have searched for. If you spend time browsing laptop bags, it will automatically show you bags the next time you visit.
Product recommendations are all about providing a highly personalized shopping experience for each shopper. Instead of spending money to improve store traffic, use product recommendations to increase your Shopify AOV.
Before implementing these tips, know what your target demographic wants to see and how it will affect their buying habits. Curating a carefully constructed and well-thought-out buyer journey can help you identify the key moments and pages in your store where you can offer deals to increase your Shopify AOV.
Similarly, PickyStory has some amazing tools that are optimized for increasing your Shopify AOV. Whether you’re selling combo products or offering a unique cross-selling bundle on every product page, you are guaranteed to sell more to each customer with these tactics.
If you’re looking for more Shopify tips and recommendations, check out the PickyStory blog.
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