Are you struggling to increase the average order value (AOV) for your Shopify store? You aren’t alone — most Shopify store owners face this challenge, even if they have a successful online business. However, executive small changes in your store can maximize the AOV without burning a hole in your budget. In this article, we discuss some of the best tactics to improve Shopify average order value.
But first, let’s define AOV and why it’s important to confront this challenging metric.
What is average order value (AOV)?
AOV is one of the key metrics to focus on when engaging in this type of optimization effort.
It measures how much customers spend on each purchase and indicates how successful a business is at monetizing each customer – in other words, it tells you how much money your Shopify store makes each time a customer buys from you.
A high AOV is a sign that customers are confident in the store and more likely to return for future purchases. An increase in AOV indicates a growth in both repeat customers and profitability. With this in mind, let’s jump into some tactics to improve your Shopify average order value.
How to increase the average order value on Shopify?
There are several strategies you can use to increase the average order value on Shopify. We’ll discuss them in more detail below:
1. Use Preorder & Restock Alerts
In addition to incentivizing shoppers to buy more items, you should also consider setting up preorder and restock alerts for specific products in popular categories or collections with high demand.
Adding a “Notify Me” button on your sold-out items will help ensure that customers are informed when restocked items become available by providing them with notifications to take advantage of the opportunity before it passes them by.
Also, you can consider using a preorder to take orders upfront, which will help you increase your revenue streams. Allow customers to preorder upcoming products, creating anticipation and encouraging them to add more items to their cart. Clearly communicate the expected release dates and any exclusive offers available for preorders.
Keep in mind that preorder and restock alerts will help build anticipation for upcoming collections and keep shoppers engaged with your store, which can further increase their AOV.
Read more: How To Save Your Business When Running Out of Stock On Shopify!
2. Use Loyalty Programs & Rewards
Another great way to propel Shopify average order value higher is through loyalty programs and rewards systems. It’s no surprise users are drawn towards companies that reward their loyalty—you just need an effective way to do this for customers who come back again and again without breaking the bank or creating large promotional campaigns. It does not necessarily require discounts or points but something like exclusive access or early previews before other customers.
To name a few incentives—offer free shipping or discounted express delivery for advertised products, grant exclusive access or substantial discounts in certain product categories for VIP customers, or throw in extra items at no additional cost when users hit milestones like their 10th purchase! All these initiatives reward shoppers directly while incentivizing higher spending on average orders because none of these rewards cost anything on the part of the shopper but rather lead them closer to making a purchase with higher AOV amounts!
3. Offer product bundles
One way to increase your Shopify average order value is through product bundling. The idea behind this tactic is quite simple – by offering customers a package deal that includes multiple products for one price, you reduce the amount of time they have to spend comparing different prices on different items individually and encourage them to buy more items (and pay more) in one go.
This strategy allows customers to save time and money by bundling products together that either complement each other or have a common use. For instance, if you own an online store that sells watches and wallets, you can bundle them together as a package and offer customers a discounted rate for purchasing both products at the same time. In addition, product bundling can be used to up-sell higher-priced items or offer customers access to exclusive bundles.
Consider adding seasonal or holiday-themed packages for certain periods to drive more sales of multiple items at once.
4. Leverage Promotional Offers
Another great tactic for increasing Shopify average order value is to use promotional offers. These can take many forms, including discounts on certain products or categories, free shipping offers, money-back guarantees, early access discounts, loyalty rewards, or even contests. Such offers are excellent for enticing customers to purchase more products or spend more per purchase.
Discounts, in particular, can be great for encouraging customers to take advantage of sales and deals, which will boost your AOV substantially in comparison to standard prices. For instance, if you normally sell a watch for $100 but offer a discount of 10% off during special limited-time promotional events, then customers who take advantage of the deal may purchase two watches instead of just one when they realize the savings. This, in turn, doubles your AOV without increasing your cost structure.
5. Checkout UX Optimization
Even if you have great features at play bringing in traffic to your Shopify store reliably — if users don’t find what they’re looking for quickly, chances are they will move away without making any purchase! Sometimes, even small changes can have large impacts on conversions – especially when it comes to checkout UX optimization. As many potential customers abandon their shopping carts due to long and complicated checkouts, making sure the process goes smoothly from start to finish can dramatically reduce cart abandonment rates and raise your Shopify average order value.
So make sure you are utilizing user-friendly checkout forms to get all necessary information quickly while also reducing distractions such as pop-ups or banners, which could divert attention away from the main purpose of completing a purchase. Additionally, look out for opportunities such as auto-filling customer address information based on zip codes or offering multiple payment options – optimizing user experience through little improvements not only boosts conversions but also encourages more items to be added to each shopping cart due to faster checkout times.
6. Set Up An Upsell & Cross-Sell System
If you sell multiple products on your online store, adopt an upsell or cross-sell system — both tactics have been proven time and again as effective ways to increase Shopify average order value significantly. Here’s how each one works:
Upselling involves presenting customers with more expensive items than those they initially considered purchasing; this encourages them to spend more money than they initially intended to get a better version or an additional item. Cross-selling involves offering related product bundles/packages; this helps customers save money by buying in bulk and purchasing items together that complement each other rather than buying them separately at the regular price point.
In both cases, ensure all upsells/cross-sells appear simple and easy – don’t make customers jump through any extra hoops during checkout! Offer straightforward packages that are hard to refuse rather than complex bundles, which might confuse certain shoppers who aren’t used to buying in larger quantities or higher price points.
For instance, look for products that provide customers with extra value, such as extended warranties, upgraded versions, or accessories associated with the original purchase. Additionally, if customers have already purchased something, they are likely interested in related products. Use this opportunity to recommend other products that could work well with what they purchased and increase your AOV at the same time.
Conclusion
Increasing Average Order Values is key if you want to generate more revenue from your Shopify store without having to raise costs. But with so many tactics available at your disposal, choosing the correct approach may seem overwhelming. This article provides an overview of various tried-and-true methods to boost your AOV on Shopify. Utilizing some or all of these strategies will help business owners build better relationships with their customers, encourage them to spend more per purchase, and ultimately result in the maximum possible return on investment.