7 Ways for Online Businesses to Increase Their Average Order Value

7 Ways for Online Businesses to Increase Their Average Order Value

Businesses that accept credit card payments online often work hard to maximize website traffic and sales by keeping up to date with Google’s changing algorithms, exploring targeted ad spends and consistently reviewing traffic sources in order to increase conversion rates. However, they may still at the end of each quarter find themselves unsatisfied with revenue. One avenue to increasing revenue is in your Average Order Value (AOV), and here are eight simple tips which will assist you in growing it.

Add a Free Shipping Threshold

Research indicates that 40% of customers are willing to purchase more items if their order will qualify for free shipping, and also that a lack of free shipping itself is direct cause of cart abandonment. One recourse is to offer free shipping on orders which skew slightly higher than you average AOV. To see the impact, try A/B testing with free shipping versus free shipping after a minimum order, and measure your cart abandonment rate, number of sales, revenue and AOV.

Establish a Limited Period Offer

In order to discourage shopper’s procrastination in their purchase decision, create a sense of urgency by instituting a limited duration applied to the offer, for example: “Receive 50% off on all items” might compel the shopper to peruse products, whereas “Receive 50% off on all products for the next 3 days” will elicit them to act immediately and will avoid shopping cart abandonment.

Offer a Minimum Purchase Discount

Looking to get rid of that dead stock by offering a healthy flat discount? Pair it with a minimum purchase discount of your choice, which will itself cover for any lost margins in offering that discount.

Offer Volume Discounts

Dependent on your type of business, offering discounts on bulk purchases of the same product may increase your average order value. Be careful in your decision on the correct discount value, since you want to attract shoppers while at the same time not cutting into your profit margin.


If instituted correctly, upselling is an effective way to increase your AOV. The trick here is not to be heavy-handed. Make sure to offer additional products directly related to the ones being perused. Overly aggressive tactics here will lead to shopping cart abandonment, while tactful ones may deliver an increase in not only your revenue, but also in growing your customer base. Everyone likes a deal!

Try Cross-Selling

While upselling has proven to historically be more effective than cross-selling, the latter shouldn’t be forgotten. Say for instance that your shopper has added a set of wheel rims to their cart. Why not offer them related tires, anti-theft lug-nuts and tire black as complementary products relevant to their purchase?

Use Purchase Incentivization

Congrats! Your customer has made a purchase. But what about the next one? Establishing customer loyalty and fostering that all important second-time visit are tantamount to increasing your profit margins. Offers of a loyalty card, a cash back offer on a next purchase or a gift voucher are all great ways to encourage your shoppers to become repeat customers, and to grow your average order value.