5 Simple Hacks To Boost Your Shopify Store's Average Order Value

Posted by Joel Platini on 02 October 2020 in Shopify


Every eCommerce owner’s dream is to attract more customers to their Shopify store. But having more customers doesn’t mean more revenue, you need to increase your average order value.

What? Doesn’t having many customers boost your sales and revenue?

Yes, they do. But remember, if there are too many customers who spend very little on their purchase it will impact your profitability.

That is why it is essential to improve your Shopify store average order value, so you can increase your revenue even with minimal customers.

What is the Average Order Value?

Shopify store average Order Value is a measurement of average dollars a customer spent every time they made a purchase.

Figuring out your Shopify store average order value can help you track the purchasing habits of customers and their preferences.

The interesting aspect of the Shopify store average order value is that it doesn’t cost you much for boosting it, unlike customer retention and increasing your traffic.

How to increase average order value?

E-commerce store average order value is crucial if you want to earn more profits from your store even with lesser customers than your competitors.

All you have to do is make sure that the customers fill more items into their carts.

That’s how to increase the average order value of your Shopify store.

So, here are some of the effective ways that will show you how to motivate customers to add more items to their carts.

Set a purchase limit to earn discounts

Discounts are something that would grab a customer’s attention right away, but now you’re going to use those discounts to boost your Shopify store average order value.

How can I do that?

Simple, By fixing a Threshold!

If you’re a prominent eCommerce customer, you might’ve come across this criteria saying ‘purchase more than 100$ to earn the discount’

The 100$ limit is the threshold, as the customer will already be enticed with the discount, now all he has to do is fulfill the criteria of 100$.

If he crosses the threshold and purchases more than 100$ he’ll earn his discount simultaneously increasing your eCommerce store average order value.

Another brilliant and most tested way of using the discount threshold is Free shipping.

Reports say that lower shipping rates always churned in better conversion rates.

So, offering free shipping when a customer crosses the discount threshold is a great way to increase your average order value.

But you must be careful with the price, if the price is too high, the customers will bounce, If the threshold price is too low, you’ll lose the profit.

So, you must decide the right price threshold for this tactic to work. Many stores have done this successfully, it’s time you do it too.

Acknowledge your loyal customers with rewards

The goal here is to increase the average order value, which means you must motivate the customers to purchase more.

And the right type of customers to begin with are your loyal customers. Because studies show that loyal customers spend more than new customers.

How do I do that?

Well, initiate a loyalty program in your store.

If years of eCommerce shopping have taught us something then it is the fact that both the customers and store owners love Loyalty programs.

As a store owner, it will help you to build a better relationship with your customers. The loyalty program can also increase your customer retention rate and boost your WOM marketing.

But how does a loyalty program increase Average order value?

Well, you can offer special incentives to frequent heavy spenders. You will apply new levels to this program, increasing the rewards as the amount paid in order increases.

Upsell and Cross-Sell your products

So, why are we here? To increase the average order value of our stores, right?

Increasing order value means adding more items to the cart. And how to persuade customers to add more items to their cart?

Simple, by cross-selling the products.

Yes, every time customers add a product to their cart show them a similar product that can go with that product.

You might’ve come across the ‘Frequently bought together’ or ‘Products related to this item’ section on every product page, That’s cross-selling.

When your customer adds a laptop to his cart, you can recommend a laptop skin or a laptop accessory that goes well with the product.

This will motivate the customer to add the complementary product to his cart thus boosting your Shopify store average order value.

There is also another similar way to boosting your eCommerce store average order value, it is called upselling.

Cross-selling is where you motivate the customer to add similar or complementary items to their cart. Whereas upselling means motivating them to purchase a more expensive item.

This means giving consumers the ability to purchase a better quality edition of the same products. When they have selected a product, you can ask them to improve and purchase a better one.

Even though the product is expensive, customers will go for it thus increasing the value of the cart and your eCommerce store average order value.

Sometimes a customer might abandon their cart due to a bad deal, but you can recover them by upselling using cart recovery emails.

Recovering your carts can also increase your Average order value greatly.

Offer limited-time discounts

Time is the most crucial thing, it can impact your sales in both positive and negative ways.

On the other hand, discounts can influence your sales greatly in a positive way and it can also increase your Average order value.

But a discount without a time limit is obsolete, there is no use for it customer, Customer won’t be enticed enough to purchase if the discounts last for weeks.

That’s why you must put a time-limit to the discounts you offer to rush the customers to make a decision.

You would’ve come across deals like these black Friday deals, daily deals, and more. These are time-sensitive deals.

The customer will be excited to see these discounts but the real catch here is the time. They will hurry to purchase it because they know that the discount will be available only for a certain period.

This creates a FOMO(Fear of Missing out), so the customer will rush to purchase the product before the time runs out thus increasing your eCommerce store Average order value.

A brilliant way is to use this tactic on expensive products so you can increase your Average order value.

When you think about it, it is also a . type of psychological trigger. Many stores use them to boost sales and revenue.

Create a Sense of Scarcity

One of the most common tactics used by almost every eCommerce store in the world is showing a scarcity of products.

This is used to encourage the customer to add the product to their cart before it is sold out.

But how can it increase your Average order value?

You see, scarcity is always used for expensive products, stores don’t display scarcity for products with low price, no one would buy it.

But by displaying scarcity for expensive products, stores create a FOMO(Fear of missing out) among customers. So, they rush to the store to purchase an expensive product before it is too late.

This is how you can increase your Shopify store Average order value using scarcity.

You can use plugins that have a countdown timer or a popup feature to show the time is running out for this deal. This will surely induce fear in the minds of customers.

Like we said before, Shopify store average order value is the dollar spent on each purchase.

So using scarcity for products at a great price can really boost up the AOV of your store.

Wrapping Up

If you want your Shopify store to be successful then you must increase your average order value. That’s why we charted out to find how to increase the eCommerce store average order value of an eCommerce store. And crafted this article to show the easy steps you can follow to increase the average order value of your Shopify store.


Author Bio

Joel Platini is a Content Writer and Graphic Designer with an immaculate experience in writing keyword enriched content for eCommerce websites. Familiar with WooCommerce plugins he has written how-to guides with elegance and finesse.