Increasing Average Order Value(AOV): A Guide for Ecommerce Stores on Shopify


Chris Rausch


June 29, 2023

Are you maximizing each sale in your Shopify store? With the average conversion rate hovering around 2.5%, every order counts - and the more you can get customers to spend per order, the more profitable you’ll become.

In this guide, we’ll show you how to increase average order values (AOVs) using various upsell, cross-sell, and other strategies that you can implement in any Shopify store.

Why You Should Know How To Increase Average Order Value

increase average order value

Online sales is a competitive business. With vast competition, multiple marketing channels, and high expectations from customers, you need to be sure that you’re doing everything you can to maximize profitability.

Knowing how to improve average order values can help you to grow your business by making each conversion mean more. When you increase AOV, you grow your revenue without spending more money on acquisition costs like advertising. This “free” profit that you generate by implementing various strategies for increasing AOV can then be used to grow your market share, expand marketing, lower product costs by increasing bulk purchases, and fund research and development of new products.

Plus, many of the strategies we recommend are low-risk, low-cost, and high-reward, making it simple to increase average order values in your store.

How To Increase AOV

Buy One, Get One

Everyone has heard of buy one, get one (BOGO) deals. They’re an effective strategy for encouraging customers to spend more than they planned because they’re already buying the “one,” but the “get one” is extra revenue (unless they “get one” for free).

Stores that sell consumables benefit most from BOGO deals because customers may consider spending more now so that they don’t have to pay a separate shipping fee or remember to reorder later. Selling two products also increases the chances of products being shared with others to grow your audience.

Complementary Product Cross-Sells

Would you like fries with that? Your job as a business owner is to provide the most complete shopping experience possible for your customers. Sometimes they may forget something or not know they need it in the first place. 

Cross-selling includes recommending products that are complementary to the primary item being purchased. You might recommend another item in a set, a shirt to go with pants, an essential tool, or any other product that makes sense alongside the primary item being purchased.

When you cross-sell, either at a discount or at full price, you help ensure that the customer leaves with everything they need at once - and they bought it from you instead of someone else.

Pre-built Bundles

Customers will come to your store with varying levels of experience with your industry. Whether they’ve done their research or just saw an interesting ad, offering pre-built bundles can help to address customers’ needs and show your expertise.

If someone is new to your niche, a complete bundle that has everything they need - whether they know it or not - is a great starting point for them to be introduced to your business. Customers will appreciate you making it easy for them, and experienced shoppers will see that you know your niche well.

Upfront Payment Discounts

What’s better than getting a customer to sign up for a monthly membership? Collecting a whole year upfront.

Plans, subscriptions, and memberships that are paid on a monthly basis are great for providing extra cash flow. However, you risk the customer canceling within a few months and generating less revenue over their lifetime.

You can improve average order values by offering discounts for upfront payments that span a term period. Instead of worrying about a customer canceling, you can lock them in for a specific term by making a prepaid offer when they’re most excited - at the initial purchase phase.

Free Shipping and Gift Minimums

Customers hate paying for shipping - and up to 48% may abandon their cart for this reason.

Free shipping minimums encourage customers to buy more products instead of spending their money on shipping, allowing you to generate additional revenue while paying lower-cost shipping to maximize your margins.

Free gifts at certain thresholds can also be a way of increasing average order value because customers end up spending more than they intended to - effectively paying for the “free product” - just to get something free.

Loyalty Rewards

Loyalty rewards are an effective customer engagement strategy alongside improving AOV. You’ll be able to collect their information to be used for marketing campaigns when they register, helping you to increase your advertising reach. 

When you create a loyalty program, you also encourage customers to spend more to earn points or increase in rank so that future purchases may be discounted or special perks will be provided. It also increases the chances that they’ll return to buy again, improving your customer lifetime values as well as average order value.

Protection Plans and Warranties

Some customers like to have the peace of mind that their purchase is going to last. If you sell products that undergo wear-and-tear or have a higher risk of malfunctions, like electronics, insurance can help.

While usually a fraction of the original purchase price, protection plans, and warranties are a simple way to add more to customer orders. You’ll need to be certain that your prices make up for the amount that the warranties cost you over a product’s lifetime, however, so it may be harder to implement warranties quickly.

Post-Purchase Offers

Most people think that the sales process is over after customers place their orders. However, after capturing the payment information initially, you have the opportunity to convert one-click upsells or cross-sells.

A post-purchase offer can include any of the strategies we’ve already recommended. You’ll want to create offers that instill urgency so that customers are more likely to upgrade their purchase with a cross-sell or upsell offer by taking advantage of the prior payment authorization. All it takes is one click!

How UpsellPlus Helps You Increase Your AOV

how to increase average order value

The upselling and cross-selling strategies we’ve included above can be easily implemented with the right app for Shopify. Fortunately, UpsellPlus and our partners can help you achieve them - and more - to help you begin increasing your AOV.

With custom offer builders and AI-assisted product recommendations, you’ll be able to implement any BOGO or cross-sell deal. Use logic to ensure your offers always make sense, A/B testing to find what works best, and advanced reports to help you refine your strategy for better results.

Get started today with a free 7-day trial.

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