It’s impossible to over-stress the point that ecommerce optimization is about more than improving your ecommerce conversion rates.

At a fundamental level, optimization is about growing revenue. And if you want to grow your revenue you should be obsessed with increasing your average order value.

Before diving into the tips, let’s take a quick step back and look at the broader picture. The revenue that your store generates is calculated using a simple formula:

Revenue = number of visitors x conversion rate x average order value

Revenue calculation

A solid optimization strategy incorporates all three of these metrics. But at Growcode we consistently find that strategies that aim to boost average order value are often overlooked.

But no more! If you’ve ever been uncertain about how to improve average order value, then you’re in the right place. By the end of this article, you’ll be armed with eight powerful strategies for notching up the price and value of your customers’ baskets.

Btw. check out one of our previous posts if you wonder how to calculate average order value or you are looking for average order value benchmarks. You can also watch a video about increasing average order value and then read the post to solidify the knowledge!

So what Average Order Value (AOV) boosting tips you’ll find here?

  1. Offer bundles to improve average order value
  2. Offer discounts for additional items
  3. Implement a free delivery threshold
  4. Offer cross-sells to grow average order value
  5. Offer up-sells
  6. Offer upgrades through additional services
  7. Offer financing options for expensive items
  8. Offer free gifts with higher priced items to increase average order value

Let’s Dig in!

1. Offer bundles to improve average order value

Offer products available to buy on their own as part of a bundle of two or more items, thus providing added value. The main incentive is usually a lower combined price in comparison to the same set of products bought separately.

Gocase, for example, shows bundles right next to single products on its search and category pages, highlighting additional discounts.
Product bundles and additional discounts on product pageShow bundles right next to single products on its search and category pages and highlight additional discounts to increase average order value.
It’s also wise to show bundles on product pages just like DigitalRev does, who also highlight additional savings.

Bundles on ecommerce product page

Finally, if you really want to go the extra mile, you could replicate Best Buy‘s strategy and provide a bundle creator, letting users freely mix and match selected products.
Bundle builder to increase average order value
User clicks “Build A Bundle” call to action and then adds products to create his desired mix.

2. Offer discounts for additional items

To incentivize users to buy more than one item per order, offer a 10% discount for additional items.

Gocase provides us with another handy example. It offers 20% off when customers buy two items (plus free shipping), 30% if they buy 3 items, and so on.
Additional discounts to increase average order value Gocase offers a additional discounts when buying more products.
Gocase also displays a progress bar on the shopping cart page, informing customers of their current number of discounts and how many more are available. This neat little feature adds an element of gamification to the shopping experience.
Progress bar on a ecommerce shopping cartProgress bar adds an element of gamification to the shopping experience and encourages to add more products.

3. Implement a free delivery threshold

Offering free delivery for orders over a certain value urges visitors to add more items to a single order or opt for higher priced items.

It’s crucial, however, to prominently advertise this offer on all of your store’s product pages and follow up on the cart page.
Communicating free delivery on product pageCommunicate free delivery, like Puravida does,  on all of your store’s product pages and follow up on the cart page.
If users qualify for free shipping, congratulate them. This will incentivize them not to abandon the order.
Free delivery after certain value of order
If they are a few euros or dollars below the threshold, remind them about the offer and suggest products that will nudge them over the limit.

4. Offer cross-sells to grow average order value

People often confuse cross-sells and up-sells. Cross-selling means selling complimentary or related products, usually at a lower price point than the main item. The aim is to sell more products per order.

You can easily promote related items on product pages and during checkout. House of Fraser, for example, show images of belts and long-sleeved shirts on product pages for parkas.
Ecommerce cross-selling
After displaying items on product pages, follow up with cross-sells on the cart page when a customer is about to pay for their order.
Showing cross-sells on a shopping cartFollow up with cross-sells on the cart page when a customer is about to pay for their order so he may add something in the last moment.
And here’s a quick pro tip: it’s usually easier to cross-sell cheaper items than the one being purchased. So if someone is shopping for a 200 GBP parka, show him a 40 GBP belt.

5. Offer up-sells

Up-selling means promoting either a more expensive item with extra features or add-ons that constitute an upgrade. As with cross-selling, this can be done on both product pages and at various points during checkout.

Kooding provides us with a great example. On the product page for its $36.99 joggers, numerous other pants with higher-quality and more numerous features are promoted. Note how not a single pair of these pants is cheaper than the ones currently on offer!
Ecommerce up-sell on product detail page

6. Offer upgrades through additional services

I love this strategy because it usually impacts profit margins significantly.

If I could only recommend one strategy to store owners wondering how to increase average order value, it would be this one.

Offer upgrades to products by allowing customers to add additional services. These could be extended warranties or gift wrapping options.

Best Buy, for example, offer comprehensive protection plans. After clicking “Add to Cart“, users are shown a toplayer/pop-up that reiterates the offer of a protection plan, along with some additional cross-sells.
Offering protection plans to increase Average Order Value
These offers are best shown on product pages, in close proximity to the “Add to Cart” or main CTA (Call To Action) button.

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    7. Offer financing options for expensive items

    If you sell expensive items, it’s a good idea to offer multiple financing options. Many customers will be eager to buy a product but unable to afford it. Similarly, the option of paying in small monthly payments can make high-ticket items more appealing to certain shoppers.

    Best Buy comes in again as a handy example. Right next to the price on product pages, they show additional information about finance plans.

    The offer of a TV for a mere $55.00 a month is a very appealing one!

    8. Offer free gifts with higher priced items to increase average order value

    This is a popular strategy in the cosmetics industry. Ulta Beauty, for example, offers free gifts – additional items for no extra price – with selected products. It’s wise to offer gifts with higher-priced products to make them more appealing.
    Offering free gifts to boost AOV
    Follow Ulta’s lead and create sexy labels to make the information stand out. And don’t forget to show this information on both the listing and product pages.

    Summing it up: 8 tips to increase your average order value

    Ok, so let’s quickly sum up what we’ve covered. Keep this checklist handy when you’re planning your next optimization sprint!

    • One: Offer bundles.
    • Two: Offer discounts for additional items.
    • Three: Offer free delivery threshold.
    • Four: Offer cross-sells.
    • Five: Offer up-sells.
    • Six: Offer upgrades through additional services.
    • Seven: Offer financing options for expensive items.
    • Eight: Offer gifts with higher priced items.

    Follow these tips and you’ll grow both your average order value and your profit margins.

    Oh, and one more thing – don’t forget to split-test!

    Want to Growth Hack Your Average Order Value Even More? Download Our 115-Point Ecommerce Checklist

    Want to learn about the best ways to growth hack your revenue, profits, conversion rate and average order value? In our 115-point ecommerce optimization checklist for 7+ figure online stores, we cover the best strategies for all your pages, from the homepage to the checkout page.

    💡 At Growcode, we develop and maintain online shops and B2B ecommerce on Magento!

    Growcode Ecommerce Blog / Ecommerce / How to Increase Average Order Value (AOV): 8 Proven, Actionable Tips