When you own an online store you definitely want to increase average order value. This can seem a bit hard that is why we would like to help you with 12 outstanding tips so you can easily succeed in this field too.
Creating your online store is a huge step in your business. You have a lot of work to do after you have launched your store, so it is not enough if you create an exceptional store, you have to put a lot of effort during the whole existence of your store. This concerns increasing average order value too.
Average Order Value
The average order value is the value that you get after you divide your total income by the number of orders. For example, if you earn $600 a day and 20 customers used your online store to buy products, your average order value is $30 for the day.
This data can be very useful if you want to learn about your customers’ shopping habits to improve your online store and your marketing strategies.
Why Is It Important to Increase Average Order Value?
It is important to increase average order value as it can be much easier than trying to find more and more new customers. That way you can easily grow your profit without having to spend a lot on advertisement for more customers. This can be a very effective way to save some money on the strategies that you would spend thousands of dollars on.
How Can You Increase Average Order Value?
There are different great tactics that you can use to increase average order value and become more successful with your online store. We give you 12 tips that you can use freely if you want to put greater emphasis on making your online store better and increase average order value. You do not have to use all of them, because each store is different and you can get to each customer in a different way. Although, you can always try out something new so you and your customers will not get bored.
1. Gift Cards or Gifts
Our first tip to increase average order value is to give gift cards or small gifts after a given amount of products you sell for a customer. You can send them cards or small gifts with the ordered products and your customers will get a surprise when they open the package. This good experience will convince them to buy more and more even at the same time.
You can also encourage them by pointing out the opportunity of a gift card or gift after they achieve the given threshold. Although you have to keep in mind that people will not spend a huge amount of money in all of the cases and a smaller threshold can be very effective in accomplishing a greater average order for your store.
2. Free Shipping
Free shipping can be also in connection with a threshold. Your customers will buy a little bit more if this means that they do not have to pay for the shipping. However, you have to pay attention to the amount of money that you appoint because they will not spend a lot more just to achieve this verge, they will just simply pay for the shipping.
You can also think about raising the prices a little bit higher because that way you can provide free shipping (which is not actually free as customers pay for them via the products they order) for your customers and they will be eager to order from you after that.
Upselling is a very beneficial tool if you have different kinds of products with more functions and a different price. You can easily encourage customers to buy better products with different methods. If they want to buy something which you have a better of, let them know so they can decide to choose that one instead.
With upselling, you can easily increase average order value in your online store without forcing the customers to buy as much as they can so you will have a better profit out of their purchase.
Upselling is also very advantageous if your customers would like to buy a product but they cannot find it, only a smaller one or one without the useful features they would like to have. With this method, you can show them that you have the exact product they desire.
Cross-selling is sometimes confused with upselling although it is a bit different. When you want to try cross-selling, you can easily increase average order value by offering additional products to your already existing customers. When they want to buy for example a bicycle, you can offer further gadgets e.g. helmets, bike pumps, water bottles, bike locks, etc.
That way customers can decide if they want to buy more items and in most cases, they decide to do so. Moreover, you increase average order value without convincing your customers to buy a more expensive product but still spending some more and buy other products.
However, this method might not work for everyone, if your products have something in common, you should consider trying this one out.
In connection with cross-selling, you can also start and create packages, sets with several products. You can sell different packages with a lot of products for a good amount of money. You can even create discounts so whenever a customer decides on buying a product show them that it would be beneficial to buy a whole package because they can get the given one a lot cheaper.
Although this might not be as profitable as planned as people might not want to buy more and they would spend more on the one item they were searching for. However, if you create packages with a reasonable price and products they will surely decide to choose them and spend some more which could increase average order value in your store.
6. Limited Time Offer
If you want your already existing customers to buy a given product, you can send them emails about limited-time offers in connection with a discount. Using a countdown timer would increase the urge of buying the product.
Limited time offers are not like simple discounts as they do not occur a lot of times. It is also beneficial if you create a time offer that stands for one or two days so your customers will be pressed forward to buy the item as fast as possible.
If you want to try out this method to increase average order value in your online store you have to be conscious about collecting email addresses from your customers so you can send them these offers later on without any delay.
If we have already mentioned discounts let’s see how this works for you. If you create discounts you need to emphasize the amount of money they can save. This will create the urge to buy the items because they can save a lot with their quickness.
The discounts can make the customers buy more as they will see the opportunity to buy those things that they wanted for a long time. You can also create other requirements for the discounts like a threshold for free shipping.
However, you need to be realistic with the discounts too, it requires calculations for you so it would really increase average order value for your store.
8. Great Design
You would not even think about but a great design can be a huge advantage when you want to convince your customers to buy more. They will feel that if you put effort into creating the best store possible, you will sell reliable and outstanding products too.
Therefore, you need to create a decent design so your customers will instantly rely on your store and buy from you again and again so you can increase average order value without having to find new customers all the time.
9. Loyalty Programs
Customers like if they are being respected and looked after. If you create loyalty programs with members only, they will feel privileged to be part of this membership. You can create different stages of it and connect that with the amount of money they spend there.
This will make them spend more to get to a higher stage with different discounts and benefits. You just have to encourage them by showing what they missing right now which can easily be theirs if they can join that loyalty program.
Furthermore, you can create your customer base and you do not have to keep searching for them and you can increase average order value in your online store.
10. New Customers
If you want to increase average order value you sometimes have to look for new customers too. You need to create a great advertisement program so they will easily find your store and start buying from you. You need to keep in mind that a lot of things can contribute to your success starting from the design of your online store to the loyalty programs that you offer.
11. Flexible Return Policy
A flexible return policy can also increase average order value because your customers will buy more as they know they can easily return the products if you have any kind of problems with them. The customers will appreciate your reliability and buy more.
The flexible return policy can also be a good advertisement for you too as people will look for stores where they can buy without the fear of spending money on something which they cannot use later on.
12. Raise Prices
Our last tip is to raise prices to increase average order value in your online store. This idea can come in handy after several months or years because raising the prices each month would result in losing your customer base. This idea is mostly about products that have been sold for the same amount of money for a longer period of time.
You should be reasonable in this case too so when you raise prices you should not add a lot of dollars to the final price. It is also beneficial to consult with someone with this idea because they might give you great ideas on how to raise prices in your online store.
After these great tips let us see how Syncee contributes to your success.
Syncee is a global B2B platform with millions of products and hundreds of suppliers from the US/CA/EU/UK/AU + more. Syncee is a perfect place if you want to start your dropshipping online store and be successful with it. It is very easy to use and you can easily upload products in bulk or one by one into your online store, and keep the product data like price or inventory quantity automatically updated. You can look around on Syncee Marketplace and search for products that you need.
Trying to increase average order value can be a tough job but you can always look for new ideas and try out all of them one by one to see which one would be perfect for your business.