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4 Ways to increase average order value for your eCommerce store

You’re spending considerable time, money, and effort in ranking your eCommerce website and attracting customers to your store. But how much attention are you giving to cart size?

Increasing the average order size for your eCommerce store is an easy way to increase revenue without increasing effort to attract more customers, and we’re here to show you how with 4 high-performing tactics.

Why average order size matters

Average order size, also known as average order value, is the average amount of money a customer spends in one transaction on your eCommerce store.

To calculate your current average order value, divide your total revenue by your total number of orders. For example, a store with $10,000 revenue and 500 orders has an average order size of $20.

Total revenue / total number of orders = average order size

But average order size isn’t just another nonsensical figure to add to your long list of sales data. It’s an important metric that can result in increased profits, better marketing ROI, reduced shipping rates, and more opportunity to impress customers and attract them away from online marketplaces.

Ways to increase average order size

Accordingly, the average order value for your eCommerce store is an important metric to monitor and grow, but with nearly one-third of online shoppers driven by low prices, how do you increase average order sizes without scaring customers away?

1. Incentivize minimum spend

One of the easiest ways to increase average order value for your eCommerce stores is to incentivize customers to spend a minimum amount. Not only does this tactic increase order size, but the additional revenue generated helps you to offset the costs of the incentive.

For example, you can offer free shipping for orders over $20, a 15% off coupon for baskets containing three or more items, or 2-day delivery when someone spends more than $50.

Whatever you offer, it’s essential that it’s relevant to your intended audience – an offer of free gift wrapping might encourage Christmas shoppers to spend more, but it’s not relevant to anyone shopping for themselves or for everyday items.

2. Recommend products

A great tactic from physical retail stores in increasing basket size is distracting shoppers with other products they might be interested in. In-store, this is achieved by placing commonly bought items at the back of the store or at the top of the shelf so that shoppers walk past or look at other products first. Online, the same result can be achieved by:

Upselling items on the product page

Include comparisons on product pages of more expensive items, including links, photographs, and customer reviews as to why the more expensive option is better.

Cross-selling items at the checkout

Enable customers to “quick add” complementary products to their basket at the checkout stage. For example, lens wipes for new sunglasses, a shaker for a protein shake, or a carry case for a laptop.

Fueling fear of missing out

Add a banner of products that “other customers also bought” to product and category pages, to demonstrate social proof and incite the customer’s fear of missing out on an essential add-on.

3. Increase perceived value

Another way to boost average order size is by using consumer psychology to increase the perceived value of goods. Doing so makes customers feel that they are getting more for their money, and are therefore happy to spend more. Successful ways of increasing perceived value on your eCommerce store, include:

Bundled products

By grouping products together at a discounted price, you attract customers with the money they’ll be saving, while also encouraging them to spend and buy more than they had originally intended. This works really well for multiples of everyday items, such as cleaning or healthcare products, and combinations of different products, such as items commonly bought together.

Price anchoring

Price anchoring gives customers a point of reference for valuing your products, which can be used to encourage them to spend more than they originally intended. For example, displaying the original price of a now reduced item can convert a customer based on the saving they’re making, rather than the price that they’re paying.

Further reading: Discover other tactical pricing methods in our guide to Shopify pricing strategies.

Free shipping

We’ve already touched upon shipping as an incentive, but free shipping can also be used to increase perceived value. This works remarkably well when offering next-day or 2-day deliveries on your eCommerce store – services that usually come with a price tag on other websites.

4. Build a relationship

Online shoppers are willing to spend more with brands they trust; in some cases, up to 70% more. Therefore, building a relationship of trust and familiarity with your customers can lead to bigger baskets and more expensive shopping carts. Ways to build customer relationships that encourage bigger spending include:

Loyalty programs

Loyalty and reward programs are great customer retention tools, but they can also be used to increase spending and basket size. For example, by implementing a tiered loyalty program that rewards customers based on spending levels, you can encourage customers to spend more in pursuit of the next level and perk.

Recommending items on email

Not all tactics for increasing order value have to occur on your eCommerce store. Post-purchase marketing emails can be used to build customer relationships and send product recommendations that increase future basket size. Just remember to keep all recommendations personalized and relevant to previous purchases.

Live chat

And finally, sometimes customers just need someone to talk them into spending more. Offering live chat on your eCommerce website gives shoppers an opportunity to ask someone questions, overcome doubt, and be persuaded to buy those shoes that don’t need but really want.

Final thoughts

With everyone focused on increasing customer numbers and reducing cart abandonment, implementing these tactics for growing your eCommerce store’s average order size can keep your store ahead of the competition while also keeping your profits ahead of predictions.

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