Guides · April 30, 2023 · 3 min read
Six Tips To Boost AOV For Shopify Store
Average Order Value is a core profitability metric. Six practical tactics — upselling, loyalty, gift cards, bundles, free shipping, and time-sensitive sales — to raise it.
By Polo Themes
The Definition of AOV
AOV (Average Order Value) is the average value of each order in your online store. It is one of the most essential metrics for measuring whether your business is profitable. Take a toy store: if it has total revenue of $10,000 across 500 orders, its AOV = 10,000 / 500 = $20. When buyers spend more each time they order, your store gets a higher AOV.
The Importance of AOV
The primary goal of every company is increasing sales, but that’s not enough for profitability — there are many variable expenses to account for. Increasing AOV maximizes profit. AOV informs decisions about your marketing budget and strategy, reasonable product pricing, and which tactics to use to boost order value.
Tips to Boost AOV for a Shopify Store
- Upselling / Cross-Selling — sell a more expensive item (upsell) or related items like screen protectors and cases alongside the main product (cross-sell).
- Loyalty Programs — give customers points for spending; when they know they’re earning points, they add more items to their carts.
- Gift Cards — encourage more spend per order to unlock a voucher (e.g. a $5 gift card for orders over $40 when AOV is $25).
- Bundles or Packages — combine related products at a discount (a Barbie figure, dress, and shoes worth $23 offered as an $18 combo) to lift AOV while giving customers a deal.
- Free Shipping — set a dollar threshold that qualifies for free shipping (offer it on orders of $40+ to push a $30 AOV toward $39).
- Time-Sensitive Sales — urgency, as in Black Friday or Cyber Monday deals, can boost AOV dramatically.
