Increase Shopify Average Order Value: 10 Ways to Drive Growth

When we talk about e-commerce, especially Shopify stores, boosting Shopify Average Order Value (AOV) is a critical strategy for driving revenue growth.

AOV represents the average amount spent by customers each time they place an order on your website. Increasing this metric means more revenue from each transaction, enhancing overall profitability without necessarily increasing the number of customers.

For Shopify store owners, implementing effective techniques to raise AOV can lead to substantial business growth, improved customer loyalty, and a stronger bottom line.

In this blog, we’ll explore 10 actionable ways to increase your store’s AOV and drive sustainable revenue growth.

What Is the Average Order Value (AOV)?

Average Order Value (AOV) is a key performance indicator in e-commerce that measures the average dollar amount spent each time a customer orders from your website.

It is calculated by dividing total revenue by the number of orders over a specific period.

For example, if your store generates $10,000 from 200 orders monthly, your AOV would be $50.

                     $10,000  ​

    AOV =   —————— =  $50

                    200 orders

Understanding AOV is crucial because it directly impacts your store’s profitability. A higher AOV means more revenue from each transaction, which can lead to increased profits without the need to attract more customers.

It also provides valuable insights into customer purchasing behavior, helping you identify opportunities to enhance product offerings, pricing strategies, and marketing efforts.

How to Increase AOV of Your Shopify Store: 10 Proven Strategies

Let’s take a look at the strategies you can use to increase the average order value of your Shopify store:

1. Upsell & Cross-sell Magic

Upselling and cross-selling are two of the most effective strategies to increase AOV. Upselling involves encouraging customers to purchase a higher-end version of the product they’re considering.

For example, if a customer is looking at a smartphone, suggest a model with more storage or better features. Cross-selling, on the other hand, involves recommending complementary products that enhance the primary purchase. If a customer buys a camera, suggest lenses, memory cards, or a camera bag.

Utilize product recommendation algorithms to personalize these suggestions, and place them strategically on product pages, in the cart, and at checkout. You can increase the overall purchase amount by demonstrating the value and benefits of these additional items.

Tools like Picreel can help you implement these strategies effectively by capturing customer behavior data and delivering targeted offers in real time. Picreel’s pop-ups and overlays can further enhance your upsell and cross-sell efforts, ensuring customers see relevant suggestions at the right moment.

Also Read - Best Shopify Upsell Apps: 7 Top Choices to Boost Sales in 2024

2. Checkout Optimization

Optimizing the checkout process is crucial for minimizing cart abandonment and maximizing AOV. Ensure the checkout process is quick and straightforward, with minimal steps.

Offer multiple payment options, including credit cards, PayPal, and buy now, pay later services. Include progress indicators to show customers how close they are to completing their purchase. Additionally, implement one-click upsells or cross-sells during checkout.

For example, offer customers an accessory or an extended warranty as they complete their purchase. A smooth and efficient checkout process reduces friction and encourages customers to add more to their cart before finalizing their orders.

3. Customer Loyalty Rewards

Loyalty programs are a powerful tool for increasing AOV. Create a program that rewards customers with points for every purchase, which they can redeem for discounts or exclusive products.

Offer tiered rewards to encourage higher spending – the more customers spend, the more valuable the rewards they can earn. Promote special offers and double points events to boost purchases during slower periods. Additionally, you can provide exclusive access to sales, new product launches, and special events for loyalty program members.

By making customers feel valued and appreciated, you can encourage them to spend more on each visit.

4. Gift Cards

Gift cards are a versatile tool for increasing AOV. They attract new customers and encourage recipients to spend more than the card’s value.

Promote gift cards prominently on your site, especially during holidays and special occasions. Offer incentives for purchasing gift cards, such as a small discount on future purchases or bonus points in your loyalty program. When recipients redeem their gift cards, they often add more items to their cart, resulting in higher order values.

Additionally, gift cards can help reduce returns and exchanges, as recipients are more likely to purchase items they truly want.

5. First-Time Buyer Bonus

Offering a special bonus for first-time buyers can significantly increase AOV. To encourage them to spend more, provide a discount, free gift, or bonus points on their initial purchase.

Promote this offer through targeted ads, email marketing, and pop-ups on your website. Ensure the offer is attractive enough to compel new customers to take action. By providing an excellent first-time buying experience, you can build trust and encourage repeat purchases.

Also, collect customer information during checkout to follow up with personalized offers and promotions that keep them coming back.

6. Limited-Time Offers

Limited-time offers create a sense of urgency that drives customers to purchase quickly. Flash sales, countdown timers, and exclusive deals encourage customers to act fast and increase their order value.

Highlight these offers prominently on your homepage, product pages, and through email marketing campaigns. Offer discounts on higher-value products or bundles to entice customers to spend more.

You can also use social proof, such as showing how many people are viewing a product or how many are left in stock, to enhance the urgency. Limited-time offers boost AOV and help clear out inventory and attract new customers.

7. Gamification & Contests

Gamification and contests can engage customers and motivate them to spend more. Incorporate elements such as points, badges, and levels into your shopping experience.

For example, offer points for making purchases, writing reviews, or sharing on social media. Customers can redeem these points for discounts or exclusive products. Host contests and giveaways that require a purchase to enter, encouraging customers to buy more to increase their chances of winning.

Gamification creates a fun and interactive shopping experience, fostering customer loyalty and increasing AOV. To maintain customer interest, ensure that the rewards and incentives are appealing and achievable.

Popup maker tools can further enhance these efforts by creating engaging and interactive pop-ups that announce contests and gamification elements, encouraging customers to participate and spend more.

Also Read - 7 Best Gamified Popup Examples & Ideas

8. Live Chat & VIP Support

Providing exceptional customer service through live chat and VIP support can significantly increase AOV. Live chat allows customers to get immediate assistance, helping them make informed purchasing decisions and discover additional products they might need.

Train your support agents to offer personalized recommendations and upsell or cross-sell items based on the customer’s needs. Additionally, offer VIP support to your most loyal customers, providing them with exclusive deals, early access to sales, and dedicated account managers.

Offering personalized and attentive service can enhance the shopping experience, build customer trust, and encourage higher spending.

9. Returns & Refunds Policy

A transparent and customer-friendly returns and refunds policy can positively impact AOV. Customers who can easily return or exchange products are more likely to make larger purchases.

Offer a hassle-free returns process, including free return shipping and extended return periods. Clearly communicate your returns policy on product pages, at checkout, and in follow-up emails.

A generous returns policy builds customer confidence and reduces the perceived risk of buying higher-value items. You can encourage customers to spend more per order by fostering trust and reducing purchase anxiety.

10. A/B Testing

A/B testing is essential for identifying the most effective strategies to increase AOV. Test different elements on your website, such as product recommendations, pricing strategies, promotional offers, and checkout processes.

For example, test the impact of different upsell offers, bundle discounts, or limited-time promotions on AOV. Analyze the results to determine which variations perform best and implement the winning strategies.

Continuous A/B testing allows you to optimize your approach, ensuring that you consistently drive higher average order values. You can refine your marketing and sales tactics by making data-driven decisions and maximizing revenue growth.

Using popup maker tools like Picreel, which come with built-in A/B testing features, makes this process even more efficient. These tools allow you to easily test and analyze different pop-up variations, ensuring you deploy the most effective strategies for increasing AOV.

Increase Average Order Value With the Best Strategies

Increasing your Shopify Average Order Value (AOV) is a strategic way to boost revenue without attracting more customers.

By implementing the ten strategies outlined in this blog—such as upselling, optimizing the checkout process, leveraging customer loyalty rewards, and using tools like Picreel—you can enhance the shopping experience and encourage customers to spend more.

Consistently applying these techniques will drive higher sales and foster customer loyalty and long-term growth.

Focus on understanding your customers’ needs and preferences, and use data-driven approaches to refine your tactics, ensuring sustained success for your Shopify store.