5 min read

5 Tips to Increase AOV for Shopify Stores

Shopify
Ecommerce

Launched

December, 2024

5 Tips to Increase AOV for Shopify Stores

Table of contents

Introduction

Average Order Value (AOV) is a crucial metric for any Shopify store. It indicates the average amount customers spend per transaction, and increasing this figure can have some pretty neat effects.

AOV can significantly boost revenue without raising Customer Acquisition Costs (CAC), allowing you to reinvest the extra profits back into your business.

While it may sound challenging, there are strategic ways to nudge shoppers into spending just a little more. Let’s dive into five actionable tips to help you increase your AOV.

1. Master the Art of Cross-Selling

Cross-selling is one of the simplest yet most effective ways to increase AOV. A report by McKinsey concluded that cross-selling can increase sales by 20% and profits by 30% - that’s a lot of bang for your buck.

The idea is to recommend complementary products to customers based on what they are already buying. For example, if someone is purchasing a new gaming console, why not suggest a few games?

The key to successful cross-selling lies in relevance. Hyper personalisation is the name of the game now in e-commerce - shoppers will quickly get annoyed if you bombard them with multiple irrelevant items.

The same point applies when trying to bring customers back to buy more through SMS and email marketing apps like Wizpop - if your efforts aren’t personalised, you may even hurt your store’s brand and reputation.

However, when customers feel like your recommendations are generally helpful, they are more likely to add extra items to their cart.

Shopify apps like Frequently Bought Together can help automate this process, making it seamless for both you and your shoppers.

2. Bundle Products for Value

Who doesn't love a good deal? Product bundles give shoppers the perception of value, encouraging them to spend more while feeling like they’re saving money. Think of it like this: instead of selling a shampoo or conditioner separately, offer a bundle with both and offer a small discount.

Bundles work especially well for products that naturally go together. They are effective because:

They simplify decision-making for customers.
They subtly encourage customers to purchase items they might not have considered otherwise.
It’s cost-effective and easy to implement.

Shopify makes it easy to set up product bundles with apps like Bundler, but you may want to do it manually to ensure that products go together naturally and pricing feels like a win for customers.

3. Offer Free Shipping Thresholds

Free shipping thresholds are a classic strategy to boost AOV - and for good reason. Customers love free shipping, and they’re often willing to spend more to unlock it.

For example, you might offer free shipping on orders over £40, nudging customers with a £30 cart to add another item rather than paying shipping fees. To make this work:

Set your threshold slightly above your current AOV. If your average order value is £45, set free shipping at £60 to encourage higher spending.
Use Shopify’s cart notifications to let customers know how close they are to unlocking free shipping. This visual cue often motivates them to add “just one more thing”.

As is usually the case, there are a handful of Shopify apps that can make offering free shipping thresholds easier. Apps like Hextom do most of the heavy lifting for you, allowing you to sit back and enjoy increased AOV.

There are also apps like shipping apps like Wizship, which is more of an increased protection upsell (more on this later) but is still a great example of increasing AOV at shipping.

4. Incorporate Upselling Techniques

Upselling is about convincing customers to upgrade their purchases. Instead of just selling a standard coffee maker, why not offer customers the opportunity to upgrade to a deluxe model?

Upselling is extraordinarily effective. According to a Q2 HubSpot Sales Trends Report in 2022, around 15% of companies generate 6%-15% of their revenue from upselling.

To implement upselling effectively:

Highlight the added value of the more expensive option. Use phrases like “best value” or “most popular” to draw attention.
Ensure the upgrade is genuinely worth the additional cost. Customers should feel like they are getting a deal.

The key is not to push customers too hard. You don’t want to overwhelm customers with endless pop-ups or options. A well-placed suggestion right at the right time is all it takes.

5. Leverage Limited-Time Offers & Discounts

Creating urgency is a tried-and-true method to get customers to act fast (and spend more). Limited-time offers, flash sales, or exclusive discounts can encourage customers to add more items to their carts while the deals last.

Here’s how to do it:

Promote time-sensitive discounts for adding additional items to their purchase. For example, “Add a second item now and get 25% off!”.
Use countdown timers on your Shopify store to create a sense of urgency.

Remember, the goal isn't to cheapen your brand by running constant sales but to strategically use urgency to nudge customers into buying more during their visit.

Why Focus on AOV?

Now that we know how to increase AOV, it’s time to go more in-depth about why it is so beneficial. As mentioned earlier, Increasing AOV doesn't only boost your revenue; it also maximises the value of your existing customer base.

Customer acquisition costs are usually high, so making the most of each transaction is essential. Plus, when customers feel like they are getting extra value from their purchases, it enhances their shopping experience. This can lead to better retention, improved brand perception, and repeat sales.

By implementing measures to improve AOV, you can create a win-win situation: your customers feel like they’re getting more for their money, and you see higher profits without needing to chase new buyers constantly.

Final Thoughts

Running a successful Shopify store is about more than just driving traffic - it’s about maximising the value (and thereby profits) for every customer. Increasing your AOV is one of the smartest ways to grow your revenue while keeping customer acquisition costs in check.

Start by experimenting with one or two strategies from this list, and measure the results. You don’t want to go overboard. Over time, you’ll find the perfect combination that resonates with your audience. Before you know it, those small tweaks will add up to big wins for your Shopify business.