How to Boost Average Order Value for your eCommerce Store

How to Boost Your Average Order Value

Let’s talk about your eCommerce store’s average order value (AOV). You finally have your store up and running and the orders are coming in by the truckload! This should be an exciting time for you and your store. However, you notice that despite the orders you are pulling in, you aren’t seeing the revenue you want. So, what seems to be going wrong?

This is a common issue that affects businesses of all sizes in different industries, so there’s no need to panic! The issue stems back to the fact that your average order value is low. What does this mean?

Well, we’ve got you covered! Throughout this article, we’re going to tell you what average order value means, how you can increase it, and how you can utilize eCommerce platforms like Shopify to help you achieve your goals.

What is Average Order Value?

As the name suggests, Average Order Value (AOV) is the total revenue divided by the number of orders placed. More simply, it indicates the size of orders your customers are placing.

what is average order value

In order to increase the number of sales in your store, you must understand what AOV is. This is a term that can be overlooked by many businesses, and ultimately is the reason why they either never go anywhere or fail. We’re sure you don’t want that for your business, and neither do we!

So how do we start with AOV improvement? Let’s talk about eCommerce KPIs first.

Average Order Value KPIs

KPIs, or Key Performance Indicators, is a measurable value that determines and evaluates the success of how a company is achieving their key business objectives.There are two different types of KPIs that your business can focus on: High-level KPI’s which tend to focus on the overall performance of the business, and low-level KPI’s which focus on aspects of the business such as marketing, sales, etc.

average order value kpis

So, how does average order value fit into this? Simple, AOV is one of the most important eCommerce KPIs to focus on. The average order value is a metric system used by a business to measure the revenue over a chosen period of time.

How to Calculate Average Order Value 

To calculate your AOV, use the following formula:

Average Order Value = Revenue / Number of orders

average order value formula

That’s it!

Many businesses use this formula to calculate their average order value as it provides a more accurate measure over a longer period of time.

Understanding AOV for eCommerce

Understanding AOV for your eCommerce store is vital to your success. Average order values for eCommerce refer to the average total of all orders made with a seller over a particular period of time.

This process is important as it will help you to make those crucial decisions that will make or break your business, such as pricing, the design of your store, the display of your products, the advertisement of your products, and more. It is very important in that it helps in making crucial decisions for the business, such as pricing, the layout of the store and the amount to be invested in the advertisement of products.

How to Increase Average Order Value

Now that you understand what average order value is, it’s time to learn how you can increase your stores AOV. To do that, you need to focus on creating benchmarks for your business, as well as taking into accord some helpful tips we have for you!

Utilizing User Reviews

In today’s market, customer reviews on a product create a 74% increase in its conversion. Look at eBay and Amazon. They are pioneers in what they do, and a lot of that comes down to customer reviews. A lot of businesses don’t focus on customer reviews, and if you haven’t until now, don’t stress. However, it’s something you should start focusing on, as reviews convert product sales and decrease return rates!

Useful Link: How Leveraging Product Reviews Can Increase Sales

Ditch Discounts and Rely on the Data

Many businesses believe they have to offer customers a discount to solve their selling problems. This is not always correct, and instead, you should be looking towards your data. By studying your data, you can determine when to follow up with a customer for reviews.

Treat Your Customers like Royalty

As they say ‘the customer comes first.’ Narrow down your top customers and reward them for investing in your business time and time again. You only need to focus on 1% and offer them a gift, note, special event, etc. Show them that you appreciate their loyalty.

average order value increase sales

Set a Minimum Order Amount to Qualify for Free Shipping

One of the biggest reasons consumers report abandoning their online shopping cart is shipping costs. By setting a minimum order amount to avoid shipping fees, customers are encouraged to spend more. In fact, a study done by the University of Florida found that for stores with free shipping on orders over $75, the average order value was $64.68, compared to the average order value of $46.04 when free shipping was offered to everyone regardless of order size. By setting a minimum order amount to secure free shipping, your store should see some bigger packages heading out the door!

Useful Link: How to Retarget Shopping Cart Abandoners

Bundle Products

Consumers love to feel like they are getting a good deal. Bundling products is a great way to give customers the satisfaction of feeling like they are receiving a bargain. For example, a store might bundle a tee shirt with a ball cap. While in theory, you would generate more revenue if the two items were sold separately, customers are oftentimes likely more hesitant to buy more than one item at a time. The perceived transaction value of bundling products can increase the likelihood that they do buy both products, thus increasing the value of their order.

Useful Link: 7 Ways to Promote Your Facebook Business Page

Try out a Loyalty Program

Everyone knows how important repeat customers are for business, and what better way to encourage loyalty than a loyalty rewards program. 70% of total sales come from repeat customers, according to a study conducted at the Northwestern University Center for Retail Management. One study found consumers are 80% more likely to shop where they are rewarded for their frequent business.

So how does this translate into bigger orders? One way to leverage a rewards program to increase order size is by offering more points (or your store’s equivalent of points) for bigger orders.  Leading loyalty rewards company suggests that by extending rewards to customers who place orders 15-20% greater in value than a store’s current average order size is a great way to encourage the placement of bigger orders.

Useful Link: 5 Simple Ways to Promote Your eCommerce Brand in 2018

How eCommerce Platforms Help you

average order value shopify

The great thing about eCommerce stores is they come with some awesome features, including analytical data to help you crunch those numbers and keep a record of your average order value. Below, we’ve covered the four main eCommerce stores and how they can help you understand your average order value.

Shopify Average Order Value

Shopify has a range of features that help you measure your data, but the best is their ‘customer tracking and advanced metrics’ feature. This not only allows you to analyze your average order value, but also your lifetime value calculations, real-time analytics (e.g. customer navigation), and conversion funnel.


Magento is an eCommerce platform all about increasing average order value for all stores and has a range of features that all you to achieve that. These features include – Up-Sell (trying to sell a more expensive alternative to a product), Cross-sell (offer one or more products that complement one another), Bundles, Buy X Get Y Free, and Free Shipping.


The BigCommerce platform offers you a range of analytical data to cross-reference across a range of different business factors. However, they offer you an orders report that helps you determine and increase your average order value.


Calculating your average order value in WooCommerce is made easy for you as they offer you the awesome feature of WooReports. If you don’t have this specific feature, then WooCommerce has you covered by instructing you on how to achieve your average order value manually.

What’s Next?

After adopting any of these strategies to increase AOV, you can expect to see bigger packages being shipped out and more revenue flowing in!  

If you’re on Shopify, remember to check out Pollen on the Shopify App Store to put your advertising on Facebook and across the web on autopilot!

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Any other tips on increasing AOV?  Feel free to comment below!


One Response to “How to Boost Average Order Value for your eCommerce Store”

September 27, 2017 at 2:52 pm, Maty said:

awesome blog