Most strategies to increase AOV in eCommerce start with bringing in revenue from return customers by upselling or cross-selling.
However, the real danger here is that you may be bringing down your LTV. Hereâs why:
- While existing customers do bring in more revenueâthey have a certain average purchasing frequency (depending on your productâs shelf value)
- You may end up cutting that period, which of course brings down the Lifetime from Lifetime Value (LTV)
This is why we've devised 26 strategies to increase AOV without losing out on LTV.Â
Letâs go!
26 Successful Ways To Increase AOV in eCommerce (+ Examples)
1. Display and highlight a popular choice
A popular choice shows social proof and helps build FOMOâthat in itself can help increase your average order value.Â
Note the âbuy now goes fastâ microcopy on the product image:
Quick Tip: Add best-sellers on your exit-intent popupâdonât forget to highlight added urgency with microcopy.
2. Subtly recommend similar products
By similar, we mean products within the same category or functionality.Â
You can also recommend by visual similarity and price range.Â
Hereâs how Net-a-Porter uses this upsell strategy:
Quick Tip: you can further personalize your product recommendations by recommending new collections relevant to the product searches the shopper has made.
Check this out: eCommerce Product Recommendations: Strategies, Examples, Do's/Don'ts
3. Personalize recommendations by behavior
91% of consumers prefer to buy from brands that remember them.Â
All you would need is to track past buying or product browsing behavior, and provide them a section, as Birkenstock does:
However, if you don't have the data, just yet, pair products by criteria such as colors or intended usageâfor example, PSD recommends products by designs:
Quick Tip: If your product recommendations are low in stock, amp up the FOMO by displaying a simple âlow-stockâ or âselling fastâ microcopy.Â
4. Use a mini-cart page for upselling
Popups are an effective strategy to capture the visitorâs attention.
However, you can use a pop-up to create a mini cart pageâit helps handle exit intent and provide relevant recommendations:
Quick Tip: Mini-cart pages can also help improve UX and conversions, as well (if they're kept non-intrusive).
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In case of exit-intent, remember to down-sell with a time-limited element, along with relevant (but, higher priced) product options.Â
Consider messaging like âYour Cart Will Expire in XX Hours XX Minsâ (use price anchoring for better effect).
Also Read: Cart Abandonment Pop-Up: 14 Amazing Examples (That Actually Work)
5. Offer a smart discount on the cart page
A smart discount on your cart page, such as Buy One, Get One Free (BOGO), can work wonders for your average order value.Â
Note how Terra Origin repackages the BOGO offer as âAdd 1 more item to the cart to get 1 freeâ:
Tips to increase your average order value of the cart:
- Remember that your goal is to sell a better quantity at a price thatâs above your AOV
- Thatâs why, you should employ a pricing strategy for better AOV and LTV (as well as stock clearance)
- Mark-up the price of a higher-priced/higher-margin/slow-selling product to its MSRPâthis helps you accommodate a lower-priced product, and offer a BOGO with ease (which increases your AOV)
- Apply the principle of a volume discount to your BOGO (which means, customers have to have spent a certain amount to qualify for the BOGO)
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âUse the Rule of 100 coined by Jonah Berger, a percentage discount for items priced below $100 works better while a dollar-off discount works well for items priced above $100. This combined with this slashed rate of $19.50 to $10 compels the users to buy.
We recommend you to check out: How To Improve Average Order Value On Shopify: 22 Brilliant Ideas
6. Inform them theyâve qualified for upgradesÂ
While itâs a good practice to keep your checkout flow as distraction-free as possible, you should make offers they canât refuse with smart value upgrades such as a free subscription, extended warranty, product insurance, or gifting.
Note how Myprotein offers an upgrade to a higher quantity on its cart page along with a free trial to a subscription:
Want to know more about why this works?Â
We recommend reading: 11 Next-Level Reciprocity Marketing Examples (eCommerce)Â
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Another great way to increase your AOV (as well as value) is to offer a service such as the Haul Away from Wayfair (which helps customers throw away their old mattresses):
7. Show a discounted upsell after order completion on the thank-you page
Can you increase your AOV after an order ends? Yesâby influencing the next purchase (with exclusive offers or more).
Note this example of cross-selling on a thank-you page:
Quick Tip: You can include a tiered-referral offer to help them bring in new customers (and give better discounts), such as âGive $X and Get $X: they get $X when they spend $X, and you get $X off on every order forever.âÂ
Also Read: Deliver An Amazing Post Purchase Experience: 17 Ideas (& Examples)
8. Implement the âDecoy Pricingâ strategy
Decoy Pricing refers to presenting a higher-priced product as a form of persuasion alongside a low-priced product by projecting it as inferior.
Built Athletics uses decoy pricing with panache within their product page to increase their AOV. It recommends three products with 3 different pricing and flavor options:
Quick Tip: Recommend products with high product affinity (and ensure theyâre close in terms of price by ±15%)âcheck how Built Athletics does it â.
9. Nudge through push â live chat
By this, weâre specifically talking about in-website push widgets, such as this:
These nudges can help achieve a lot of goals, including sending out:Â
- 1:1 support
- Product recommendationsÂ
- Humanize your brand
âQuick Tip: Try implementing this technique on your checkout flowâuse non-intrusive pop-ups like âwhat would you like for your better half?â
Do check out: 20 Experts Share Proven eCommerce Growth Strategies (2024)
10. Combine your upsell with cross-selling
Gymshark combines cross-sell and upsell when selling its apparel.Â
It sells a t-shirt and socks, effectively driving persuasion without causing choice paralysis:
Why is it effective?
An online buyer might be compelled to buy the shirt costing ÂŁ25 instead of one in the cart or the stock. Either way, it is a win-win situation because it increases the average order value.Â
Quick Tip: Don't offer more than two upsell/cross-sell productsâensure the cart value doesnât increase rapidly. This helps improve customer experience (CX) (and avoid choice paralysis).Â
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Upselling and cross-selling work, if done in a controlled manner to avoid loss aversion.
For example, offer a limited-time discount on a top-of-the-line product (say âdonât miss out on this limited time offerâitâs not coming back, like everâ).
11. Offer a side-by-side comparison of similar products Â
One of the simplest ways to upsell is to offer a side-by-side comparison of similar products.
It lets the shopper get a full-scope of what they can get out of a higher-priced product.
The ease of comparison of value and pricing removes the need to move back and forth between product pages. This helps visualize the higher value additionâand eventually leads to better conversions.
Quick Tip: Instead of comparing competitor products, pit your top-of-the-line product against the bottom-of-the-line product. This helps you subtly recommend your higher-priced product range in one go.
12. Help with a shoppable look
This cross-selling technique is a fantastic way to increase your AOV, without hurting your LTV.Â
Hereâs why: it includes a down-sell as well as a subtle upsell.Â
Just ensure: each product recommendation on offer shouldn't go above 30% of the price of the current product being viewed.
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This helps because the cart value feels attainableâonly 30% more than the current product being viewed.
You may also like: CTA Button Examples (+ 50 Call to Action Phrases)
13. Offer a minimum dollar threshold for free shipping
Did you know that 9 out of 10 customers find free shipping as the greatest incentive for shopping online?Â
How do you apply this:
- Provide a minimum dollar thresholdâand encourage customers to add more products to the cart to avail of free shipping
- This way you sell more as well as save on shipping costs by fulfilling orders of more products together
Note how Decathlon offers free shipping by giving a subtle message for customers to buy an item for an X amount to avail of free shipping:
Quick Tip: You donât need to upsell on the checkout page if you have done it on the cart page.
14. Help your customers âexperienceâ products first
No, we arenât talking about free trials or samplesârather, you can offer a paid sample as Clare does:
Quick Tip: This strategy works wonders for hardware storesâconsider letting users build their own bundle of paid trial products for a discounted price (along with a solid return policy).
15. Include a powerful upsell with your welcome email
Most brands do send out discounts within their welcome emailsâhowever, what they forget to do is add product recommendations.
Check out this example below, they stay true to the message while presenting a soft sale pitch.
Quick Tip: Include an extra step on your signup form that asks users about their preferences (or goals).
For example, âWhich generation do you most relate with?ââbase your welcome mail on the option chosen.
We Recommend Reading:Â
15 Incredible Examples of Welcome Emails (eCommerce)
18 Welcome Email Best Practices To Drive More Sales
eCommerce Upsell Emails: High-converting Examples(+Templates)
16. Upsell via SMS (with consent)
Whether itâs email, web push, Facebook Messenger, or even SMS, use your common communication channels to upsell products, as BKR does:
Quick Tip: Donât just restrict them to notify shoppers of the ongoing deals and discounts.
For example, if a customer purchased a planner from you last monthâuse consented channels to reach out to themâintroduce your new range of weekly or monthly planners or productivity kits.
Also Read: Conversational Commerce: 21 Amazing Real-World Examples (eCommerce Brands)
17. Perfect the above-the-fold on your homepage
Other than displaying popular categories, using your homepage is a fantastic way to increase your AOV.Â
All you need to do is perfect your above-the-fold, as Glasses USA does:
Tips: How to increase AOV from your homepage:
- Display the best (and transparent) pricing on your homepageânote how each featured product includes prices of lenses
- Tune your microcopy to ease the conversion as well as help them spend more on each order (BNPL payment, FSA/HSA fund encashment)
- Make sure you alleviate the risk as well with your returns policy or a money-back guarantee
âQuick Tip: Treat your homepage like an extended landing pageâthe goals should be helping increase conversions and helping users find your top products.
You might also like: 15 Ways To Get The Most Out Of Social Proof (eCommerce)
18. Build better category pages
The next natural step is to rethink how you display products on your category pages.Â
Hereâs an example of a well-functioning category page that helps increase AOV (as well as aid product discovery):
Hereâs what you can do to increase your AOV from category pages:Â
- Show a featured product along with bestsellers
- Offer product categories based on popularity, offers, product usage, or customer needs such as height, gender, etc.Â
- Add filters on the same attributes
Quick Tip: Add microcopy that signals trust or opportunity, like âBest-sellersâ or âSave $Xâ to help customers gravitate towards better-performing products. Â
You May Also Like: Build high-converting category pages (13 ideas + great examples)
19. Perfect your navigationÂ
After your homepage, your nav menu is often the first place to discover productsâwhich is why you should always add:
- Top sellers
- Relevant offers
- Top product categories
Note how Pure Encapsulations does it:
Quick Tip: Use your notification bar as well, to highlight your best offers.
Also Read: 18 Brilliant Ways To Convert First-Time Visitors Into Buyers (eCommerce)
20. Tier up the rewards (with flexible payment)
The reward bias makes us chase a lot of things in life.
So, does a tiered discount or loyalty pointsâhere's an example of it in action:
Hereâs how you can use your loyalty rewards to increase your AOV:
- Offer flexible payment of some sort to bring in higher cart value (think BNPL payment options)
- Ensure that you offer a free-shipping threshold to hit your AOV targets constantly
- Remind them of your returns policy to further aid higher-value purchases
- Gamify the loyalty program (for example, âshop $X in x days, and get 5X loyalty pointsâoffer ends in x daysâ)
Quick Tip: Segment your loyalty program base by spending capacityâtarget low-spenders to encourage them to get more of the program.
Also Read: 14 eCommerce Loyalty Programs Backed By Science (Examples)
21. Include social proof within your recommendationsÂ
88% of consumers trust product reviews and ratings as much as personal recommendations. While itâs impossible to highlight every single review on the product recommendations, you can display product ratings:
â
Quick Tip: Offer a single review along with the product display imagesâalternatively, you can also use a pop-up âquick-viewâ to show a mini-product detail page.Â
Also Read: 19 Creative Ways to Display eCommerce Products (w/ Brilliant Examples).
22. Offer smart bundlesÂ
Wondering what a smart product bundle looks likeâtake a look at this example of a product bundle from Thuma:
Hereâs how you can create a smart bundle to increase AOV:
- Find products that go together with your product and create variations that make sense (Thuma has taken a simple bed frame to build a complete bed)
- Ensure your product details like product image carousels and descriptions change with the variant chosen
- Explain why the bundle makes sense to deal with the bundling bias (not being able to use the full bundle)âshow the practicality of the purchase or the savings
Quick Tip: You can also offer a variety of rewards like an increase in the quantity, a discount, or a freebie.
For example, if a visitor is browsing through basic, single-tone t-shirtsâshow them a pack of 3 with the message âlet us cover all your weekday lounge needsâ (and a discount to save on buying the 3 together).
Also Read: 15 Product Bundling Examples That Convert (& 9 Proven Ideas)
23. Set up retargeting and remarketing ads to promote upsell offers
Another effective channel to upsell products to your customers is your retargeting and remarketing ads.
Based on what a customer purchases or browses on your website, you can display product upsells through these channels to introduce them to something better (and more âvalue for moneyâ).
You'll love: Brilliant eCommerce Retargeting (and Remarketing) Examples
24. Segment your customers based on behavior for better personalization
Personalization isnât just remembering what they viewed. Itâs more about you tuning into their vibes.Â
Itâs worth remembering: AOV = value across the average order (not every shopper).
Most orders display similar purchase behavior and triggersâthus, you should provide the right things to the right segment. For example:
- Reward your best customers with perks they want (like exclusive access, control over product designs, etc.)
- Target low-spenders who donât spend much or are infrequent customers (use flash sales, cross-sells, or bundles)
Remember: 36% of your customers actually expect this personalization (and you definitely donât want your top spenders spending less).
Quick Tip: Ensure all users coming in from SMS and email get directly logged-in to their accounts.
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Actively start implementing upselling techniques, when youâve given enough time to the visitor to find the product theyâre looking for and understand the value it brings to them.
Remember to tone down your upsells, to avoid being pushy.Â
Want to know how top eCommerce brands use personalization to sell more?Â
Also Read: 25 Brilliant Examples of eCommerce Personalization
25. Downselling - a small sale is still a sale
Downselling is another sales technique used by eCommerce businesses to ensure every visitor turns into a shopper by offering them a more budget-friendly alternative. Sometimes, it simply includes offering more convenient buying options to customers after they reject or decline an upsell offer you made.
The image below will help you visualize the difference between these three strategies:
â
26. Increase value with co-creation
This strategy helps you get zero returns and charge a premium (all while increasing your AOV). Letting a customer co-create your product, creates exclusivity and personalization like never beforeâcheck how Stanley does it:
Quick Tip: Increase the appeal even further (and add more value), by improving your packaging to add a handwritten note.Â
Also Read: Luxury eCommerce Product Page - 20 Best Examples
People Also Ask
1. How to calculate average order value in eCommerce?
Average Order Value refers to the average revenue spent by a customer every time they buy from an online store.Â
Use this formula to calculate AOV.Â
AOV = Total Revenue/Total Orders * 100Â
Letâs say your eCommerce store earned $30,000 in a month and the total orders received were 5000.
AOV = 30,000/5000*100Â
AOV = $600Â
Your AOV is $600
Wondering why AOVâs important in eCommerce? Average Order Value is a KPI that helps you understand customer behaviorâwhich helps you determine how much your customers are spending on every orderâwhich provides a strong reference for planning your pricing and digital marketing strategies.Â
2. What's a good average order value by industry?Â
While there is no one âgoodâ average order value, the global average order value is $138. However, the definition of a good AOV changes by:
a) Industry-wise Product Pricing: Higher priced products tend to have a higher AOV while lower priced ones have a lower AOV
b) Global Trends: Some industries will experience a surge in AOV during times of global events (such as wars or Olympic Games) and seasonality
c) Geography: Socio-geographical factors such as weather patterns, buying power, and the uncertainty index affect your AOV. For example, APAC (emerging markets comprising India, China, Japan, and others) are highly price-sensitive markets and have an erratic AOV
c) Device-used: A shocking number of eCommerce stores arenât usable on mobileâstart with mobile UX to increase average order on mobile
3. What is a good upsell percentage for AOV?
A âgoodâ upsell percentage is subjective to where you upsell. Generally, 16% of the eCommerce brands have 1-4% upsells on the cart page. On product pages, 15% of brands have 1-2% upsell rates and 5% have an upsell percentage of 3-4%.Â
To calculate the Upsell conversion rate, use the following formula:Â
Upsell Conversion Rate = No. of upsells/No. Of times offered * 100
4. Is the average order value inclusive of discounts?
Remember that itâs about your average order (not your customer). Thus, if your AOV comes down to $57, it will factor in the discount the customer is enjoying in their every order.
Keep in mind that your AOV calculation should also factor in the price of gifts and loyalty points.
If youâre struggling with calculating the right amount of discount for your AOV, here are the steps:
- Set a target AOV (factor fixed costs, competitor pricing, margin, etc)
- Calculate the current AOV (inclusive of discounts and gifts)
- Apply the formula âTarget Discount=[ (Target AOV - Current AOV)/Target AOV] *100â
- Add the âTarget AOVâ + âTarget Discountâ + âShipping/Packaging Costsâ to create the âThreshold Priceâ (if youâve already included shipping in step 1, donât add it again)
- Run through all calculations with the mix effect in mind (to ensure you donât affect your profitability)
5. What are some ways to increase AOV?
1. Display and highlight a popular choice
2. Subtly recommend similar products
3. Personalize recommendations by behavior
4. Use a mini-cart page for upselling
5. Offer a smart discount on the cart page
6. Inform them theyâve qualified for upgrades
7. Show a discounted upsell after order completion on the thank-you page
8. Implement the âDecoy Pricingâ strategy
9. Nudge through push â live chat
10. Combine your upsell with cross-selling
11. Offer a side-by-side comparison of similar products
12. Help with a shoppable look
13. Offer a minimum dollar threshold for free shipping
14. Help your customers âexperienceâ products first
15. Include a powerful upsell with your welcome email
16. Upsell via SMS (with consent)
17. Perfect the above-the-fold on your homepage
18. Build better category pages
19. Perfect your navigation
20. Tier up the rewards (with flexible payment)
21. Include social proof within your recommendations
22. Offer smart bundles
23. Set up retargeting and remarketing ads to promote upsell offers
24. Segment your customers based on behavior for better personalization
25. Downselling - a small sale is still a sale
26. Increase value with co-creation
Also Read: How to Increase AOV on Shopify: 27 Upselling Ideas