Increasing Average Order Value: 7 Effective Strategies for Online Stores

August 15, 2023


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Within the dynamic realm of e-commerce, the success of an online store hinges on an array of pivotal factors. A standout amongst these is the Average Order Value (AOV), a metric that wields considerable influence. Beyond its numerical facade, AOV holds the potential to not only amplify revenue but also optimize marketing strategies and curtail customer acquisition expenses. In this article, we delve deep into the core of AOV, decipher its profound implications, and unveil seven actionable strategies primed to elevate its standing.

What is the Average Order Value?

The average order value (AOV) is a crucial e-commerce and retail metric used to analyze the average amount of money a customer spends in a single transaction. It provides insights into customer purchasing behavior and overall revenue generation. The determination and calculation of AOV involve several steps and considerations:

Data Collection: Gather transactional data from your sales records or e-commerce platform. This data should include the total value of each order and the number of orders made during a specific period.

Time Period: Choose a specific time period for which you want to calculate the AOV. This could be a day, week, month, quarter, or year. The time period selection should align with your business's goals and reporting cycle.

Segmentation: Consider segmenting your data to analyze AOV for different customer groups, product categories, marketing campaigns, or geographic regions. This can provide deeper insights into how various factors influence purchasing behavior.

How to calculat AOV?

To calculate the average order value, you need to sum up the total value of all orders and then divide that sum by the total number of orders. The formula is as follows:

The formula for calculating AOV

Calculation Example

Let's say your online store generated $10,000 in revenue from 100 orders during a given period. The AOV would be:

An example of AOV calculation

Importance of Increasing Average Order Value

Maximizing the Average Order Value (AOV) can yield numerous substantial advantages for your business. Below, we outline the primary benefits associated with this strategic approach:

Amplified Revenue Generation: Elevating AOV directly translates to heightened revenue. By motivating customers to spend more per transaction, your overall sales and revenue escalate, all without necessitating the acquisition of fresh clientele.

Enhanced Profit Margins: A boosted AOV empowers you to potentially offset fixed costs and operational expenditures more effectively. Consequently, this optimization can result in improved profit margins for each sale.

Decreased Customer Acquisition Expenses: The process of acquiring new customers often incurs substantial costs related to marketing and advertising. Elevating AOV means that your existing customer base contributes more significantly to revenue, consequently lessening the continual need for new customer acquisition to foster business growth.

Augmented Customer Lifetime Value (CLTV): Customers who consistently engage in higher-value purchases tend to exhibit a higher CLTV. Consequently, the revenue generated from their repeat transactions over their entire engagement with your business increases significantly.

Streamlined Inventory Management: Greater customer expenditure per transaction enables more efficient inventory management. This streamlining of operations can lead to diminished storage costs, minimized overstocking, and heightened inventory turnover.

Capitalization on Economies of Scale: As order values surge, you might gain enhanced negotiation leverage with suppliers, potentially yielding cost savings on your end.

Improved Data Analytics: Elevated AOV often generates more comprehensive and detailed transaction data. This data can offer profound insights into customer behavior, preferences, and trends, enabling more astute business decisions.

Enhanced Return on Marketing Investment (ROI): If your marketing endeavors result in heightened AOV, the ROI for your marketing campaigns experiences a notable enhancement. This translates to improved outcomes with the same marketing outlay.

Positive Perceptions and Brand Image: A business that consistently delivers value and promotes higher expenditure tends to be perceived as premium and customer-centric. This, in turn, elevates your brand's image.

Ways to Increase the Average Order Value

Volume Discounts

Offering volume discounts can encourage customers to buy in larger quantities, driving up the average order value. Ensure the discount tiers are clearly communicated, and the potential savings are highlighted. You can use tiered pricing structures such as "Buy 2, Get 1 at 50% Off" or "Buy 3 or more for 20% Off Each." Display these discounts prominently on product pages and during the checkout process to remind customers of the potential savings.

MBC Bundle Products App Volume Discount Widget Preview

Reviews from Other Customers

Customer reviews serve as social proof and influence purchase decisions. Implement a review system that allows customers to leave detailed feedback, ratings, and even images or videos of the products they've purchased. Encourage customers to leave reviews by offering a small discount or reward. Showcase these reviews prominently on product pages to build trust and show potential customers real-world experiences with the products.

Free Shipping

Free shipping is a powerful psychological incentive that can drive customers to spend more. Consider offering free shipping on orders that reach a specific minimum spend. Clearly display the free shipping threshold on your website and in marketing materials. Use persuasive language like "Spend $50 for Free Shipping" to motivate customers to add more items to their carts to qualify for the offer.

Cross Selling

Utilize smart algorithms or manual curation to suggest cross-sell items on product pages. These items should genuinely enhance the customer's experience with the main product. Provide clear explanations for why the suggested items are relevant, and showcase any bundle discounts if applicable. Use visually appealing graphics and persuasive copy to entice customers to add these complementary products to their cart.

Loyalty Program

Design a loyalty program that rewards customers for their continued engagement with your brand. Offer points for every purchase, and clearly explain how points can be earned and redeemed. Provide various tiers of rewards to incentivize customers to reach higher spending levels. Send personalized emails to loyalty program members highlighting their points balance, exclusive offers, and upcoming rewards.


Create bundles that provide value to customers by combining related products at a discounted price. Clearly communicate the savings customers will get by purchasing the bundle compared to buying individual items separately. Use appealing visuals and descriptions to highlight the convenience and value of purchasing the bundle. Consider offering both pre-made bundles and the option for customers to create their own custom bundles.

Bundles Example

Live Support Chat in Store

Implement a live chat feature that offers real-time assistance to customers while they're shopping. Train your support team to not only address customer inquiries but also suggest additional products based on the customer's needs and preferences. Use proactive chat invitations to engage customers who might be hesitant or have questions about certain products. Additionally, integrate chatbots to handle common queries and provide quick recommendations.

An example of a successful AOV increase

Icarus Kite & Foil Center, based in Belgium (Europe), is making a dynamic mark as a swiftly growing store. Their energetic top team is firmly devoted to equipping adventure-seekers with the finest gear for riding the waves. For newcomers venturing into water sports, choosing the right equipment holds paramount importance. Many opt for comprehensive sets, commonly known as package deals. Addressing their customers' needs, they placed a high priority on providing clear visual representations of these bundles in the store.

Thanks to the exclusive implementation of the Bundle strategy, Icarus Kite & Foil Center has witnessed remarkable results. Within a mere 6 months, their Average Order Value (AOV) increased by a substantial 24% surge.


In conclusion, the Average Order Value is a key performance indicator that can significantly impact an online store's success. By implementing the strategies discussed in this article - bulk discounts, customer reviews, free shipping, cross-selling, loyalty programs, bundles, and live support chat - online store owners can effectively increase AOV and unlock greater revenue potential.

If you're looking to apply these strategies to your online store and need expert assistance, feel free to book a call with our experienced managers. We're here to help you optimize your store for maximum profitability.

Meet Author.
Andrey Gadashevich

In 2010, Andrey founded MakeBeCool initially as a website development agency, but a discovery of the e-commerce world led to a complete retraining. With a newfound passion, he started collecting brand stories and case studies to empower e-commerce success. Beyond work, Andrey is a Lego Technic collector, a passionate snowboarder, runner, and fitness enthusiast. His active lifestyle extends to family time, where he shares his hobbies with his daughters.

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