When you own an online store you definitely want to increase average order value. This can seem a bit hard that is why we would like to help you with outstanding tips so you can easily succeed in this field too.
Creating your online store is a huge step in your business. You have a lot of work to do after you have launched your store, so it is not enough if you create an exceptional store, you have to put a lot of effort during the whole existence of your store. This concerns increasing average order value too.
Average Order Value
When you divide your total income by the number of orders, you get the average order value. For example, if you make $600 a day and 20 people buy things from your online store, the average order value for the day is $30.
This information can be very helpful if you want to find out how your customers shop so you can improve your online store and your marketing methods.
Why is it important to raise the average value of an order?
Increasing the average order value is important because it can be much easier than trying to find more and more new customers. So, you can easily make more money without spending a lot of money on advertising to get more customers. This is a good way to save money on strategies that would normally cost you thousands of dollars.
How can you raise the average price of an order?
There are many great things you can do to raise the average order value and make your online store more successful. We give you 12 free tips that you can use to improve your online store and raise the average order value. You don’t have to use them all, since each store is different and each customer can be reached in a different way. You can always try something new, though, to keep yourself and your customers from getting bored.
Gift Cards or Other Things
The first thing you can do to increase the average order value is to give gift cards or small gifts to customers after they buy a certain number of products from you. You can send them cards or small gifts with the things they ordered, so when they open the package, it will be a surprise. If they like what they buy, this will make them want to buy more and more, even at the same time.
You can also encourage them by telling them that if they reach a certain goal, they could get a gift card or something else. Even so, you should keep in mind that people won’t always spend a lot of money, and a lower threshold can be a great way to get a higher average order for your store.
It’s free to ship
Free shipping can also be tied to a certain amount. If your customers don’t have to pay for shipping, they will buy a little bit more. But you have to be careful about how much money you give them because they won’t spend a lot more just to get to this point; they’ll just pay for the shipping.
You can also think about raising the prices a little bit because that way you can offer free shipping (which isn’t really free because customers pay for it with the products they buy), which will make people want to buy from you.
Upselling is a very useful strategy if you have different types of products that do more things and cost more. Using different methods, it’s easy to get people to buy better products. If they want to buy something that you have a better of, let them know so they can choose that one instead.
With upselling, you can easily raise the average order value in your online store without making customers buy as much as they can just so you can make more money.
Upselling is also a good idea if a customer wants to buy a product but can only find a smaller version or one that doesn’t have the features they want. You can show them that you have the exact product they want this way.
Cross-selling isn’t the same as upselling, but some people think it is. If you want to try cross-selling, you can easily raise the average order value by giving your current customers the chance to buy more products. When someone wants to buy, say, a bike, you can sell them other things like helmets, bike pumps, water bottles, bike locks, and so on.
So, customers can choose if they want to buy more, and most of the time, they do. Also, you can raise the average order value without persuading your customers to buy a more expensive product. Instead, they just spend a little more and buy more products.
Even though this method might not work for everyone, you should try it out if your products have something in common.
As part of cross-selling, you can also start putting together packages or sets of products. You can make a good amount of money by selling different packages with a lot of products. You can even make discounts so that when a customer decides to buy a product, you can show them that it would be better to buy the whole package because they can get the given one for a lot less.
Even so, this might not be as profitable as planned because people might not want to buy more and would spend more on the one thing they were looking for. But if you make packages with products and prices that make sense, they will choose them and spend more, which could raise the average order value in your store.
Only for a short time
If you want your current customers to buy a certain product, you can send them emails about special deals that are only available for a limited time. A countdown timer would make people want to buy the product more.
Limited-time offers are different from regular discounts because they don’t happen very often. It’s also a good idea to make an offer that only lasts one or two days. This will push your customers to buy the item as soon as possible.
If you want to try this method to raise the average order value in your online store, you’ll need to make sure you get your customers’ email addresses so you can send them these offers right away.
If we’ve talked about discounts before, let’s see how this works for you. If you offer discounts, you should stress how much money they can save. This will make them want to buy the items because they will be able to save a lot of money by getting them quickly.
Customers may buy more if they see discounts as a chance to buy things they’ve been wanting for a long time. You can also set other rules for the discounts, such as a minimum purchase amount for free shipping.
But you have to be realistic about the discounts, too. You have to do some math, so it would really raise the average order value for your store.
Very Well Made
You wouldn’t even think about it, but if you want to get your customers to buy more, a great design can be a huge help. They will think that if you work hard to make your store the best it can be, you will also sell good products.
So, you need to make a good design so that your customers will trust your store right away and buy from you again and again. This will help you increase the average order value without having to constantly find new customers.
Customers like it when their needs are taken care of. If you make loyalty programs that are only for members, they will feel like it’s an honor to be a member. You can make it have different stages and link those stages to how much money they spend there.
This will make them spend more to get to a higher level with different discounts and benefits. You just need to show them what they’re missing out on right now and how easy it would be for them to get it if they joined that loyalty program.
You can also build a base of customers so you don’t have to keep looking for new ones, and you can raise the average order value in your online store.
If you want to raise the average order value, you may also need to find new customers. You need to make a great advertising program so that people can easily find your store and start buying from you. You should keep in mind that a lot of things, from the way your online store looks to the loyalty programs you offer, can affect how well your business does.
Return policy that is flexible
Your average order value can also go up if you have an easy-to-use return policy. Customers will buy more if they know they can easily send back products that don’t work. Customers will like how reliable you are and buy more from you.
People will look for stores where they can buy without worrying about spending money on something they can’t use later. A return policy that is easy to use can also be a good way to get the word out about your business.
Our last tip is to raise prices to make your online store’s average order value go up. This idea can be useful after a few months or years, since raising prices every month would cause you to lose customers. This idea mostly has to do with things that have been sold for the same price for a long time.
In this case, too, you should be reasonable, so when you raise prices, you shouldn’t add a lot of money to the total. If you have this idea, it’s also a good idea to talk to someone about it. They might give you great ideas for how to raise prices in your online store.
It can be hard to raise the average order value, but you can always look for new ideas and try them out one by one to see which one works best for your business.