After working hard for a long time to run your dropshipping business, you finally got steady traffic to your store and a high conversion rate. How do you get sales and profits to go up by a lot in this situation? If so, it would be smart to improve AOV.
What is AOV? Why is it important?
Average Order Value (AOV) is the value of a single order, as the name suggests. For example, if the total revenue is $3,000 and the total number of orders is 100, the average order value (AOV) would be $30 ($3,000 divided by 100 orders). This means that on average, each customer spends $30 when they place an order.
The average order value (AOV) shows how much you can make from each customer. A higher AOV can not only make up for the cost of advertising, but it can also increase the profit margin on each purchase. This means that raising AOV is a very effective way to offer a wide range of discounts as part of a promotion to boost sales and make more money.
Ways to raise AOV and increase sales
Set a minimum number of items you need to buy to get free shipping, free gifts, or a discount.
This is a method that is often used to raise AOV. But because your different items come from different places, their inventory addresses are also different. If you send these packages out separately, you may have to pay a lot for shipping, which will cut into your profits.
When it comes to free gifts, not everyone will like the same gift, which makes “Buy N products and get gifts for free” much less appealing. And if you offer too many discounts, customers might start to doubt the value of your goods, which could hurt your stores’ reputation.
Create an order minimum for free delivery
Setting up a pop-up window to remind a customer that the amount of goods in his shopping cart is close to the free shipping threshold is a great way to boost sales. But the consumption threshold makes it easy for customers to dislike a business.
After a customer pays for an order, offer discounted add-ons or cross-sells.
When a customer buys a pair of sports shoes, you can suggest discounted items like sports suits or sports socks and point out that the discount is because the customer bought the sports shoes.
In this case, the buyer wants to buy a certain item, but he or she will think about whether or not to buy other items being promoted. This makes the conversion process and time of engagement take longer, which could lead to a loss of conversions. Also, if the price of the product or service you’re promoting is too high for your customers to buy, it may make them angry.
Offer discounts on bundles or buy-one-get-one deals
Bundling highly relevant products together or selling them through “Buy N Get N” offers can not only save customers time and make it easier for them to make decisions, but it can also help them understand and use the products better. For example, customers will be more open to the sale of lawnmowers and lawnmower parts together than to the sale of lawnmowers alone.
If a customer wants to buy something and is ready to do so, they will come to your store to look for bundle and BOGO products. They will find that a single item in a bundle or BOGO costs less than if it were bought separately. Even if a single order costs a lot or includes shipping fees, customers won’t be turned off if the items in a bundle offer have a lot in common. This will make it easier to increase conversions.
Bundle/BOGO offers are popular, so dropship-empire have gotten a lot of comments and requests about them. In order to do this, dropship-empire has made it possible to make both Bundle and BOGO offers.
What does dropship-empire do to help you sell bundles?
If you sell a bag for $20, you can use dropship-empire bundle mapping to make a bundle of a bag and a purse that sells for $25. This will increase the AOV of a single order by $5.
Here are the steps you need to take in dropship-empire to bundle your products:
- You can add a new product to your Shopify store by going to it.
- Go to the My Products section of your dropship-empire dashboard and click the IMPORT SHOPIFY PRODUCTS button.
- Find the product you just made and click the icon on the right to add it to dropship-empire.
- Go to the My Products page to find the product, and on the product card, click the Mapping Page button.
- To turn on the Bundle mapping, go to the pop-up window and click on the Bundle tab. Then click on the Status button.
- Click on Import supplier and then select the variants you want to sell.
- After you have mapped one variant, you can do the same thing again to map other variants.
- Don’t forget to Save when you’re done with the bundle mapping.
- You can now sell one bag and one purse together in one offer.
You can now sell one bag and one purse together in one offer. – dropship-empire.
BOGO mapping works the same way.