Average Order Value

Average order value is the average amount of money that users spent in one completed order. You can find out the average order value (often shortened to AOV) using that formula:

Total revenue / number of orders = AOV

Tips for Increasing Average Order Value

Since it is so hard and costly to attract new customers, brands are trying to even out the spendings on marketing by increasing the average order value. Here is what you can do to make customers spend just a little bit more;

Cross-Selling

Cross-selling means that you suggest a complementary product to the one that is already in the customer’s cart. For example, when someone wants to buy shoes, you offer care products for these shoes like cream or brushes. The complementary product is always cheaper, less significant than the initial one. 

Upselling

Upselling means that you suggest the same product but of better quality with a sale. For example, if someone buys a laptop for $500, you offer them a faster one for $600 (even if the initial price was $650). 

Volume Discounts

It is the typical buy three, get one for free. It can also be packed in the message “cut this price by 30% by buying one more”. 

Shipping Discounts

Provide buyers with free shipping if they get products on a certain total. 

Return Policy for Pricey Products

If you see a customer being uncertain about upselling, you may suggest a good return policy if they are unsatisfied with the purchase. 

Coupons

Suggest a coupon for the next shopping session if they spend a certain amount of money. 

 B2C

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