In part 2 of 2 of our look at increasing average order value (AOV), we’re going to look at some of the best techniques to help accomplish this. In part 1, we explained what AOV is and why it’s important to measure this and continually striving to increase it. Let’s get right into some practical ways of doing so.
Note that many of these techniques are not specific to online stores, and have existed in one form or another in all types of stores for hundreds of years. You’ve no doubt encountered many of these on other e-commerce sites or in physical stores.
Also important to note is that virtually all of these techniques are possible to implement as part of our Website-as-a-Service program. Our mission is to ensure you grow, because our success is directly tied to yours.
1. Free Shipping
Free shipping with a minimum order amount is a proven way to increase your store’s average order value (AOV). It plays into the psychology of the consumer, who often feels more incentivized to spend a bit extra if it means avoiding shipping costs, which most understand aren’t getting any lower. This subtle nudge can turn a $50 order into a $75 one, pushing customers to add more items to their cart to meet that magic threshold. In the eyes of many shoppers, it feels like getting more value—free shipping, after all, feels like a reward.
Setting the right threshold is key to making this strategy work for both your business and your customers. You want to set an amount that encourages customers to add more to their cart without being unrealistic or unattainable. To determine the optimal threshold, start by looking at your current average order value. For example, if your average order is around $60, setting the free shipping minimum at $75 encourages customers to add an extra product or two without feeling like it’s out of reach. Testing different thresholds can help you find the sweet spot that maximizes both conversions and profitability. You are tracking your average order value, aren’t you?
To make this strategy effective, clearly display the offer across your site—from the homepage to the cart page. Highlight the free shipping offer prominently on your homepage, in the cart, and even in product pages to keep the incentive top-of-mind. If they are a few dollars below the threshold, remind them about the offer and suggest products that will nudge them over the limit. On all e-commerce sites we design, we include a progress bar that shows customers how close they are to reaching free shipping eligibility in the shopping cart—adding a sense of motivation as they shop.
The free shipping option can (and should) be the least costly option. You don’t need to specify the shipping method being used for free shipping, giving you the flexibility to select the most cost-effective carrier for the order. It also doesn’t preclude you from offering other, non-free, more premium shipping options at checkout. You’d be surprised at how many customers will still select a paid shipping method to get their order quicker, even after they’ve increased their order size to the free shipping option.
You don’t want to get caught paying tons of money in shipping costs just to appease potential new customers with unrealistic expectations. But, to win higher value business, offering free shipping with a set threshold is an idea to consider. Once customers spend more than that, they’ll feel liberated to spend even more, so your average order may just continue to increase.
2. Social Proof
It might not seem like a direct strategy to increase AOV, but consider your higher-priced products. These products often face more resistance from buyers, yet they have the potential to significantly boost your average order size. By incorporating effective social proof, such as product reviews, testimonials, and screenshots, you can reassure hesitant shoppers that the product is worth the investment and that price shouldn’t be a barrier.
Most customers don’t base their decision solely on price. Positive social proof reassures customers, making them feel confident about investing in higher-priced items. By providing social proof, you can encourage more customers to say yes and ultimately increase their spending.
3. Live Chat
Sometimes customers are hesitant to buy because they have questions, uncertainties, or other confusions holding them back that could be resolved if they could just talk to someone. But talking to someone is difficult, especially online since you probably don’t have staff for full phone support (which is quite costly).
Live chat lets you answer customer questions instantly, clearing up doubts and removing barriers to purchase. So live chat can have a direct, positive impact on your conversion rates, but it can also increase your average order value, because the customer might be considering buying four items, but they have questions about two of them.
Without live chat, they’ll buy the products they were already planning to get, but might drop other ones from their cart because they have questions and don’t want the hassle with sending an email and waiting for a reply. Even if you make it easy to contact you via phone it’s also likely after business hours and their call will go unanswered. They may not have a long distance plan (and toll-free numbers are a cost you likely don’t want), plus if your customers are Gen-Z, Millenials or younger that probably don’t want to talk on the phone anyway.
With live chat, if you can address those questions right when the customer is ready to buy, they might end up buying more products. Strike when the iron is hot.
We recommend implementing live chat on all e-commerce websites. It’s only about $20/month (and there are even some great free options), and you can respond to enquiring on your smartphone anywhere you happen to be. Talk to us if you want to explore this for your e-commerce website.
4. Upsells and Cross-Sells
Upselling and Cross-Selling are two of the most effective and proven strategies to boost the average order value. All growing and established eCommerce stores, even the big giants like Amazon, use these techniques.
Upselling refers to a strategy that helps to display and sell higher-priced products that are similar to low-priced products that a buyer is exploring. Upselling is simply talking someone into buying the more expensive, flashier version of a product.
Shoppers who are looking at a product are showing a high level of interest. Take advantage of that interest by explaining the benefits of a higher-priced option. Even if the customer sticks with the less expensive choice, you can then use email marketing to gradually nurture them toward an upgrade.
Cross-selling is a strategy where you recommend complementary or related products to customers based on the product currently being viewed. For example, suggesting a phone case or a screen protector when a customer is about to buy a smartphone. These suggestions are typically made on product pages, in the cart, or during checkout, aiming to enhance the customer’s purchase while increasing the total order value. They are often displayed under the heading “you may also be interested in” or “frequently bought together”.
In 2006, Jeff Bezos revealed that 35% of Amazon sales were a direct result of cross-sells. Cross-selling leverages behavioural momentum: once a customer decides to buy a product, they are already in a purchasing mindset. Well-timed cross-sells capitalize on this momentum, making it easier to encourage additional purchases.
5. Upsizing
“Upsizing” is a type of upselling strategy where customers are encouraged to purchase a larger, more feature-rich, or higher-capacity version of the product they’re already considering. It’s commonly seen in industries like fast food (“would you like to supersize your fries?”), but it applies equally well to e-commerce. For example, if a customer is about to purchase a 500g bag of coffee beans, you might suggest they upgrade to a 1kg bag at a discounted per-unit price.
The key to upsizing lies in demonstrating added value to the customer. It’s not just about offering something bigger or more expensive—it’s about helping the customer feel they’re making a smarter purchase. Whether it’s saving money by buying in bulk, accessing additional features, or receiving a better version of a product, upsizing enhances the perceived value of their purchase while increasing your average order value (AOV).
Upsizing boosts AOV by encouraging customers to spend a bit more while perceiving greater value in their purchase. This strategy works because customers are already engaged in the buying process, making them more receptive to suggestions. For example, offering a higher-capacity external battery for a slightly higher price not only boosts revenue but also ensures the customer feels prepared for longer use.
Upsizing can also tap into customer psychology, as people often want to “future-proof” their purchase. For instance, suggesting a premium version of software with extended features can help customers avoid needing to upgrade later. Additionally, upsizing creates opportunities to improve profit margins, as larger products or premium versions often have better cost-to-price ratios. When done effectively, upsizing enhances customer satisfaction by delivering more value while benefiting your business’s bottom line.
6. Order Bumps (Targeted Product Recommendations)
Some customers will visit your e-commerce website looking for a specific product, without browsing for any other items. If most shoppers simply search for a specific product, add it to their cart, and quickly check out, then you’ll have a low AOV.
Order bumps can increase these small orders by including product recommendations in the shopping cart and on checkout pages, based on what is already in their cart. For instance, clothing retailers can show products that will complete an outfit based on what the customer is already buying. They are similar to cross-sells, differing mainly in where they are placed (in the cart or on the checkout page, as opposed to on the product page).
Order bumps can be “smarter” because they take into consideration everything in the cart in their recommendation. For example, you wouldn’t waste space recommending a product complimentary to one product if it is already in the cart, or it might be more impactful to recommend a product when multiple a combination of multiple other products are in the cart.
7. Buy X, Get Y
The “Buy X, Get Y” strategy is a promotional technique where customers receive an additional item (Y) after purchasing a certain quantity or spending a specified amount (X). For example, a clothing store might offer “Buy 2 shirts, get the 3rd free,” or “Spend $50, get a $10 gift card.” This strategy encourages customers to spend more per transaction by offering an enticing reward for reaching a specific threshold.
This technique works because it creates a win-win situation: customers perceive they are getting more value for their money, while businesses benefit from increased Average Order Value (AOV). The additional incentive often nudges customers to purchase items they may not have initially intended to buy, increasing overall revenue and potentially introducing them to products they’ll repurchase in the future.
To implement this strategy successfully, ensure the reward (Y) is compelling and relevant to your audience. For example, offering a free or discounted complementary product works well, such as a free laptop bag with the purchase of a laptop. Alternatively, providing store credit or gift cards as the reward encourages repeat visits, further enhancing customer lifetime value.
The effectiveness of this strategy also lies in strategically setting thresholds. The required spend (X) should be slightly above your current AOV to encourage higher spending. For example, if your average order is $60, setting a “Spend $75, get a free gift” promotion can nudge customers to add more to their cart. Additionally, create urgency by making the offer time-limited, tapping into the fear of missing out (FOMO) and increasing conversions. By combining thoughtful thresholds, compelling rewards, and a sense of urgency, the “Buy X, Get Y” strategy becomes a powerful tool for boosting AOV and customer satisfaction.
8. Incentives for Higher Order Amounts
One effective way to increase AOV is by encouraging customers to spend more while making them feel like they’re getting a better deal. This can be achieved through incentives such as free shipping, special discounts, or free gifts tied to minimum order thresholds.
For instance, you might offer free shipping on orders over $100 or a free travel mug for purchases exceeding $75. Alternatively, consider a “buy more, save more” promotion with progressive discounts, such as:
- 10% off orders over $50
- 20% off orders over $100
- 25% off orders over $175
To implement this strategy effectively, start by analyzing your current sales data to determine your average order value. Set your threshold slightly above this amount—typically 15-20% higher—and select a reward that will entice customers to reach that target. For example, if your current AOV is $50, you could offer a $5 discount or a free gift for orders over $60.
Incentives don’t need to be percentage discounts alone. Flat-dollar discounts work well because they provide a clear, tangible reward: “Spend $60 or more and get $5 off.” While you might worry about cutting into profits, most customers won’t stop spending at exactly $60. They’re likely to exceed the threshold, and the discount remains fixed regardless of how much more they spend. Examples of perks to boost AOV include free gifts, contest entries, VIP program access, or loyalty rewards—all of which add perceived value and encourage larger purchases..
9. Customer Loyalty Programs
A customer loyalty program can significantly increase Average Order Value (AOV) by incentivizing customers to spend more to earn rewards. When customers know that their purchases contribute to earning points, discounts, or exclusive perks, they are often motivated to add more to their cart to reach the next reward threshold. For example, a program might offer 1 point per dollar spent, with a reward unlocked at 500 points. Customers are more likely to round up their purchase totals or upgrade to higher-priced items to maximize their rewards, effectively boosting AOV with each transaction.
In addition to increasing AOV, loyalty programs foster strong customer relationships and improve retention. By offering rewards tailored to customer preferences—such as early access to new products, personalized discounts, or VIP experiences—businesses show appreciation for their customers, creating a sense of exclusivity and connection. Loyal customers tend to return more often and spend more over time, increasing their Customer Lifetime Value (CLV). Moreover, the trust and engagement built through a loyalty program can turn customers into brand advocates, further driving revenue through word-of-mouth referrals. This dual benefit of increasing AOV while strengthening customer loyalty makes loyalty programs a powerful tool for sustainable business growth.
10. Product Bundles/Packages
According to Optimove, around 50% of customers buy only a single item per order.
Product bundles or package offers are an effective strategy for increasing Average Order Value (AOV) because they encourage customers to purchase multiple items in one transaction by offering them at a discounted price compared to buying each product individually. Bundles make it easy for customers to see the value of getting more for slightly less, which often feels like a smart financial decision. For example, a skincare brand might bundle a cleanser, moisturizer, and sunscreen at a reduced price compared to buying them separately, making the package both appealing and practical.
A product bundle can contain the same products with multiple variations. Or else a main product with multiple supplementary products. With an attractive discount, potential buyers will find a reason to spend more and save more.
This strategy works because it leverages customer psychology and convenience. Bundles reduce decision fatigue by simplifying the shopping process, allowing customers to purchase a complete solution in one step. When you offer a bundle, customers don’t have to do the research that goes into building an entire package to complete the set that they’re putting together.
They also appeal to the customer’s desire to save money or time, creating a win-win scenario for both the shopper and the business. For the seller, product bundles not only increase AOV but can also help move inventory by pairing slower-selling items with popular ones. Additionally, bundles introduce customers to complementary products they might not have considered otherwise, increasing the chances of repeat purchases and enhancing long-term loyalty.
You’re also offering a package of items that doesn’t have a clearly comparable price anywhere else. And few people will go and look up your prices for the eight items in your bundle. They’ll just appreciate the simple convenience of ordering the collection of complementary products.
You sell more items. You ship them all at once. The customer pays more money than they otherwise would have and is happy with the great deal and good service represented in the bundle.
11. Time-Sensitive Offers
FOMO (fear of missing out) is a real thing. It’s why we all stay up past our collective bedtimes, scrolling through Instagram and Facebook. This is one of the easiest and most time-tested strategies for influencing customer behaviour.
Time-sensitive offers are a powerful strategy for increasing Average Order Value (AOV) because they create a sense of urgency that motivates customers to act quickly. These offers leverage the psychological principle of scarcity—when people believe an opportunity is limited, they are more likely to take immediate action. By setting a clear deadline for an enticing promotion, such as “Spend $75 in the next 24 hours and receive a free gift,” businesses can encourage customers to add more items to their carts to reach the threshold before time runs out.
Many e-commerce stores use this strategy with techniques like stock scarcity or countdown timers. One example is limited-time discounts during flash sales, where customers must meet a minimum spend to unlock a discount (e.g., “15% off orders over $100 for the next 48 hours”). Another example is the use of countdown timers on cart pages, reminding customers how long they have to complete their order to qualify for free shipping or a special bonus. Retailers also deploy exclusive seasonal deals—like offering a bundled holiday gift set at a discounted price for one weekend only—to capitalize on increased purchasing intent during specific times of the year.
Additionally, time-sensitive offers can include “last-chance” promotions, such as displaying low-stock alerts for popular items with accompanying messages like, “Only 3 left—order now to avoid missing out.” When implemented effectively, these strategies not only boost AOV but also enhance the shopping experience by giving customers compelling reasons to complete their purchase quickly and maximize their value.
12. Volume Discounts
Volume discounting, or tiered pricing, is a strategy designed to encourage bulk purchases by offering customers increasingly better deals as they buy larger quantities of a product. This technique is particularly effective for businesses selling items that are frequently bought in multiples or consumed regularly, such as office supplies, food items, or skincare products. For example, a store might offer 10% off when a customer buys two items, 15% off for three, and 20% off for five or more. These incremental savings motivate customers to purchase more than they initially planned, thereby increasing the average order value.
13. Payment Plans
If you sell expensive items like electric scooters, it might be a good idea to offer financing options. Many customers will be eager to buy a product but unable to afford it. Similarly, customers who want the top-end “deluxe” model may instead opt for the more budget-friendly model. The option of paying in small monthly payments can make the high-ticket items more appealing.
The offer of $162 per month is seemingly more appealing than $4,700.
Various “Buy now, pay later” (BNPL) services allow customers to buy higher-priced products without having to pay for them all at once. Typically, customers can break payments into four instalments. The services offering BNPL typically cover the full cost of the item up front. So you get paid the full amount at the point of purchase, and the customer then pays back the BNPL provider in four payments.
Keep in mind that using these services do come at a higher cost for you, typically in the range of 6% of the order (versus 2.9% for processing a credit card). It’s possible to mitigate this extra cost fully or partially by applying a surcharge at checkout if someone chooses to pay with a BNPL service.
Common BNPL services include Klarna (which allows for 4 equal payments every 6 weeks) and Affirm (which provides monthly instalments for up to 36 months). There are several others, and all have pros and cons.
14. Increasing Prices
A final option for increasing your AOV is also the simplest strategy to implement: just raise your prices.
For example, if you sell 1,000 widgets per month at $20 and raise the price by just $1 (5%) to $21. You’ve just added $1,000 to your total monthly revenue without making any operational changes. All of that additional revenue translates directly into (gross) profit.
But what about losing customers due to the price hike? The key lies in balancing price increases against potential customer loss. For instance, consider the streaming industry. Streaming services often test pricing strategies, adjusting between ad-supported and ad-free models. When they raise their subscription fees, some users unsubscribe. However, the overall revenue can still grow. Imagine a company charging $7 per month with 125 million customers, generating $875 million monthly. If they increase the price to $8 and lose 10 million subscribers, they now have 115 million customers but earn $920 million monthly—a $45 million increase, despite fewer subscribers.
Your e-commerce business can apply the same principle. Even on a smaller scale, you can justify higher prices if the net result is increased revenue, even with a slight drop in customer volume. Finding the right price point may take testing and analysis, but the rewards can be significant for your bottom line.
When determining how much to increase product prices, it’s important to consider several factors to ensure the change benefits your business without alienating too many customers. Here are some key considerations:
Understand Your Customer Base
Assess how price-sensitive your target audience is. Ensure your pricing aligns with the perceived value of your products. Customers are more likely to accept a price increase if they believe they’re getting high-quality or exclusive products in return.
Evaluate Competitor Pricing
Research your competitors’ prices to understand your market positioning. If you’re already priced higher than competitors, an increase may deter more customers than expected. Conversely, if your products are priced significantly lower, there may be room for a reasonable increase without backlash.
Analyze Sales Data
Review historical sales data to identify trends. For example, determine whether sales volume remains steady during small price increases or if it fluctuates. Use this data to predict the impact of different price points on overall revenue.
Consider Product Demand
For high-demand or unique products, you may have more flexibility to raise prices without impacting sales. Conversely, for commoditized or widely available products, a price increase could push customers toward competitors.
Assess Impact on Profit Margins
Calculate how much of the price increase will contribute to profit after accounting for costs. A slight price increase on high-margin products may significantly boost profitability, while for low-margin products it may not make enough difference to profitability to overcome customer dissatisfaction.
Monitor Customer Behaviour
Track key metrics like conversion rates, customer retention, and cart abandonment after implementing price changes. These insights will help you fine-tune your pricing strategy for optimal results.
Conclusion
Increasing your e-commerce website’s Average Order Value (AOV) is one of the most effective ways to maximize revenue without relying solely on acquiring new customers. By leveraging strategies like free shipping thresholds, time-sensitive offers, product bundles, and loyalty programs, you can encourage customers to spend more while creating a positive shopping experience. These tactics not only boost AOV but also enhance customer satisfaction, build stronger relationships, and improve long-term profitability.
Whether you’re experimenting with upsells, cross-sells, or volume discounts, the key is to understand your customers and tailor your approach to their preferences. Implementing even a few of these strategies can lead to significant results for your business. Start optimizing your AOV today, and watch as your sales—and customer loyalty—reach new heights.
