Shopify 4 min read
14 Jul 2020

7 Simple And Effective Ways To Increase The Average Order Value For Your Shopify Store

7 Simple And Effective Ways To Increase The Average Order Value For Your Shopify Store

Off the top of your head, what do you think the average person spends when they check out your Shopify store? This sounds like a trivial issue. After all, the significant number at the end of the month shows that you’ve made a profit.

However, knowing what the average amount your customers spend per order is valuable. Why? Because you can then figure out how to increase this figure. So, the bigger this figure, the bigger the profits.

This figure is what is known as the average order value. In other words, divide your total income for the store by the number of orders for that month. Et voila, you have arrived at the average order value.

This increases your profits. Furthermore, it allows you to wisely spend when it comes to your Shopify marketing campaigns. So, how can you increase your store’s average order value? We’ve compiled a few pointers.

Read on. Struggling to make your Shopify store more valuable? Debutify has just the solution for you. Click here to get started.

How Can You Ramp Up Your Shopify Store’s Average Order Value?

As we’ve seen, increasing your average order value can add a couple of zeros to your store’s bottom line.

Additionally, you can infuse just the right amount of funds into your Shopify marketing strategy and not a cent more. For many store owners, increasing their revenue involves adding to the list of products that they offer.

Alternatively, you might want to expand your marketing strategies.  However, this needn’t be the case. It will take a lot of your resources and time. Time and effort that you would have spent on another aspect of your business.

You don’t even need to try to get in new customers to increase the store’s value. New customers are always welcome, though ;) Market to your current customers, and you’ll still see an improvement. So, how can you make this work?

Set A Threshold For Discounts

Many Shopify store owners offer discounts to bring in new customers. They also use this tactic to bring back previous customers. This Shopify marketing tactic works.

No one can deny that fact. However, you’re also leaving money on the table when you have blanket discounts. How? Well, you probably have some small-price items or those with a small margin.

If you add a discount, you’re either decreasing this margin or wiping it out entirely. Fixing this is quite easy. Set a minimum point where discounts kick.

For example, you can offer a 20 percent discount for orders that exceed $100. Online consumers can’t resist free/discounted items. Your orders will start to increase as buyers try to get those discounts.

This same tactic is effective when applied to free shipping offers. Provide free shipping only when the order exceeds a certain amount.

Use Time-Sensitive Offers

As we’ve ascertained, buyers will always look out for deals so that they don’t spend too much. One way you can ensure that customers take up these offers is by putting a time limit on them.

To increase the order value, make the discount or special offer only viable when the customer buys products that exceed a particular amount.

However, this has a short-lived effect on your average order value. Customers won’t have another incentive to buy in bulk when the period elapses. Nevertheless, this is an excellent way to increase your order value. You can scatter these kinds of offers at different times of the year.

Reward Loyal Customers

Customer loyalty programs are a great way to reward customers who have already bought your products before.

They help you to build personal relationships with customers.  Additionally, you retain existing customers. These very customers also become advocates for your brand – a plus for your Shopify marketing efforts.

Another lesser-known advantage of rewarding loyal customers is that it can increase the average order value of your Shopify store. How do the two even fit in the same picture? Well, you can provide exclusive rewards in the loyalty program for repeat big spenders.

You can further add levels to this program, increasing the benefits as the amount spent in an order goes up. So, by tweaking your loyalty program like this, you increase your average order value.

Make Use Of Cross-Selling

What’s the most straightforward way of increasing the value of an order? Adding more items to the cart. Simple. Now, how can you get the customer to add more stuff to their cart?

The solution is equally simple. When the customer has chosen the item they want, you can show them other products that complement the one that they’ve chosen.

Complementary products are usually those that go well together. Many Shopify stores group them as “Frequently bought together.” Take this example. You’re a fashion brand, and summer is your biggest sales season.

A customer has added a pair of sunglasses to their cart. But just before she clears the cart, you show a cute wide-brim sun hat that goes well with the glasses. She’ll be more inclined to add the hat to her cart so that she can complete the order.

Upsell Your Products

In the previous method, you increased the order value of your Shopify store by encouraging the buyer to add more items to their cart. This differs from that.

Instead of adding more items, you get the customer to buy a more expensive item. Sounds complicated, doesn’t it? After all, customers are always looking for discounts and offers that get them to spend less. Enter upselling. This involves offering customers the opportunity to buy a higher-quality version of the same item.

When they have chosen an item, you can prompt them to upgrade and buy a better product. This tactic is usually useful when you present it to the customer at the check-out page. Imagine you’re selling bags. A customer has chosen a simple bag to carry his laptop.

As they’re checking out, you present a bag with dedicated pouches for carrying the laptop and other gadgets like tablets and headphones. The customer is more likely to buy this bag despite the higher price. After all, they’re getting value for their money.

Bundle Products Together

Earlier, we talked about presenting different options of complementary products to buyers. Cross-selling is a proven method of increasing order value.

You can also increase the order value by bundling products together. This differs from cross-selling. How? Buying the bundle is cheaper than buying each of the products individually. A customer would have just bought one item, and that’s it.

They’d also shy away from adding a related item because, ultimately, it’d be too expensive. Picture this, though. A customer comes across a bundle with products they’re interested in.

The average cost of each item in the package is less than what it would be to buy it separately. They would opt for this instead. The order value increases because they haven’t bought a single item. The customer has instead spent more on a bundle because they find it has better value for money.

Take Advantage Of Customers’ Browsing History

Making sales on your Shopify store is all about capturing the customer’s attention. And you can use this very concept to increase your average order value. When customers log back onto your store, show them a few items they’ve seen on their previous visits.

They were of interest then and they might be of interest now. Showing them these items catches their attention and prompts them to view them again. This time around, they might take their interest further and buy the product.

You can also tie in some of the previous methods to further increase the order value. For example, you might show one of the products that they have viewed several times in the past.

Alongside that product, you can show products that other customers usually buy with it. Alternatively, show bundles of products similar to that they viewed before. This use of a customer’s history on your site provides you with an opportunity to increase your average value order.

Moving Forward

Knowing your average order value enables you to know just how well your Shopify store is faring. These simple steps allow you to increase this figure and set your books in black.

As you’re implementing these changes, don’t forget to test every one of them. This ensures that you’re getting a return on this investment you’re putting in with these Shopify marketing tactics.

Are you ready to increase the value of orders in your online store? Get in touch with Debutify to optimize your store to rake in more profits.

Ricky Hayes

Ricky Hayes

Ricky Hayes is the CEO at Debutify. He is a passionate entrepreneur running multiple businesses, marketing agencies, and mentoring programs.

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