How to increase an average order value?

By Roman Berezhnoi September 7, 2021 158 views

How to increase an average order value?

Sometimes it makes sense to increase an average order value instead of increasing the count of orders. In other words, if you can increase the amount of money you make per order, you don’t need to make so many sales to generate the same profit. It allows you to raise profit with high-ROI tactics. F5 Studio’s ecommerce development experts are glad to share these tactics with you.

Definition of Average Order

The Average Value Order explains the gross revenue. In the Average Value Order, the business eliminates the expenses. The formulae of the Average Order Value stands;

Gross sales divided by the count of orders = average order value. 

If there is a $1000 sale in a day obtained from 10 orders, the average order value is $100. This formula applies when the products have a similar range, but some products have different price tags in a business. And in this case, this  Average Value Order formula is not suitable. For instance, if you sell products at the same range and then sell boutiques, luxury, and customized products at the higher range, at the end of the day, you need to calculate the  Average Value Order for each line of product. Selling different products requires different tactics, and thus maintaining a different  Average Value Order for each category of product is essential. This process helps in estimating the accuracy of efforts. 

Importance of Average Order Value

The main objective of every business is to generate as much revenue as possible. When a business is able to provide returns that are much higher than the expenses and investment, it business is considered to be successful. Therefore, you can also say the higher the average order value in a business, the higher are the revenues. There is a definite formula for each strategy in the business field. A business is successful when it can generate new customers and also retains the older ones. 

Faster profitability: A business requires investment that can enhance the business debts. a higher Average Value Order will generate profits faster and pay off debts.

Greater profits: Assuming your expenses remain fairly constant, every dollar you increase your average order value by is basically pure profit.

High inventory turnover. Selling more inventory faster is always good for an ecommerce business.

What are the tactics to enhance average order value?

A laptop screen with home page of an ecommerce site that sells used tech
Neumorphic ecommerce site. Se the presentation of F5 Studio’s work

Add a few cents or dollars to the price

One of the best but most overlooked methods to increase the Average Order Value of the business. For example, if you enhance the price with a certain margin, it will add extra revenue per sale of that product. 

But, a business needs to inspect and check the products whose price can be increased. People don’t get thrilled to see a price hike. You need loyal customers who buy similar products. 

Let’s consider that you sell 100 products per month at $30 each. This sums up to $3000 revenue at the end of the month. Raise the price to $32.95. After noticing the price hike, some customers will leave, and thus the sale will come down to 95 units per month. But summing this up, you still have $3130.25.Thus your  Average Value Order enhances. 

Try to offer add-ons

Try add-ons on the product that helps to enhance the sale by a few dollars. Show the add-ons on the checkout page. Standalone products can have add-ons like discount gift cards and wrapping.  

Also, try providing customization, upgrades, preference in color, which enhance the business morality and attract the customers. This needs some little investment.

The current Average Value Order is $35, and the product sold per month is 100; the business generates $3500. Now increase the Average Value Order by $2; your business will have $3700. Thus, you have $200 extra by adding $2 in Average Value Order. 


Another important tactic to enhance Average Value Order is upsell. There are some techniques to upsell the products. 

They are:

  • Having a higher-quality, luxurious version of a product. 
  • Upselling by providing discount offers on the greeting page.
  • Membership upselling, which includes a monthly subscription to enjoy unique perks.

Trying to upsell when customers are shopping and in the checkout section. These upsells will help in enhancing the Average Value Order at the end of the month. 

Sell personalized collections

With the help of a customizable collection, you are empowering the customers to design their products according to their preferences. When customers choose their preferences, it makes them happy and also provides extra bucks to the business. 

Try providing this offer to the customers who have a subscription to your business, and thus you can generate revenue from both subscription and customizable products. 

Product bundles

These products are related to each other, and thus people like to have them in bundles. Suppose selling books, health supplements, outdoor equipment, and materials that have related products. 

Offer these products in bundles, and sell them at a relatively lower price than the price of the products when customers buy them individually. These make customers think that they are getting a great deal on the product. 

You can also provide personalized boxes with the product bundles, where customers can choose their preferable items.

Free-shipping over a definite purchase

Shipping products takes a considerable amount of money, and neither customers nor the sellers like to pay it. Customers often turn down a website when they need to pay for the extra shipping charge for products. Therefore, it is best to set an amount bar. If customers purchase products above this specific price level, the shipping will be free. 

Suppose a product costs $60, and the shipping price is $10. Thus you need to set $75 as the base margin and push the customer to spend a few extra bucks to reach above the $75 margin. 

Provide payment options

Try providing different payment options for exclusive products that are in the high range. PayPal provides a buy now, pay later option to the customers for a definite purchase. This helps to make EMI or Equated Monthly Installments. Customers pay the price of the products through EMIs for a specific period of time. Businesses charge a few extra bucks on EMI plans, and thus they can enjoy the profit. A flexible payment option makes quick outflow of products and thus enhances the Average Value Order. 

Offer Discounts on High Range Purchase

Just as free shipping, you need to offer exclusive discounts and perks over certain high purchases. This helps to increase the Average Order Value. Offering discounts helps to enhance the morality of the business and thus attracts new customers as well.

A customer will readily buy a $20 product after spending $70 on other purchases to avail of a product worth $50. This makes both customer and seller happy. 

You can also try offering a $40 discount over a $600 purchase, and this will make things attractive. 

Selling kits

Selling products in the form of kits helps to add AOV at the end of the month. The kits help to make the final product, and thus the customer must buy all the required products. 

Also, add the customization method in this kit, which will help your business have enhanced revenues as you provide materials beyond basic structure.


You can raise the profits of your ecommerce site without adding a single extra customer when you increase the average order value of each sale. 

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