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What's holding CFOs back from digital finance initiatives


Posted by Matt Osborn - 16 December, 2019

How To Increase Average Order Value For Your eCommerce Store

If you run an eCommerce business, you may be feeling the pinch. 

The competition has become more intense while the cost of acquiring new customers is getting higher.

How can you increase your profit margin by growing your revenue without spending more on customer acquisition?

By increasing your average order value (AOV), you can generate more sales without increasing the cost.

Simply put, AOV is the average dollar amount a customer spends on a purchase at your store. When you increase the AOV, you make more money from each transaction.

In addition, higher AOV often translates into better cash flow. You can then reinvest the money into new customer acquisition (e.g., drive traffic with ads) to create a virtuous cycle. 

Here's how you can increase the average order value of your eCommerce store:

Free Shipping Threshold

Free shipping is a great way to encourage eCommerce customers to purchase more. You can offer free shipping with a minimum order amount to help increase the AOV of each transaction.

Free shipping's affect on Average order valuesource

Include a persistent element, such as a bar at the top of the website, to promote the offer (e.g., "Free shipping for orders over $xx" or "Add $xx to your cart to get free shipping!" )

You can also add a dynamic message to the shopping cart page to remind customers about the free shipping offer, e.g., "add $xx to your cart and get free shipping" and add a call-to-action to entice them to continue shopping.

Free shipping notices in eCommercesource

Volume Discount

Customers tend to buy more when they get a good deal. You can increase the AOV by offering discounts with a minimum spend, e.g., "get $xx off when you spend $xxx or more."

For B2B merchants, providing a bulk discount to customers who purchase a certain number of the same product can also encourage a higher order value.

Similiar to free shipping offer, you should promote the discount throughout the website and on your shopping cart to encourage customers to buy more and meet the minimum order amount.

Free Gift Offer

Similar to setting a free shipping threshold, you can offer a complimentary gift to customers who purchase a minimum amount.

Consider letting customers choose among a few gift options to make the offer more enticing and don't forget to highlight the value of the gifts in your promotional copy.

Past Purchases List

A list of past purchases in the account management section allows customers to quickly re-order items they have purchased in the past.

This makes it easy for them to find the items they need, streamline their shopping experience, and increase the AOV of the transactions.

Bundle Deals

You can put together product bundles to entice customers to buy more and increase the AOV. 

Use this opportunity to introduce customers to less popular or new products they may not know about but are relevant to them based on their shopping habits and preferences.

If they like the bundled items, they may continue to buy them and this will increase their future AOV as well.

Upsell And Cross-sell

Product recommendation is a great way to cross-sell or upsell to increase AOV.

With today's eCommerce and personalization technologies, you can show product suggestions that are highly relevant to your customers base on a variety of criteria, such as items in the cart, order history, browsing behavior, or preferences of customers who have similar profiles.

You can display personalized product recommendations on the homepage, category pages, product pages, shopping cart, and checkout flow to entice customers to buy more.

Include a quick view and add to cart button for product recommendations on the shopping cart or checkout pages to make sure customers don't navigate away from the user flow as they complete the transaction.

Product recommendations help AOV Average Order ValueImage source

Gift Card

Sending out a gift card helps strengthen your relationships with loyal customers or entice lapsed customers to return. Since they have a gift card at hand, they're more likely to browse your site and make a purchase.

You can also use a gift card offer to boost revenue during times when sales are seasonally low to help generate cash flow.


You can encourage customers to spend more by donating a percentage of your sales to charities.

Display a cost breakdown in the shopping cart to show shoppers how much of their purchase is benefiting charities. You can pick a seasonal theme or target a charity that's trending to encourage extra spending while generating goodwill.

Donations increase order value in ecommercesource

Payment Plans

If you're selling high-ticket items, the price can be a crucial barrier to finalizing the purchase. 

Some customers may be reluctant to put the payment on their credit cards due to financing cost. Make it easy for them by offering a no- or low-cost financing option with payment plans to encourage them to place the order.

Loyalty Program

In a study of more than 2,000 rewards programs, the majority of brands see at least a 13.71% increase in order values from rewards program members over non-program members.

By offering your customers reward-based incentives to shop at your store,  you’re giving them a reason to spend more on each transaction.

In addition, when customers redeem their rewards, they're much more likely to browse around and purchase other items.

Time-Sensitive Promotions

Urgency helps increase conversion and offering time-sensitive deals is a great way to prompt shoppers into taking action.

You can use time-sensitive deals (e.g., flash sales) to not only get customers to make a purchase decision but also to increase AOV if it's structured strategically.

For example, you can offer a discount with a minimum spend, a buy-one-get-one-free (BOGO,) a buy-one-get-one at half-price, or a conditional free accessory with purchase of the primary product.

Add a countdown timer as a persistent element to your website pages to communicate the urgency and encourage customers to take action.

Game or Contest

You can create a game or contest to incentivize customers to buy more products more often within a specific time period.

For example, for every $xx purchase customers will get one entry into a contest. You can put a reminder on the shopping cart page and show the additional amount they need to purchase to get an extra entry.

Make sure you select prizes that are relevant and appealing to your customers. You can take the opportunity to promote your bestsellers or trending products to build awareness and offer a discount to contestants who don't win the prize to drive more sales.

Corporate Accounts

When you make it quick and easy to do business with you, B2B buyers are more likely to increase their purchase volume and frequency.

Less than 10% of B2B purchases are made with credit cards so it's essential to offer a variety of payment methods that will help your customers to manage cash flow better and decrease the cost of financing.

Allow your customers to set up corporate accounts with pre-approved limits so buyers can quickly place orders with their preferred payment methods such as credit/debit cards, ACH, purchase orders, e-procurement, or net terms.

B2B eCommerce Marketing

Topics: B2B eCommerce, B2B Sales, Sales & Marketing, B2B Marketing

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