Increase your online sales through ecommerce. To earn more revenue, you need to increase the average order value (AOV).
If your head is racing with questions, Keep reading to get answers to your burning questions.
- What’s the average order value for ecommerce?
- How do you calculate the ecommerce AOV
- What’s the significance of ecommerce AOVs?
- How do I increase my AOV in ecommerce
What’s the average order value (AOV) for ecommerce?
The average order value (Ecommerce AOV) of a customer placing an order with you is the average amount they spend on their order.
How do you calculate the ecommerce AOV?
How can you calculate AOV? The formula below will help you to calculate AOV.
Total Orders/Total Revenue = AOV
You can use the AOV formula to plug in $9000 of revenue and 90 orders.
In this case, the ecommerce AOV is $100.
What’s the significance of ecommerce AOVs?
It’s easy to wonder why AOV calculation is so important in ecommerce.
An average order value for ecommerce can provide insight into how much customers spend on products. Take, for instance, five products that are priced at $10-20.
The average order value for your products is around $25. Keeping an eye on your AOV can help you increase your revenue.
How do I increase my AOV in ecommerce
How do you increase your AOV in ecommerce? Increase your revenue
1. A web design can be used for highlighting premium products
The first tip to increase ecommerce sales is to highlight the products that you want customers to purchase from your website. Your website design has a direct impact on how customers view your brand and see your products.
You can highlight higher-end products with Design. Use buttons and color variations to help people purchase these products.
When users are ready to convert, these design choices can make a big difference.
2. You can upsell to increase your AOV
Another way to increase your ecommerce AOV is to upsell products. This is a common way to persuade people to purchase higher-priced products and spend more.
Let’s say you have computers for sale. You might be interested to offer extended warranties or Apple Care to anyone who buys a MacBook. This is an excellent example of upselling to increase order value.
Upselling allows you to get prospects to add more products to their carts, and increase your AOV to your online business.
3. This is a way of increasing product sales
Cross-selling can help you increase your AOV in Ecommerce. This is where you sell products related to your product to increase sales.
4. No shipping charges for orders over a dollar amount
Free shipping on orders over a certain amount is a great way to increase your ecommerce AOV.
5. Offer bundle deals
Bundle sales can increase your AOV in retail.
6. For more expensive items, offer payment plans
If you are selling more expensive products, you might think about offering payment plans. They can make smaller, more affordable payments.
Don’t lose out on larger sales because of high prices. Encourage more people to buy through a payment plan.
Kobe Digital can help you increase your AOV in ecommerce
An AOV for ecommerce is a key metric. It can help you understand your audience better and adjust your marketing strategy to improve sales. We have marketing professionals that can help you create a strategy to increase the average order value.
We are experts in increasing sales. To speak with a strategist about our ecommerce services, call us.