How to Increase Average Order Value of your Ecommerce Store

The goal of an online store is to make money. When you increase average order value, you get more money from each transaction making your store more beneficial. Average order value is the average dollar amount a consumer spends when placing an order on your store.

You can calculate your store’s average order value by dividing your store’s total income by the number of orders taken. This is the most effortless approach to calculate it. However, remember that there are business expenses, for example, advertising that isn’t considered in this formula.

You need to increase your average order value for a couple of reasons. First, you’ll make more profit by doing this. Second, it causes your ad spend reasonable, enabling you to continue reinvesting to grow your business. Third, you sell more products — this is, for the most part, helpful for those who carry inventory, however.

As per Volusion, the top-performing ecommerce businesses have an average order value of US $102. You may need to grow to that number if your product prices are much lower than that. However, by following the below ways you can surely increase average order value bringing you closer to the top.

Offer product discounts

While it appears to be counter-intuitive giving discounts can help increase average order value. However, when giving discounts make sure to add a minimum spend. For instance, get US $10 off when you spend US $75 or more.

Some brands likewise have volume discounts. This is the point at which certain order value brackets result in a specific discount. For instance, get US $10 off when you spend US $75, get US $20 off when you spend US $100, get US $35 off when you spend US $250 or more.

Offer a gift card

Gift cards are an incredible way to increase average order value, even when giving a small one away for free. For instance, if all products in your store are US $25 or higher, you can offer a free US $5 gift voucher for a customer to use with their next purchase. Since they have a gift voucher they’ll be bound to spend again.

However, you have to make sure that your product prices are sufficiently high that your gift card doesn’t bring about a free purchase for your customer as that would cause profit loss. Likewise, make sure that customers know they can’t utilize the gift card on the current purchase or shipping.

Lastly, having gift cards offered empowers future purchases which helps reduce future ad spend. It’s an extraordinary bonus to give customers when sales are seasonally lower however you shouldn’t offer this deal all year.

You can offer a gift card to customers directly from Builderfly. In your admin account, click on ‘Products.’ Then, go to ‘Gift cards’ and you can set your defined gift cards.

Offer a free shipping threshold

The easiest way to increase the average order value is to offer a free shipping limit. For instance, ‘free shipping on all orders over $85.’

Once you’ve determined your average order value, add 20% to it. For instance, if your average order value is $200, with the 30% increase it becomes $260. This new number is what you’ll set your free shipping threshold at. For instance, ‘free shipping on all orders over $260.

You can likewise add a notification when customers check out and their purchase doesn’t add up to the free shipping limit. By having this notification, you’ll have the option to help increase average order value.

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Builderfly is the best Ecommerce platform to build an online store for web and mobile. I work as Business Development Executive at

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