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6 simple ways to increase average order value in e-commerce

Increasing conversions in ecommerce is great, but increasing your average order value is in many ways, better. Here are six simple ways to boost cart size.

It’s every e-commerce professional’s aim to increase conversions – but what about increasing revenue by putting equal focus on how to increase average order value? With smart up-selling and cross-selling, you multiply your opportunities to make an impact on the bottom line.

1. Use the cart to inform cross-sell and upsell

When it comes to cross-sell and upsell, you don’t really need to have complex product recommendation algorithms to make it work. You’ve got all the information you need right there in the cart: you know what’s in it and you know what that’s worth. Domino's Pizza case study

So you can take the value of the cart and make an offer based on it, just like Domino’s Pizza did. They offered different incentives depending on the value of the visitor’s basket, helping them get to conversion. Read the full story here.

But as well as knowing what it’s worth, you also know what’s in that cart – and you can make recommendations and offer incentives that map to those products. More on this later.

2. Limit your recommendations to keep them relevant

Analysis paralysis is very real – it’s the digital version of standing in front of the fro-yo counter that has fifty flavours while the sales assistant is looking at you and waiting. And waiting. And then you walk away because it’s just too much and you’d rather have just chosen between five things.HMV case study

It’s the same online; offer five flavours, not fifty, if you want your visitor to really engage with what you’re offering to the point where they might click ‘add to cart’. Too many recommendations can also give the sense that these aren’t particularly tailored; a small selection feels more bespoke. As we always say here, ‘more personal, more powerful’.

Entertainment retailer HMV took exactly this approach when they ran a campaign to increase their AOV by nearly 10%. By targeting their visitors to film and TV pages with an offer focused on a single product, their proposition was clear and easy to understand (read the whole story here).

3. Bundle!

The best way of cross-selling is to imply that there’s a natural synergy between the product that the customer is interested in and the one that you want them to be engaged with. Example of bundling e-commerce offersThat could be as simple as a matching handbag with a pair of shoes, additional filters with a coffee machine or replacement bulbs with a new lamp.

If your margins allow, there’s of course the option of giving an additional incentive for customers who choose to package together their purchase with more items, such as a discount.

4. Foreground your spend-threshold offers

Almost every ecommerce website has one: a spend threshold after which delivery is free, discounted or at least reduced. Considering that issues with the cost of delivery are a key reason for shoppers abandoning their carts, it’s important to bring your existing promotions into the spotlight so that they don’t get missed.Ben Sherman case study

Ben Sherman did just that; their shipping policy offered free delivery on orders over $200, so they made sure that this was highlighted when shoppers got close to that threshold. And it helped them generate over £400 in additional revenue every day.

5. Be dynamic about it!

We’ll sound like a broken record here, but the more personal your approach, the more powerful it becomes. That’s why we’ll always advocate not just showing that your customer is close to qualifying for an offer, but showing them just how close they are. As in the dollars and cents amount that they need to spend in order to reach that incentive.Fragrance Shop case study

The Fragrance Shop took this approach, showing how much a visitor needed to spend before receiving money off, and it led to an over 9% increase in order value.

Want to try it for yourself? It’s easier than you think with Dynamic Promotions on the Yieldify Conversion Platform – check out our little video to see what your site could do with it.

6. Remember to work hard for the conversion itself

Alongside the work you’re doing to increase AOV, remember that you’ve still got to make sure that customer checks out with their now-heavier cart. Your standard conversion rate optimisation tactics will still apply, such as:

  • Showing when offers are qualified for (not just when they’re just out of reach)
  • Creating a sense of urgency
  • Showing social proof
  • Building trust with your customer
  • Making your experience feel exclusive
  • Making your checkout process smooth

And that’s it!

Boosting cart value doesn’t have to be tough as long as you remember the golden rules of being relevant and being timely. Offer your visitors a simple choice that they’re likely to want and you’ll give yourself the best shot at securing the best possible conversion.

Interested in finding out more about increasing average order value? Check out these blog posts:

10 proven ways to raise average order values in fashion e-commerce

The 6 quickest ways to increase average order values in online retail