Thus, online retailers who have the ability to increase average order value — AOV — should become more rewarding.
In the first quarter of 2015, the AOV for American online retailers was $78.30. Source: Statista.
In america, the AOV for a normal online retailer is about $78, based on Statista, a data and data portal. While this number will definitely vary among online retailers and business sections, it may be a standard of sorts for some small and midsize businesses.
There are lots of strategies and, finally, tactics for boosting AOV, such as the eight tips which follow.
1. Economy to Repeat Customers
Returning shoppers, who are already familiar with a given online merchant, will spend more on every purchase. Marketing to returning clients, has both a fantastic return on investment and a positive effect on AOV.
According to a Adobe study from 2012,”The ROI of Marketing to Present Online Customers,” 40 percent of online revenue comes from repeat buyers, who represent only 8 percent of ecommerce website traffic.
Returning shoppers (who make another purchase) and repeat shoppers (who create three or more purchases) send more on every trip, boosting AOV. Source: Adobe.
In the U.S., a shopper returning to make another purchase from a certain online retailer is very likely to spend three times greater than a brand new customer could, and a repeat shopper — that earns three or more purchases from the same merchant — is very likely to spend five times as much as a new customer on each order. That’s a significant boost to AOV.
2. Offer Free Shipping in a Threshold
In the USA, an estimated 40 percent of online shoppers will change their arrangement, including more items, to fulfill a nearby threshold for free shipping, based on an AOV whitepaper from analytics company RJMetrics.
Boost free shipping offers on each page of the website, in the home page to the checkout. Better yet, show a complimentary delivery reminder during the checkout procedure.
Huckberry creates a threshold-based free shipping offer on all its pages.
3. Limited-time Offers
When shoppers feel like they will miss out, they may add more items to their shopping carts, fostering AOV.
The concept is to combine both a compelling offer, like a reduction or perhaps even free delivery, with a time limitation. According to a case study from a couple of years back from Monetate, the personalization platform, western wear merchant Sheplers managed to boost top line sales 57 percent using a time-based offer.
Sheplers had a 25 percent off discount that end on November 29, 2015.
Today, Sheplers remains using the strategy. At the time of writing, the company was conducting an additional 25 percent off sale which ended November 29.
Try your own limited-time offer to improve AOV.
4. Offer Volume Discounts
For some products, volume discounts can significantly increase AOV. This approach will work best on consumable items or items that shoppers may stock up on. Think printer paper, beading supplies, or blossom oil.
The reduction can take a few forms, such as a buy x get x offer, or just a lower price when a shopper buys more of this merchandise.
Godiva, the chocolate maker, offers its business customers a volume reduction. This can save the customers money and boost Godiva’s AOV.
5. Bundle Products
When retailers package products, they are offering shoppers a discount for buying several, complementary things together, driving up AOV, whilst reducing the overhead cost associated with each product. Think sending several items in the exact same or similar box.
Walmart, for instance, is bundling laptops, cases, and drives for the holidays.
Walmart is offering a notebook bundle for the holidays.
6. Personalize Merchandising
Personalization has been one of the primary trends in ecommerce for the last couple of decades. Normally, personalized merchandising will respond on recommendation applications to indicate — upsell, cross-sell — goods based on the shopper’s behaviour, search history, and purchase history.
The idea is these personalized recommendations will encourage shoppers to bring these relevant items in their carts and, thereby, boost AOV.
Amazon makes personalized recommendations based on client activity.
7. Offer Discounts with Money Thresholds
Similar to offering free transport in a threshold, retailers may also provide a discount in a threshold.
For instance, a multichannel merchant in the northwestern United States has a company-wide AOV of just over $50. However, the company releases a dollar threshold voucher monthly.
A coupon offering shoppers $10 from any $50 or bigger purchase typically creates an AOV of greater than $80. That’s a considerable increase over the business’s regular AOV.
This deal gives shoppers an additional 25 percent off for paying at least $100.
8. Social Sharing, Proof
“Social proof may be utilised as a method of encouraging customers to purchase more by instilling confidence in their purchase decisions. Social proof includes reviews from other users, celebrity and expert endorsements, or recommendations from a buddy,” wrote the authors of the aforementioned RJMetrics AOV whitepaper.
Here the idea is to make the same type of trust that retailers get from returning or replicate shoppers, as explained in tip 1. Above, on the very first buy. To make this happen, encourage shoppers to discuss purchases and products and emphasize product reviews.
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