How Your AOV Plays An Important Role In Growing ECommerce Business?

Are you constantly giving away offers to attract more customers, but nothing works in your favor? Here’s what you can do. AOV or Average Order Value is one of the most important variables that’s influenced by every single one of your orders and can alter the resulting income drastically. By and large, it helps owners make informed decisions about their online business so as to maximize profits. It’s calculated as the total revenue generated divided by the number of orders.

Here are 5 Tips to Improve your AOV and therein, your Business:

1.) Offering ‘Limited Period Offers’

Who doesn’t like discounts and offers? But if the offer is there to stay only for a limited time, chances are your customer will most likely end up buying it then and there from fear of losing a profitable opportunity. A sense of urgency results in immediate action in the majority of the cases.

2.) Providing Discounts on Bulk and Minimum Purchases

Customers who shop more, in bulk, must be given a proportionate amount of discount to improve customer loyalty. Apart from this, certain discounts must be offered on minimum purchases as well, mostly for the same reason as the former. As each customer spends more and more, your AOV also increases. But make sure the discounts don’t burn down your profits.

3.) Free Shipment above AOV

Offering free shipping for purchases below your AOV is a red flag! Only after calculating the average order value should you fix an amount over which products will be shipped for free. This prompts users to make minor purchases here and there to reach the desired amount.

4.) Up-Selling Items

Implement the right up-selling strategy and see your business go up. This involves pricing and advertising better-quality or highly-preferred items only slightly costlier than the normal ones. This will make the customer end up spending more than intended.

5.)  Cross-Selling Products

This involves selling additional or related products. Preferably, offer not-so-expensive items for this purpose. Amazon has special sections (‘frequently bought together’) for the same. This increases the chances of people spending more.

While all these techniques are conducive to improving AOV, they are not complementary. Take it one at a time. For advanced help on strategies to improve e-commerce, consult Openwave Computing, the best E-Commerce Developers in Malaysia.