Your average order value is the sum of your revenue divided by the amount of orders.
Why should you work on increasing your AOV? It’s an easy way to boost your revenue and is quick to set up.
Shoppers would rather pay more for the product and get free shipping, than getting the product for cheaper but paying for shipping.
If the thought of offering free shipping is making you cringe, don’t worry – this doesn’t have to cost you.
First, bump up your prices by a couple of dollars. Then, add a threshold they have to reach in order to get free shipping.
By doing these two things, you’re safeguarding yourself from the cost of shipping on the larger orders.
It’s suggested that you should aim for a threshold that’s 15-20% higher than your average order value. Anything above this is an unrealistic expectation. So if your AOV is $45, your free shipping threshold should be between $51.75 – $54.
Use the Free Shipping Bar app to promote your free shipping threshold on your Shopify store.
Cross selling is when you promote other products that go with the product they’re looking at. For example, if your shopper was looking at buying a camera, you’d suggest a macro lens, or a carry bag. Big retailers often have this shown as ‘complete the look’, or ‘often bought together’.
Cross sells can be shown on the product page or in the cart.
If you’re not sure which products to promote as cross sells, take a look at your order history. See what your customers have been purchasing.
You can also use this opportunity to upsell. That is to offer a more premium version of the product they’re looking at. Using the camera example, you could promote the model up.
The great thing about product bundles is that they’re often a positive effect for users. This is because they don’t have to go searching for the rest of the kit and save money in the process.
A starter pack that includes the basics is a great way for people who just want to get started.
When selling a bundle, make sure you point out the savings on each item. Point out how your shopper is getting a really good deal.
A loyalty programme allows your shoppers to earn points they can put towards their next order for a discount.
Loyalty programmes encourage shoppers to return to your store, spend more on your site, and demonstrate their loyalty to your store.
Zyber will implement a free shipping threshold, create cross sells, set up bundles, and start a loyalty programme for your Shopify store to increase the average amount spent by your customers
Zyber are web design specialists based in Auckland, New Zealand. Since 2009 they’ve been helping thousands of kiwis find their place online by building websites that convert. As New Zealand’s #1 Shopify Experts, there isn’t much they can’t do!