Effective ways for boosting Average Order Value

Average order value (AOV) is a performance indicator that tracks the average amount spent by a customer each time he places an order on a website online store or mobile app. 

This important metric is highly useful to online retailers to understand customer behaviour and buying habits. AOV can be tracked for any time period daily or weekly, but most eCommerce retailers track it on monthly basis.

How to calculate Average Order Value:

To calculate your company’s average order value, you only need to divide total revenue by the number of orders.

For instance, if your total revenue this month is $40000 from 200 orders, your AOV is calculated by dividing $40000 by $200, that would be $200.

$40000 / 200 = $200

Why is it important to boost AOV?

  • To ensure your Customers Are Happy

Retaining existing customers is just as important as increasing AOV to encourage repeat purchases. 

Important metrics show customers build an emotional relationship with a brand when they see the retailer actually cares about them, and not just their purchase. To have happy customers and increase their retention rate provide great customer service that includes live chats, 24/7 support, quick response times, product recommendations, personalised emails, free shipping threshold, product warranty, shipping tracking, and post-sale services. 

  • To Add Value to the Customer’s Journey

Today’s customers look for value and not just products. The bottom line is the more you offer, the more amount customers spend. By adding some solutions that boost their experience, you can effortlessly provide value to your customer journey. Viz. Multiple ways to checkout including one-touch payments or pay later services, bundled discounts, free trials, free gift cards or samples, product warranties, free shipping, and shipping insurance. 

  • For better Shipping ideas

Shipping is undoubtedly one of the biggest areas of concern for shoppers and free shipping can definitely add value to their journey. Other than offering free shipping to boost your customer’s experience; shipping tracking and shipping insurance can also be offered which can increase the AOV and hence your sales.

  • To Keep Them Coming Back and grow your recurring customer list

Calculate CLV. Create a custom, personalised experience tailored for your customer to grow your customer base effortlessly and make them keep returning to your store. This will drive your AOV which indirectly works for your revenue rise.

  • To Grow Globally across borders

Emphasis on performance marketing efforts to grow your global customer base by offering to ship worldwide. If you’re already doing it, try to minimise the amount customer spends on international shipping and the probability of international parcels getting lost or damaged or losing money on damaged packaging. 

10 Effective strategies on how to increase average order value 

1. Free shipping on minimum order value and other gifts

Free shipping can be a highly effective way to nudge online shoppers to spend more thereby attaining the highest average order value by industry. 

2. Volume discounts: 

Besides free shipping, offering a set discount for orders over a certain value can also be used for increasing AOV. For example, you could offer a 10% discount price for orders above $50.

3. Bundle products or create packages

To drive customers to purchase more items, try product bundling that cost less than if the same item was purchased individually. By bundling products or by offering a package of products, you’re increasing the perceived value of a customer’s purchase giving them the all-in-one solution for the desired experience.

4. Upselling or cross-selling of complementary products

Like bundling; upselling and cross-selling are all about pushing customers to buy complementary or latest versions of the products they were intending to purchase. 

Remember not to upsell too much in large quantities, and recommend as a friend would. Offer low-value upsells to increase the likelihood of purchase. Also, test with post-purchase upsells when trying to bundle complementary products.  

5. Coupons: 

Offer coupons for the next sale. For example, “Spend $ 100 and get $ 10 off your next purchase!”

6. Donations: 

Donation to a non-profit organisation for minimum purchase.

7. Return policy: 

Provision for easy return policies. “Feel free to return/replace if you’re not satisfied”.

8. Set up a customer loyalty program

Setting a customer loyalty program is a retention strategy that helps you forge relationships with your customers and increase the customer lifetime value CLV significantly.

9. Provide 24/7 live chat support 

24/7 live chat helps customers get their immediate questions answered at the time of checkout, which means more chances of a sale and fewer abandoned items. While product reviews, testimonials, and other social proof also help, live chat can close the deal when it counts the most. 

10. Sell more to potential buyers

Concentrate on visitors who already want to buy. They are your site visitors; they may even have items in their carts. Just help them discover the right product and then buy other items relevant to them. 

How Adobe Commerce can boost your AOV?

Selling around the world is totally achievable even if there are barriers. All you need is to just be backed by suitable products that address the issues with product returns and shipping facilities. Adobe Commerce helps in focusing on average order value Google Analytics and calculating customer lifetime value with the latest apps and integrations best suited to your eCommerce operations and growth. 


Average order value. Optimizely. (n.d.). Retrieved August 2, 2022, from 

4 ways to boost your average order value. The BigCommerce Blog. (2022, June 29). Retrieved August 2, 2022, from 


    Minal Jain
    Minal Jain
    Senior Content Writer