Experts Opinion to Increase Average Order Value in E-commerce
E-commerce businesses have tremendous growth potential. Profitable E-commerce businesses focus on increasing average order value. However, not all E-commerce businesses are profitable.
Have you heard about the 80/20 principle in business?
The meaning of this principle is 80% of your business comes from 20% of customers. In order to make a profitable business, as a business owner, you need to have this 20% of customers.
These are the customers who will keep purchasing from your E-commerce store and that will increase the average order value of your online store.
What is Average Order Value?
The average total of every order placed over a specific period of time is the Average Order Value.
For instance, if your E-commerce store has $50,000 monthly revenue having a total of 5,000 orders, the average order value of your E-commerce store would be $100.
Increasing the average order value exponentially boost revenue and profit as well.
Here are the benefits of increasing Average Order Value in E-commerce:
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Growth in revenue and profit
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Sell more goods
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Positive Return on Investment (ROI) on marketing
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Low cost of client acquisition
Another way to increase average order value is to offer gift cards to their loved ones. The gift card acts as a payment method and the holders to purchase anything from the online store in the future. Attract loyal customers with Magento 2 Gift Card extension and boost sales!
This is a complete guide where you will get to know how the experts of the E-commerce industry increase Average Order Value. If you also implement the same methods which the experts have mentioned here, you can also increase Average Order Value of your E-commerce business as well.
Experts Opinion to Increase Average Order Value in E-commerce:
A store owner can lure the customer for free shipping based on the cart value. Offer free shipping for a minimum cart total. Customers love free shipping and tend to buy more to avail this facility. In this way, prompt customers to buy more and increase average order value in your online store!
One tactic I’ve used across my businesses is to reframe pricing. For example, our current offering is $2.99 a month. We saw a 26% increase in conversion when we said it’s less than one coffee at Starbucks. When you anchor pricing to something else, you create a different value perception. It will drive your customers to purchase more, increasing your AOV and conversions.
The exit-intent popups can do wonders for your online business. It can boost your website’s conversion rate and maximize your average order value. If your goal is to convert more visitors into your leads, then placing one-time offers or discounts in exit-intent popups is essential. Give customers an offer that they can’t refuse. Make sure that you let customers know that the offers are for a limited time only. Increasing the sense of urgency can make customers buy the items that you sell immediately. Personalization and exit-intent technology work hand-in hand. A quick mention of the customer’s first name can positively affect the way they interact with the popup. But more than that, using their buying history to provide personalized recommendations via the popup is a big plus.
My best tip to increase AOV in online stores is to give customers an
incentive to increase their cart size. I do this by offering a coupon to
repeat customers to save $10 on any purchase over $100, as a reward for
increasing their cart size.– Stacy Caprio, Marketing, AcneScar
We have found the single best tool we have done to get people to buy more is to offer product “bundles.” We pair products that work well together in our skincare line and give a discount but buying the bundle. On top of selling more product, we get folks to try products they weren’t necessarily going to purchase. Some may come for our night oil but will buy the bundle with a facial mist and save $15.
We also find offering a complimentary but affordable product, like our makeup remover, helps sell those “impulse buy” items at check out.
– Matt Meyerson, CMO/COO at Dearselfskincare
That was experts’ opinions on how you can lure the customers to buy more!
If you are a Magento 2 store owner, Meetanshi offers Magento 2 Recent Sales Notification extension that displays “Someone recently purchased” notification popup in real time to attract visitors to buy the bestselling and trending products.
It offers:
- Fully customizable notification popup design
- Customize the popup text using system variables
and much more.
Do let me know how the post was useful to prepare the strategy to increase average order value in your online store in the Comments section below.
Also, please share the post with E-commerce store owners via social media.
Thank you.
Display real-time notification popup to show most recent purchases and flaunt your trending products.
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