AOV or Average order value is about the average amount of money people spend when they are ordering something from your eCommerce store. Many of you might not be familiar with the term but don’t worry because that is why we are here! To tell you everything about it and how you can boost profits and the Average order value of your store.
Many eCommerce store owners think that bringing more customers to the store might increase revenue — little do they know is that’s not how it’s done. Instead, you need AOV to get things done! Yes, even if you think that your conversion rate is high, you are getting enough traffic and all but if your average order value is low then this is not good for your business.
What happens when your store’s AOV is increased?
When you increase your store’s AOV it helps you to get more value out of your existing customers. Do you know what that means? Well, you don’t have to send out those marketing emails to grow your business anymore. Now you know how mathematics work, right? Get the customers to spend more money, although that is not the only way to earn. But certainly the most effective way.
Five tips to boost your eCommerce profit and average order value
How that you understood the basics, we suppose, it’s time to discuss the real thing. How can we boost our eCommerce store’s Average basket value? Below are the five tips that you can use to boost your average order value!
Free shipping
Let’s make it simple and steady for all. The best and easiest way to increase the sale is to offer free shipping. But remember that there are conditions and terms of free shipping. You surely have been through those websites that offer free shipping only if a certain amount is spent while making a purchase on their website. Now, this is what you can call a marketing strategy. This is authentic and works every time.
Take your own example, wouldn’t you order an extra pair of pants or socks along with rdr2 pearson scout jacket if they are offering you free shipping on completion of a minimum purchase? When you offer free shipping on your product, it makes people buy more from you. They/d rather spend a\extra bucks on a jacket they might never use instead of paying for the shipping. Well, that’s how consumer nature is. Hence the first thing you need to work on is to make sure that you are offering a good shipping policy as compared to other eCommerce stores.
The more products will be in the cart, the more revenue you’ll get. Plus it helps you to build identity. More people will start recognizing your store and it will increase your sales and average order value.
Cross-selling
However, there are many other benefits of cross-selling and we personally think that is it quite a better option than upselling. For those who don’t know what cross-selling is, well, it’s marketing for additional products. For instance, you know how when you walk into a store specifically the skincare section — the salesperson will make sure that you won’t leave the store unless you buy sunscreen along with the face wash.
This tactic doesn’t only work in physical stores but is also helpful in your eCommerce store. Once you start cross-selling, it helps you with your AOV because customers tend to spend more time on your store. Therefore, what you need to do is suggest better but more expensive products. For instance, you can compare your own old and new products just so that they can make a better choice. You might find this one pretty risky since not everyone falls for that but if this will work, you are going to get a lot of advantages for that. Besides, you do need to get rid of your old stocks, right? So, what do you think, would be better than doing this?
Bundle deals
You must know that each tip that we are mentioning here came from experts, those who are leading a successful eCommerce store. Anyways, bundle deals are by far the most effective tip you can go for if you need an instant boost to your profit. We know that you are going to agree with that because almost every one of us prefers bundle deals over a single purchase. It’s easy, convenient, and less time-consuming. Moreover, customers are most likely to buy from you if you sell something in bulk. Another thing you can do along with it is you can offer some discounted coupons or something like that.
There are physical stores that need products in bulk and they are always looking for a reliable store that does not only offer less time-consuming shipping and discounts. Obviously, online stores are a better option for them because they don’t have to leave their home and search the market. They can simply go through your online store and tap to order. If you are selling the best leather jackets online, no one is going to visit a physical store to buy them.
Build a trusted relationship with your customers
Now, this is something that not only you but every store owner needs to learn. A trusted relationship between you and your consumer is all that you need to grow professionally. But how can you gain their trust, well, as simple as it sounds? The only way they are going to trust your services is when they read positive reviews about your products and website, and that comes with actually selling quality goods. They need social proof so that they can trust you for their needs.
Do you know that more than 70% of customers buy a product after reading a good review? And the rest? Well, they get scammed. Not really because as you know it’s not hard to buy reviews these days. But remember that hard work always pays off. So if you are really making effort to create a relationship with your customers just so that they trust your services, this is not going down the drain.
Flexible return policy
You need to focus on so many things to increase your store AOV and providing your customers with a flexible return policy is also one of them. So let’s end your curiosity if you are wondering why — when you purchase something from an online store and it doesn’t turn out the way you thought it would, the only thing you check is if the website has a good return policy. Although, this should be the first thing even before putting things into the cart. Anyhow, this should be in your policies.
The main reason why many websites don’t work efficiently is that they don’t have a reliable and flexible return or exchange policy when this is considered to be a necessity. Even if you buy something from a physical store, it gives you leverage to return or exchange it if you don’t find the product according to your needs. And this is how it should be.
Conclusion
These are the five major tips from experts but how would you know if these tips are helpful or not? Well, there is only one way of finding that out. You’d have to use them in order to make sure. Besides, some of these tips are not just tips but basics of running a store whether it’s online or physical.
