One of the key ways to boost the profitability of an online business is by increasing the average order value. In practice, this is more profitable than handling many small orders that add up to the same amount for several reasons:
Focusing on increasing the average order value makes a business more profitable, reduces operating costs, and improves marketing and logistics efficiency. Instead of chasing a higher volume of small orders, it’s more effective to encourage customers to increase the value of each purchase.
In this article, we’ll explore how online store owners using the WordPress platform can achieve this and what effective tools are available.
The following strategies have proven effective in increasing average order value in WordPress-powered eCommerce stores:
All of these tools help motivate customers to spend more in a single transaction. Let’s take a closer look at how each one works.
Upsell is when a customer is offered a more expensive or enhanced version of the product they’re already planning to buy. For example, if a customer intends to buy a smartphone with 128 GB of memory, the store might suggest upgrading to a 256 GB version for just a little more than the original price.
Cross-sell involves offering additional products that complement the main purchase, enhancing its functionality or usability. For instance, if a customer adds a laptop to their cart, the store could recommend accessories like a mouse, portable printer, extra battery, bag, or extended warranty.
Research shows that Upselling and Cross-selling can increase the average order value by 10-30%, depending on the niche. Here are the top 5 categories where these methods work best:
When implemented correctly, Upsell and Cross-sell are highly effective strategies for increasing the average order value without the need for additional customer acquisition efforts.
Bundling is the practice of selling several products together as a package at a favorable price. For example, when a customer buys a smartphone, the store offers a bundle with a protective screen and a case at a discounted rate.
Bundle Discounts involve offering a price reduction when customers buy multiple products at once. Examples include “Buy 3 t-shirts and get 15% off” or “Buy 3 items for the price of 2.”
According to long-term market research, bundle offers can increase the average order value by 20-40%, especially in the following categories:
Bundle offers are a “win-win” strategy for both customers and retailers, boosting average order value and increasing customer loyalty.
A minimum order amount for free shipping is a strategy where customers receive free delivery if their order exceeds a specific amount. This threshold should be set in such a way that it covers shipping costs and still allows the business to make a profit.
Studies show that offering free shipping can increase the average order value by 10-30%, especially in categories where customers are more likely to make impulse purchases or easily add low-cost items:
Setting a minimum order amount for free shipping is one of the easiest and most effective ways to increase the average order value without pressuring the customer.
A loyalty program is a system where customers receive fixed or progressive discounts and bonuses for purchases, which they can use on future orders. Bonus points are virtual currency earned through purchases or actions like writing reviews, subscribing to newsletters, or referring friends. These points can be redeemed for discounts or gifts.
Research shows that loyalty programs can increase the average order value by 15-40% and the frequency of purchases by 30-50%, particularly in the following categories:
Loyalty programs are a powerful tool that not only boosts the average order value but also fosters customer loyalty, reducing the likelihood of customers switching to competitors.
Personalized recommendations are product suggestions tailored to a specific user based on their behavior, preferences, and purchase history. These can include:
For example, if a customer is interested in running shoes, the system may suggest sportswear or fitness trackers.
Studies show that effective personalized recommendations can increase the average order value by 20-35%, particularly in these categories:
Personalized recommendations are a powerful tool that not only make shopping more convenient for customers but also increase the average order value for your store with minimal effort.
The various strategies for increasing the average order value leverage psychological triggers and customer preferences. Here’s how they work:
Instead of using multiple separate plugins that might overload your site, consider a unified tool like Salesmax from 8Theme. It integrates all these features into one seamless system for your eCommerce project, improving your conversion rate and average order value without compromising your site’s performance. Visit the product page to explore its full potential.