When it comes to making more money, it's easy to think that getting more customers is the only way to do it... But hold on a sec! There's another way to boost your revenue that you might be overlooking: increasing your average order value (AOV). 

By focusing on this metric, you can get more out of the customers you already have without having to spend a ton on acquiring new ones. And, let's be real, who doesn't love making more money without spending more money?

So, what exactly is AOV? Well, that’s what we’re going to talk about. We’re also going to let you in on how to calculate it, how to measure your performance against industry AOV benchmarks, and strategies that you can implement to push your AOV up! 

What is Average Order Value? 

Put simply, AOV is the average amount of money customers spend per order. And, if you're thinking, "Well, duh, I know that!" let's take it a step further. 

AOV is the average amount of money that customers spend per shopping cart. So, if you want to increase your AOV, you need to get customers to spend more money per order or cart. 

AOV is a super important metric because it can give you a ton of insights on how to make more money, like what to charge for your products or services and what products or services to focus on. Plus, it can give you a good idea of the overall health of your business. A high AOV means people are spending more money, which is great! A low AOV might mean you need to work on making your products or services more valuable to customers. 

How do you calculate it?

AOV is easy to calculate; you just need to know your sales data. To calculate AOV, you take the total amount of money you made from sales, and divide it by the number of orders.

For example, if you made $10,000 in total revenue and had 100 orders, your AOV would be $100.

Also, it's worth noting that AOV can change depending on who your customers are, what they're buying, and when they're buying. So, it's a good idea to calculate your AOV regularly and check it out by different segments to see where the opportunities lie.

Now, you might wonder, "How do I know if my AOV is good?" That's where industry benchmarks come in. You can compare your AOV to the industry average and see if you're above or below it. If you're below it, you have room for improvement! 

So, how do you increase your AOV? There are a few ways to do it. 

Increasing your AOV 

Cross-selling & upselling 

One way to increase the value of an order is to offer related or upgraded products to customers as they add items to their cart. This can be done through upsells and cross-sells.

A cross-sell is when you suggest a product that complements the item in the cart, for example, Amazon's 'Frequently Bought Together' feature. On the other hand, an upsell is when you offer an upgrade or a more expensive version of the item in the cart.

These offers can be presented in various ways, such as directly in the shopping cart during checkout, on the product page, or as a pop-up notification when certain items are added to the cart. 


Product bundling can be a powerful marketing technique that can help boost sales and increase your Average Order Value (AOV). The idea is to group several products and offer them as a bundle package at a single price. This can be a great way to encourage customers to purchase more items from your store and get more value out of their purchases.

For example, a clothing store could offer a bundle deal that includes a shirt, a pair of pants, and a belt, all for one discounted price. This is more appealing for customers than buying each item separately, increasing the chances of customers buying multiple items during a single transaction. 

Additionally, this bundle can increase the perceived value of the products and make them more appealing to the customer.

Product bundling can be a great way to increase sales and profits over time. By grouping products together, you can make it more convenient and attractive for customers to purchase more than one item during a single transaction, ultimately leading to a higher AOV.

Free shipping 

Offering free shipping over a specific price point can greatly increase your AOV and boost your sales. When customers see that they need to spend a certain amount to qualify for free shipping, they'll be more inclined to add more items to their cart to reach that threshold. This is particularly true for customers who are ordering from outside your country and may be looking to avoid costly shipping and import fees.

The question then becomes, how much should customers spend to qualify for free shipping? 

There's no easy answer to this question, as it depends on various factors.

One thing to keep in mind is that the minimum order amount for free shipping should be higher than your current AOV if you're looking to increase it. 

Additionally, you should consider your cost per sale. If your cost per sale is high, then the minimum order amount for free shipping should also be higher.

It's also important to consider the cost of shipping for your business. For example, if you're a US brand offering free shipping to customers in Canada, you'll need to factor in the customs fees for Canadian orders. In this case, setting a higher minimum order value for free shipping may make sense.

Add a loyalty program 

When it comes to increasing your Average Order Value, it's essential to consider what your customers are getting in return for spending more. One way to do this is by implementing a loyalty program that rewards customers for making more significant purchases.

Consider offering a loyalty program for customers who purchase consumable products like food, supplements, vitamins, etc. This can be a great way to encourage repeat business and increase customer retention.

It's important to remember that the loyalty program should be adaptable to the current situation and market trends; for example, during a global recession, it may not make sense to reward buyers with luxurious gifts for spending a lot.

By creating an incentive for customers to earn rewards through your loyalty program, you can expect an increase in your AOV, as customers will be more likely to make larger purchases to earn those rewards.

Test out pricing strategies 

Pricing your products can be a tricky business. Every audience is different, and what works for one may not work for another. The only way to know the optimal pricing point for your audience is to test different strategies.

There's no magic formula for pricing. Raising or lowering your prices can affect your conversion rate, cost per sale, and AOV. Experimenting with different pricing strategies is essential to find out what works best for your audience.

For example, raising your prices could decrease conversion rate, but it could also mean that customers are willing to pay more for your products. Lowering your prices could increase conversion rate, but it could also mean that customers are less likely to purchase multiple items.

The best way to find out what works for your audience is to research your niche and see what other similar stores are doing. Additionally, try testing different pricing strategies, track the results and adjust accordingly.

Focus on your biggest fans 

Paying attention to your Average Order Value allows you to capitalise on the visitors who are already looking to buy from you. These visitors have high buying intent and have taken the time to visit your site and possibly even added items to their cart. By highlighting relevant products and upselling/cross-selling, you can help them make more purchases and increase the value of their order.

Rather than spending energy on acquiring new customers, you can focus on maximising the value of your existing customers, which can lead to more revenue, higher profits and improved customer loyalty.

If you’d like a team of experts to liaise and work with you on how you can offer your biggest fans maximum value, get in touch with us at Blend. We can’t wait to show you what we can do together! 

Author image

Marketing Executive One of our Marketing Executives and the vibrant heart of Blend Commerce, Jo has an infectious enthusiasm for taking on new challenges, making her a driving force in our team. Her talent spans the realms of both marketing and design, and her growth has been nothing short of remarkable, exceeding all expectations. With Jo as part of our team, we’re not just working; we’re creating, innovating, and setting new standards in the eCommerce world.

Published: January 17 2023

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