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How to Increase the Average Order Value (AOV)

1. Optimize Free Shipping Threshold

Offer free shipping for orders that are at least 30% higher than the current AOV. Communicate the offer to users via email, notification campaign or checkout.

2. Bundling and Bulk Deals

Create bundles that are logical buys and offer a small discount. Create a 2X or 3X bundle of items that will be used frequently by the buyer. Customers like purchasing items in bulk, as it saves cost and time. 

3. Cross-sell And Up-sell 

This needs to be enabled using “Similar Products,”, “Frequently Bought Together,” or “You May Also Like” feature on the website. This needs a data layer that the analytics team can work on to create suggestions for the user. 

4. Gift Cards on Spend Threshold

Gift cards are great incentives. Price the gift card in a way that it is not a heavy discount and does not deplete margins considerably. It should, however, be attractive enough for the user to add more items to the cart. 

5. Loyalty Program

Loyalty programs like free delivery, standard discount or early access drive higher purchases by customers. Loyalty programs should be designed right and shouldn’t be seen as a short-term strategy.

6. Limited Time Deals

Limited-time deals are a tactic based on the scarcity principle. Adding an expiration date to a minimum order size offer adds a sense of urgency (put a countdown timer).

7. Add on Low Cost Items

Low cost add-on items displayed at the right place enable users to give in to impulse buying. Adding a couple of low cost items can increase the overall purchase basket size by 10%.

8. Financing

Zero cost EMIs can enable users to consider purchasing a more expensive item in high cost categories. Communicate it to users upfront so that that they can consider buying the more expensive version.

Bonus Idea

Use pricing strategies to drive up the AOV. Look up some of the ideas on pricing in this blog post: Pricing Strategies

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