March 17, 2017
Your eCommerce website has been in operation for a while and you’re making a few sales. The problem is that shoppers normally checkout with a small amount, which isn’t really doing much for your revenue. You want to make sure people start buying more items at one time, which will eventually boost your sales and revenue. In other words, you need to increase your store’s average order value. Here are seven actionable tips to help you out:
1. Set a Threshold for Free Shipping – You want to ensure a good customer experience so you decide to offer free shipping. But doing so could take a toll on your revenue. But you can solve this by setting a threshold for shoppers to get free shipping, compelling people to add some more items to their cart if they want free shipping.
You could display it in a banner on top of the page like Shubar has done in the following screenshot. As you can see, shoppers can get free shipping if they buy $50 or more of merchandise. You can also give them a prompt about adding a few dollars to their shopping carts to receive free shipping.
2. Recommend Popular Products – Many shoppers may be too focused on the one item they had intended to buy that they completely ignore any other items in the store. So their average order value would naturally be lower. You can try recommending some popular products in the product pages or on the checkout page.
You can use social proof to further encourage these shoppers. For instance, you could display the items by saying “People who bought this also bought…” You could also include review and rating widgets to display what users feel about those recommended items. This could encourage shoppers to add more items to their carts, thus increasing the average order value.
Amazon does a great job of this by recommending some of the popular products other customers buy along with the product being viewed. As you can see in the screenshot below, the recommendations are displayed with the number of ratings. This can be an excellent way to prove to shoppers that you’re recommending products that other customers love.
3. Recommend Complementary Products – Although somewhat similar to the previous tip, this strategy involves handpicking items to recommend to shoppers. Here, you consider what items shoppers have in their carts and then recommend products that would go well with those items. Normally, you’d be recommending add-ons or accessories that can be used with the product in a shopper’s cart.
For example, you could recommend headphones to a customer buying a laptop. Asos does a great job of recommending complementary products by encouraging shoppers to ‘Buy the Look.’ Here, it displays suggestions for the other items the model is wearing with the product being currently viewed.
4. Create Bundles and Packages – You could also encourage people to checkout more items by bundling up various products into a cheaper package. This means that the items would cost less when bought together than they would cost individually. By doing this, you’ll be increasing the perceived transaction value and your average order value. It’s almost similar to recommending complementary products except you’re giving them an even better reason to buy all those items.
Safe Sleeves does a great job of offering product bundles. It offers 15 percent off when shoppers bundle a laptop sleeve with a Smartphone sleeve. Although it is not forcing shoppers to go for the bundle offer, it is made enticing enough so that many people would opt for it.
5. Display Cost Savings – This strategy is somewhat similar to bundling products together in that you’re increasing the perceived transaction value. But in this case, you’ll be offering them a deal when they buy more than one unit of the same product. And you’ll be displaying the amount of money they’ll be saving on the order.
For instance, you could display the cost of one unit and compare it to the cost of purchasing two units at the same time. Let’s say the cost of one unit is $15, but you’re offering two units for $28. You could highlight the fact that customers will be paying only $14 per unit if they buy two.
6. Provide Minimum Order Incentives – Other than cashbacks or free shipping, you could also provide incentives when shoppers’ carts reach a certain amount. In other words, you’ll be rewarding shoppers for reaching the purchase amount threshold you’ve set. You could offer them free gifts or discounts when they buy for a certain amount.
For example, Shubar wants to encourage shoppers to buy more than just one pair of shoes. So it promotes a limited time offer where shoppers can get 50 percent off on the second pair of shoes they buy.
7. Offer Cashback for Higher Order Values – Let shoppers know that you’re going to give them something in return if their cart reaches a certain amount. You could offer cashbacks in the form of gift cards, vouchers, or store credits for a certain order value. For example, offer them a $10 voucher if their order exceeds $50. This not only increases the average order value but also encourages repeat purchases.
These are some of the best ways to improve your eCommerce performance by increasing average order value. Some of the tips such as free shipping threshold and product recommendations can be applied all year round. But some of them such as cashback and minimum order incentives would be best applied every now and then for a limited period. This is because offering year-round discounts and incentives could have a negative effect on your revenue despite a higher average order value.
Set up a plan to include these strategies in your promotional efforts for better eCommerce performance. So which of these tips would you apply first? Let us know in the comments below.
Brandon Leibowitz is the founder of SEO Optimizers, a digital marketing agency in Los Angeles, California. He is also the founder Bosmol.com, a social media news log. He has been involved with search engine optimization and internet marketing since 2007. He is featured on sites such as SocialMediaToday, Examiner, Business2Community and other popular sites. His knowledge and dedication has made him a popular influencer on many social media sites. Get in contact with him today via email@example.com