What is your goal for your eCommerce store? To make money, right?
The easiest ways to increase your revenues for an eCommerce business is to increase the amount a customer spends when placing an order on your store.
In this post, we’re going to discuss ways to increase your average order value.
Usually, Customers are so focused on buying a particular product than they don’t feel to look at other products. This leads to smaller Average order value.
To Avoid this problem or Increase the Average order value, Try to add Related products that fit well together or are often purchased together. For Example, Do you sell clothes? Then if the customer is looking for tank top then you might add a Skirt or pair Jeans as a related product to your product page or checkout page.
You don’t need to show most search product as a related product instead of that you can provide a recommendation based on your business priorities.
An Upsell, if implemented effectively then it is the best way to increase average order value or profit. It simply encourages the customer to purchase the more expensive product by simply offering a similar but more expensive product. For example, if you are selling Pillows then you might upsell with products like Duvets or comforters etc.
The efficient way to upsell product is to sell product related to the same and relevant category.
A cross-sell is another way to increase your average order value by suggesting an additional product from a product they are viewing. For example, if your customer is buying a laptop then you might add laptop bag, hard disk or insurance plan etc as a cross-sell, that gave a user a desired experience and them more likely to purchase them in combination.
While cross-selling just keep in mind that suggestions need to be relevant. A person buying mobile phone will require a mobile cover, not certainly a DSLR.
You can also increase your average order value by influencing customers to spend a minimum amount. For free shipping or Discount offers or cash back offers, for example, get free shipping for all orders above INR1000.
Other examples of minimum order incentives include offering a discount, free gift or cashback offers. For example, giving a 10% discount on orders above INR2000 or a buy 2 get 1. Make sure that you promote this offers on your website.
If you are selling consumable products – something that buyer usually repurchase. Then creating a customer loyalty program is the best way to increase average order value.
It is a retention strategy that helps you to build a strong relationship with your customers and encourage them to purchase again. It offers the best discount or cashback offers to those customers, who keep coming back. You might think that those discount which can cut your profit, but a study says that loyal customers spend 120% more than new customers annually.
If you want customers to spend more amount on one order, try to bundle the products that cheaper than the package if they were purchased it individually.
The best approach to product bundling is by offering a whole package of products they want. Now they don’t have to browse the whole product to find a matching product. This makes easier for a user to get everything they need in one shot, And indirectly you increase your revenue through selling multiple products.
Let’s imagine you own a clothing store and sell tops and jeans (that cost INR 1300).
You also sell accessories, shoes. So, you could just bundle them together for INR 2000 and call it a perfect look Pack.
Take the concept further: Allow your customers to customize their own package and thus increase your average order value.
“Fear of missing out” is the best thing for the business strategy. Mostly, the customer doesn’t want to miss the product they badly want for lower price or at stock clearance. So, you can take advantage of this desire and create time-sensitive offers.
You can offer a time-sensitive deal to increase average order value. For example, Free delivery or get 50% off for 48 hours, or promote a product to your customers when only a certain quantity of product remains.
While it only boosts your conversion for a limited period. It might not increase your AOV for a longer period.
Obviously, the strategy you want to implement depending on your E-commerce business. The best keys for a successful business are consistency and expectations. Make sure you provide consistency to your customers. For example, when a user visits for the first time they get free shipping and to get it again they visit again and get surprised to not receive it. So, be clear about your offers. If you are offering a deal for a particular time then let your customers know about that. As Unpleasant surprises lead to drop your revenue.
Golden words: In the era of technology most people search everything on internet so most effective way of caching more customer is an online store or a business website if you don’t have this might be you will lose customers. Don’t worry if you do not have as I talked before it is an era of technology so there are lots of website builder app or mobile app builder like more customers app they will help you in create e-commerce website without more efforts.