Average order value: Effective strategies to increase it for your Magento 2

Average order value

Average order value( AOV) is a simple calculation (revenue ÷ number of orders = AOV) that can reveal a lot about your customers and your online business during a specific time period.  The main benefit of increasing the average order value is that you make more money from each transaction. Thus, making your online store more profitable. Often, when a customer shops online, they’ll only purchase exactly what they’re seeking. However, with effective average order strategies that we’ll show in this article, you’ll learn how to present more great products to shoppers to create more sales from each order

There are many ways to boost your sales such as getting more customers, charging higher prices, increasing repurchases, and boost average order value. Depending on your business, an effective way can be different. However, there is money on the table, if you focus on boosting the Average order value. Even with traffic fluctuations, your profit may be increased due to the higher value per purchase.

What is the Average order value?

Average order value (AOV) is the measure of how much money your shoppers spend each time they place an order through your online store. You can estimate your store’s average order value by dividing your store’s total profit by the number of orders taken. This formula is the easiest way to calculate it. Remember that it doesn’t take into account marketing costs.

Average order value

Why Focus on Increasing Average order value?

In many eCommerce markets, having new customers is difficult and expensive, often asking a significant investment in demand creation marketing and advertising. Optimizing your Average order value is one of the most efficient and relatively inexpensive ways to boost revenue and cash flow (a signal of any strong business). Whereas boosting site traffic commonly relates to researching and implementing complex marketing strategies to attract new customers, boosting your Average order value could be as easy as intergrading a plugin for your shopping cart.

Improving Average order value can also help you strengthen your business against fluctuations in traffic. Actually, you may get less traffic overall but see higher revenues as increased AOV and more targeted marketing methods. Regardless of why your Magento site may attract fewer users, your online business will be in a better position than if you hadn’t already taken steps to improve your Average order value.

How to Increase Average order value for Magento 2 Store?

1.Bundling multiple Products together

A common and effective technique is to sell related products together in a bundle. Product bundling makes purchasing multiple products at once easy. These pairings are usually a primary product (e.g. Laptop) grouped together with its accessories (e.g Headphone, Mouse).

There are lots of methods to create bundles in the Magento 2 store. In the fashion or furniture industry, many websites offer a “Shop the Look” or ”Shoppable Image Gallery” option, which allows customers to purchase an entire outfit (often 3 or 4 products) in a single click. Not only is this a great way for optimizing Average order value, but it also helps personalize the customer shopping experience.


Lookbook extension for Magento 2 

While bundles may be discounted to promote customers to make purchases, although this may not always be necessary. Sometimes the advantage of having products prepackaged together is sufficient to entice customers to buy. Test different bundling/pricing method to decide which ones will provide the best conversion and revenue results for your business.

 2. Customer Rewards

There are many profits to set up a customer loyalty program, one of which is that it can encourage your customers to keep coming back to your website. Small and large eCommerce stores alike use this method to increase their Average order value and jumpstart sluggish sales.

Generate an effective reward system, and you’ll get a significant boost in your Average order value and revenue. Reward customers have many different forms, such as writing a review, making repeat purchases, reposting a link to the website on social media, and so on. Build a special bond with your customers, make them feel special. By performing these simple activities, you will enhance customer loyalty and promote your brand. Here are a few incentives you can implement in Magento 2 website

  • Promotions/Discounts :  Provide discounts for spending more money or purchasing additional products. Or, provide valuable services such as free shipping when shoppers spend a certain amount
  • Rewards Points: Rewarding customers with points for spending more money on your Magento site is an effective way to optimize Average order value while at the same time promoting customer loyalty. The more customers purchase, the more points they earn. Points can later be redeemed for discounts, free gifts, and other incentives.

If you are running a Magento store, you can try Reward Points for Magento 2 by Amasty  to succeed in creating a reward program

3. Free shipping motivates purchase

Average order value

The convenience of shopping online is time and travel cost savings. However, freight costs might discourage people from purchasing a product. According to ComScore Study, free shipping is becoming essential; 80% of shoppers will switch to another store if shipping is not free. Decide your average order value, and add, for example, 20% to it. If your average order value is 150$, you add 30$ (20%) to this total and have 180$. This amount should become your free shipping threshold. It’s profitable both for you and your customers.

Free shipping for all types of products is impossible. However, in term of optimizing Average order value by free shipping, there are several ways you can consider as follows:

  • Free shipping threshold: Normally, if shoppers buy over the minimum order, they will gain free freight costs.
  • Flat rate shipping: It is not free shipping but it entices people to buy more. If customers utilize a flat rate, the quantity of items does not affect shipping costs.
  • Selected product shipping: This is an effective method especially when you are executing a bundle promotion. Instead of buying individual products, customers can buy a bundle to take benefits of free shipping.
  • Limited-time free shipping: During a promotion campaign, eg. Seasonal promotion, if you want to clear out inventory, you may use bundle products and provide free shipping to entice the customer to make a purchase

Another crucial aspect is to provide an individual approach to each customer when selecting shipping options. Take a glance att Delivery Date & Time Magento 2 Extension for envisaging specific delivery options to the purchasers.

4. Flexible Returns

One of the biggest problems customers have about shopping online is whether or not they can return the products they buy. If customers think that returning something will be expensive or difficult, he will purchase fewer products to reduce their return risk. Statistics reveal that an easy return policy actually leads to customers buying more products and maximizing Average order value. One effective way to do this is by offering free shipping on both orders and returns

5. Up-selling and Cross-selling

Up-Selling and Cross-Selling techniques are the most important part of developing eCommerce sites and maximizing average order value. Use up-selling and cross-selling techniques. In other words, add product suggestions to your product page.

  • In up-selling, the customer is recommended similar but more high-priced items compared to the one they are currently viewing. The owners tore can suggest the customer purchasing upgraded versions of the product, and more expensive items
  • In cross-selling, recommendations for additional items related to the one being viewed are shown. The main goal of cross-selling is to boost Average order value by suggesting additional items. You can provide your customers with any product that is relevant to the chosen one

In Magento, up-Selling and cross-selling can be achieved through the Product Attributes feature.

6. Target Customers by Purchase History

When you know the purchase behavior and history of your customers, you can use this data to send them highly-personalized offers and discounts to drive more sales. Not only is this technique effective for increasing your Average order value, but it can also improve the user experience

7. Free gift offer

Average order value

Anyone like free gifts, hence, free gifts can be an effective method to maximizing average order value. The options to run a free gift campaign are similar to free shipping such as basing on the total shopping cart, bundles, etc. Promote customers to purchase more when they check out with such a message as “Buy more 20$ to get a free gift”.

8. Personalization and Recommendations

Customers want to purchase more and will purchase more   if you make the shopping experience easy and relevant to them. The more relevant the items offer, the more likely they will buy. There are two key factors to help customers find the items most relevant for them:


Marketing strategy is most effective when it’s 1:1. And when shoppers are shopping online, it’s simply to identify them and personalize their shopping experience. This can be as simple as personalizing a welcome message with your customer’s name or as complex as personalizing promotions with customer-specific landing pages that highlight a specially curated product catalog


Customers often don’t know exactly what they need and are seeking for help selecting items. As a retails you can utilize the information you’ve gathered about your customers to help recommend items for them:

  • Search Queries — Recommend items based on a user’s search terms
  • Geographic Location — Recommend relevant items based on customer’s climate/ weather, state regulations, and other regional specifics.
  • Customer Segments — Utilize the purchase histories of customers with similar demographics to suggest products.


Increasing your Average order value is essential for revenue growth. However, don’t try all methods at once. “Listen” to your business essence, take steps one by one, and check your results. Especially, find a balance between discount and profit margin. Finally, try out some ou Magento 2 extensions to support your program. We are providing the best Magento solutions for you with a lot of excellent Magento extensions and themes that can skyrocket your revenue.  Learn more about us now: Magesolution and  ArrowHiTech portfolio.

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