{"id":111845,"date":"2018-12-05T11:20:20","date_gmt":"2018-12-05T11:20:20","guid":{"rendered":"https:\/\/staging.wingify.com\/blog\/easily-boost-average-order-value\/"},"modified":"2026-09-02T20:33:13","modified_gmt":"2026-09-02T15:03:13","slug":"easily-boost-average-order-value","status":"publish","type":"post","link":"https:\/\/wingify.com\/blog\/easily-boost-average-order-value\/","title":{"rendered":"How to Easily Boost your Average Order Value"},"content":{"rendered":"<p>Average basket size &#8211; or <strong>Average Order Value<\/strong> (AOV) &#8211; is a key performance indicator for any e-commerce site. Each time your buyers purchase something on your site, they spend a varying amount. <strong>The idea behind calculating AOV is to determine the average amount of an order made on your site.<\/strong><\/p>\n<p>Average Order Value is one of an e-commerce site&#8217;s <a href=\"https:\/\/wingify.com\/blog\/key-performance-indicator\/\">most important KPIs<\/a>. It can help determine ad spend, pricing policy and digital graphic design layout.<\/p>\n<h2>The AOV Formula<\/h2>\n<p>To calculate average order value, you divide revenue by number of orders.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13510 aligncenter\" src=\"https:\/\/static.wingify.com\/gcp\/uploads\/abtasty\/aov-formula.png\" alt=\"How to calculate AOV: Average Order Value Formula\" width=\"400\" height=\"67\" \/><\/p>\n<p>When using this formula to better understand your business, keep in mind that <strong>the average basket size reflects revenues generated per order, not per client<\/strong>. This is a key distinction. Online orders don&#8217;t take into account all of your client&#8217;s habits.\u00a0 For that, we need to refer to <strong><a href=\"https:\/\/wingify.com\/blog\/customer-lifetime-value\/\">Client Lifetime Value<\/a>.<\/strong><\/p>\n<p>For example: just calculating average order value wouldn&#8217;t help you realize that 20% of your clients make a purchase at least once per month on your site. This kind of information could lead you to set up a campaign dedicated to loyal customers.<\/p>\n<div class=\"insert-quote-blue\">\n<p>Even with these limitations, <strong>calculating Average Order Value<\/strong> does help you uncover certain trends in your buyers&#8217; behavior.<\/p>\n<\/div>\n<p>Let&#8217;s imagine for a moment that you sell scented candles. You have four models that you sell at the following prices: $12, $15, $19, $25. Your revenues amount to $95,000, and you had 5,550 orders over the year.<\/p>\n<p>You calculate your AOV and determine that it amounts to $17. You can then work out a few things:<\/p>\n<ul>\n<li>Your least expensive candles represent the majority of your sales<\/li>\n<li>Your clients don&#8217;t buy more than one candle at a time<\/li>\n<\/ul>\n<p>Assuming that your most expensive candles bring in the most profit, you&#8217;ve just found an opportunity that you should act on quickly in order to focus on your most profitable products.<\/p>\n<div class=\"insert-quote-blue\">\n<p>By increasing the average basket size, you increase your ROI and your margin: the higher your average basket size, the more profit you get out of each client.<\/p>\n<\/div>\n<h2>Is Your AOV Too Low?<\/h2>\n<p>This is the nagging question for most e-commerce merchants, and maybe even the question you&#8217;ve been asking yourself since you started reading this article.\u00a0 In order to answer it, let&#8217;s have a look at the following graph:<\/p>\n<p style=\"text-align: center\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13552\" src=\"https:\/\/static.wingify.com\/gcp\/uploads\/abtasty\/aov-evolution-united-states.png\" alt=\"Average value of online shopping orders in the United States from 2nd quarter 2012 to 3rd quarter 2017 (in U.S. dollars)\" width=\"1358\" height=\"892\" \/><span style=\"font-size: 14px\"><em>Average value of online shopping orders in the United States<br \/>\nfrom 2nd quarter 2012 to 3rd quarter 2017 (in U.S. dollars) source:\u00a0<a href=\"https:\/\/www.statista.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.statista.com<\/a><\/em><\/span><\/p>\n<p>The first thing to notice is that,<strong> for US e-commerce sites, AOV has been falling year after year. <\/strong>There are a few ways to explain this trend:<\/p>\n<ul>\n<li>Lower shipping costs have encouraged people to make multiple orders<\/li>\n<li>The e-commerce industry has reached maturity, increasing competition<\/li>\n<li>The rise of marketplaces over the last 10 years has pushed prices down<\/li>\n<\/ul>\n<p>The second thing to notice is that <strong>AOV varies greatly according to industry.\u00a0<\/strong><\/p>\n<p>These variations in AOV are the result of price differences for goods and services: it&#8217;s easy to see the difference in cost between a round trip plane ticket from Paris to New York and a t-shirt. It&#8217;s no wonder that this discrepancy is reflected in the average basket size.<\/p>\n<h2>How Can I (Easily) Increase My AOV?<\/h2>\n<p>There are a few different strategies for increasing Average Order Value.<\/p>\n<p><strong>The overall idea is to invite your website users to buy more, either by increasing the number of items they buy at a time or increasing the price of each item.<\/strong><\/p>\n<p>Whatever method you choose should fit with your industry and sales funnel.<\/p>\n<div class=\"insert-quote-blue\">\n<p>The goal is to create a buyer journey that&#8217;s as natural and full of value as possible, all while encouraging website visitors to spend more.<\/p>\n<\/div>\n<p>Concretely, we would advise you to split your client base into three categories based on frequency (frequent or infrequent buyers) and value (big spenders or small spenders).<\/p>\n<ol>\n<li><strong>High level<\/strong><\/li>\n<li><strong>Mid level<\/strong><\/li>\n<li><strong>Low level<\/strong><\/li>\n<\/ol>\n<p>With your client base organized like this, you can now run campaigns and take appropriate measures that are specific to each segment.<\/p>\n<p>For example, for high-level clients, you could work on a loyalty program that rewards only the most frequent or high-budget buyers.<\/p>\n<h2>8 Tips for Increasing Your Average Order Value<\/h2>\n<ol>\n<li><strong>Upselling<\/strong>. The goal here is to encourage your visitors to purchase a more expensive but related product before checking out.\u00a0 To achieve this, you need to put in place visual cues to convince the user of the product&#8217;s superiority.<\/li>\n<li><strong>Cross-selling<\/strong>. Cross-selling involves visitors adding products to their basket that are complementary with the original item. Once someone has added something to their basket, a good cross-selling strategy will make suggestions for products that go with the first: batteries for a remote control, light bulbs for a lamp&#8230;<\/li>\n<li><strong>Packs<\/strong>. Creating packs of goods or services is a good way to boost AOV. Instead of selling multiple products separately, create packs that are appealing to clients: a 3-in-1 pack of candles that highlights 20% savings when compared to the price of one single candle, for example.<\/li>\n<li><strong>Discounts<\/strong>. The idea is similar to creating packs, except the focus is on the same product. For example, you can offer a 30% discount when you buy 4 or more vanilla-scented candles. You&#8217;ve got a much better chance of having an AOV that&#8217;s higher than the value of a single item.<\/li>\n<li><strong>Free shipping.<\/strong> By putting in place a free shipping policy above a certain amount, there&#8217;s a good chance your clients will fill up their basket enough to get the freebie. This is a common tactic among restaurants that deliver.<\/li>\n<li><strong>Return policy<\/strong>. Even though returns are a real pain for e-commerce merchants, a forgiving return policy, at least for the priciest items, is a good way to reassure clients and boost sales. You increase your AOV in return for reassuring your customers.<\/li>\n<li><strong>Coupons<\/strong>. The idea behind coupons is basically: &#8220;spend $70 now and save $5 with your next purchase.&#8221;\u00a0 The results are twofold: You incite visitors to buy now, and you increase your chances of a future purchase.<\/li>\n<li><strong>\u00a0Donations<\/strong>. By supporting a charity or non-profit, you can donate part of your profits to a cause close to your customers&#8217; hearts. By setting a minimum order value that sets off the donation, you can also increase your lowest AOVs.<\/li>\n<\/ol>\n<h2>A\/B Testing: Make Sure You Increase Your AOV<\/h2>\n<p>If there&#8217;s one problem always bothering e-commerce merchants, it&#8217;s the issue of quantifying changes made to their site.<\/p>\n<p>Let&#8217;s imagine this: you change a few things on your website in the hope of increasing your average order value. You modify the &#8216;Add to Cart&#8217; button and you introduce a new discounted product pack. After a month, you see that your AOV hasn&#8217;t changed.<\/p>\n<p><strong>Question: were the two changes ineffective, or did the negative effects of one cancel out the positive effects of the other?<\/strong><\/p>\n<p>That&#8217;s where A\/B testing comes in (read our <a href=\"https:\/\/wingify.com\/resources\/ab-testing\/\">definition of A\/B testing<\/a>). By distinguishing the analysis of these two changes, you can precisely quantify the positive or negative impacts of changes made to your site. In sum: you can test the performance of each new modification you make, and only keep the best ones.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Calculate and learn more about your Average Order Value (AOV) + 8 tips for increasing this key performance indicator for e-commerce sites.<\/p>\n","protected":false},"author":1436,"featured_media":115643,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"post_read_time":0,"footnotes":""},"categories":[10807],"tags":[10809],"feature":[],"industry-type":[],"product":[],"role":[],"region":[],"class_list":["post-111845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-e-commerce"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AOV \u00bb Calculate and Increase your Average Order Value - Wingify<\/title>\n<meta name=\"description\" content=\"Calculate and learn more about your Average Order Value (AOV) + 8 tips for increasing this key performance indicator for e-commerce sites\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wingify.com\/blog\/easily-boost-average-order-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AOV \u00bb Calculate and Increase your Average Order Value - 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