While ecommerce businesses provide a wide array of affordable products, many smaller ecommerce businesses struggle to boost average order value (AOV). Raising your AOV is one of the best ways to grow your business faster while simultaneously reducing customer acquisition costs. AOV is an important metric for any ecommerce business due to its direct correlation with profitability. The lower your AOV, the more difficult it becomes for you to break even on every sale. Fortunately, there are a number of practical strategies you can implement today that will have a significant impact on your ecommerce business in the coming months.
What is Average Order Value?
Average order value is the average price of goods that a typical customer will pay for a product. It is a crucial metric for ecommerce businesses as it reflects the profitability of a business’s sales. Ecommerce businesses with low AOV have a hard time covering their expenses and may eventually go out of business. A low AOV can also negatively impact your brand’s image. Additionally, it can lead to lower employee morale and an increase in employee turnover rate.
How to Boost Average Order Value for Your Ecommerce Business
Now that we’ve gotten the lowdown on what AOV is, let’s take a look at how to boost average order value for your ecommerce business.
– Add More Inventory – When you sell products online, having enough inventory is key to boosting AOV.
– Increase Your Average Sale – Once you’ve added enough inventory, the next step is to increase your average sale.
– Boost Your Price – Raising your product’s price will increase your AOV. – Add More Products – Adding more products to your ecommerce store will increase your average sale.
– Improve Customer Service – Improving your customer service will have a significant impact on your AOV.
– Optimize Your Inventory Levels – If you have too much or too little inventory, it will have an impact on AOV. Improving inventory levels will have a positive impact on your AOV.
Strategies for Boosting Average Order Value
When you’re looking to boost your average order value, you want to make sure to choose strategies that are both effective and practical. That being said, here are some of the best strategies for boosting average order value.
– Use Discounts and Sales – The best way to boost AOV and improve your profit margins is to use discounts and sales.
– Add More Inventory – If you don’t have enough inventory, you won’t be able to boost your average sale price.
– Improve Your Brand Image – An important factor in boosting AOV is to improve your brand image. – Improve Customer Service – Improving your customer service will have a positive impact on your AOV.
-Use a product recommendation engine– AI technology like production rec engines are great for businesses trying to boost their average order value. This is also a great way to engage your shoppers, and hopefully have them coming back to your site more often.
– Optimize Your Inventory Levels – If you have too much or too little inventory, it will have a significant impact on AOV.
– Maximize Your Returns – By calculating your average order value, you’ll be able to identify areas for improvement.
Bottom line
When you’re starting an ecommerce business, it can be difficult to boost average order value. Fortunately, there are a number of strategies you can implement that will have a significant impact on your AOV in the coming months. Boosting AOV is a crucial component of any ecommerce business’s growth, and it won’t take long for it to have a significant impact on your bottom line.
