In the world of ecommerce, every click, scroll, and checkout counts. But the real magic isn't just attracting more customers; it's also encouraging each one to spend more. That's when Average Order Value (AOV) becomes your best ally.
When we first started working with clients on Shopify stores at Medito, we were obsessed with getting people to visit. But we didn't realize until months later that raising AOV could double our client income without bringing in more visitors. That change in thinking made everything different.
We'll go into great detail in this guide about what AOV is, why it matters, how to figure it out, and most importantly, how to raise it using tried-and-true methods. This is the information you need to grow your business smartly, whether you're a seasoned Shopify seller or just starting.
What is Average Order Value (AOV)?
Let's get started with the basics. The average order value (AOV) is the average amount of money a customer spends every time they buy something from your site. It's one of the most important numbers in ecommerce.
Simply put, if your customers usually buy $50 worth of goods each time they buy something, your AOV is $50. You can make more money without spending more on ads if you can get that number up to $60 or $70 by upselling, bundling, or giving people incentives
Why You Should Aim for a Higher Average Order Value
A higher AOV isn't just a "nice-to-have"; it's a way to grow your business. A lot of Shopify store owners spend a lot of money on Facebook or Google Ads, only to find that their profits are very small. But raising the AOV changes everything.
Here’s what a higher AOV gets you:
- Better ROI on ad spend: If you’re spending $20 to acquire a customer, it’s much easier to profit when that customer spends $80 vs. $40.
- Higher margins: When customers add more to their carts, fixed costs like shipping and transaction fees get spread out, increasing your profits.
- Business sustainability: In a world of rising ad costs and platform changes, maximizing each customer transaction is one of the smartest long-term moves.
How to Calculate Average Order Value
Calculating AOV is straightforward, but it’s powerful when tracked regularly. Here’s the simple formula:
AOV = Total Revenue / Number of Orders
For example, if your store made $10,000 from 200 orders last month, your AOV would be:
$10,000 ÷ 200 = $50
This number is a starting point. You can start testing ways to raise your AOV once you know what it is. You'll see that your sales start to rise faster.
You can keep track of this in your Shopify dashboard or use tools like Google Analytics to get more information.
Top 10 Best Ways to Increase AOV
Now for the good part: let's go over the best ways we have used to raise AOV and unlock scalable growth.
But before you use the following strategies in your online store, look at your data closely to figure out why your AOV is low in the first place or collaborate with a Shopify development agency to make use of your data. After that, you can pick the best plan of action. Also, don't use all of these strategies at once because you won't know which ones are working and which ones aren't.
1. Upselling Higher-Value Products
When someone’s already in the buying mood, it's the perfect time to show them a better version of what they’re buying. Upselling works by suggesting a more expensive or higher-end version of the item they want.
For example, a store that sells a journal for $25. 30% of buyers will switch when a $40 deluxe version with extra templates and a hardcover finish is released. There is no need for extra traffic; all that is needed is better product placement.
2. Cross-Selling Complementary Products
Cross-selling is all about showing customers related products that enhance what they’re already buying. If someone buys a yoga mat, why not show them a matching water bottle or resistance bands?
One Shopify trick is to create a “Frequently Bought Together” section on product pages. These subtle nudges can turn a $30 order into a $60 cart with ease.
3. Product Bundles & Kits
Bundles are incredibly effective at increasing AOV while giving customers perceived value. Instead of selling items individually, offer a discounted kit with multiple products.
For example, a skincare brand might bundle cleanser, toner, and moisturizer into a $75 set that’s normally $90. Customers feel like they’re saving, and you boost AOV while moving more inventory.
4. Volume Discounts & Tiered Pricing
Give your customers a reason to buy more with volume discounts. Shopify apps make it easy to show messages like
“Buy 2, get 10% off; buy 3, get 20% off.”
This approach plays on psychology. People want to maximize their value, so they add more to the cart just to unlock the deal.
5. Free Shipping Thresholds
“Spend $75 to get free shipping” is one of the oldest tricks in the book, and it still works very well. You can set your own shipping limits on Shopify, and this strategy encourages customers to keep adding items until they reach the limit.
It’s a win-win: they save on shipping, and you increase your average order size.
6. Limited-Time Promotions & Gifts
Scarcity works. So does urgency. Adding a free gift or discount with a time limit is one of the fastest ways to increase AOV.
For example: “Today only, Spend $60 and get a free tote bag."
7. Loyalty & Rewards Programs
Customers are more likely to spend more when they feel valued. A customer loyalty program is a way to keep customers and build relationships with them. It will encourages customers to spend more to get rewards, which raises AOV.
8. Subscription & Auto-Replenishment
Offering a "subscribe and save" option is a great way to boost your AOV if your product is something people can eat, like supplements, cosmetics, or food. Subscriptions not only add value to the first order, but they also add value to the customer over time.
The AOV may not go up right away, but it will build up over months of regular billing.
9. Smart Product Recommendations
One of the quickest ways to raise your average order value is to personalize it. And AI makes it even easier. AI-powered tools look at a customer's past purchases, browsing habits, and even what's in their cart to suggest the items they're most likely to add, rather than showing every shopper the same things.
The reward is real. Retailers that switch from blanket discounts to personalized promotions can make up to three times as much money as they would with mass promotions.
10. Post-Purchase Upsells
Don't stop at the checkout. On the thank-you page, offer a one-time upsell after someone places an order. This is when people are most likely to buy.
We have seen simple offers after a purchase, like "Add this for just $9," work 15% of the time. It's a simple way to raise your AOV after the first sale.
How to Choose the Right Strategy for Your Store
Choosing the right strategy to increase AOV depends on your product, audience, and price point. What works for a fashion boutique might not work for a tech gadget store. To figure out which strategies will have the biggest effect, you need to look closely at your data, like how customers act, their order history, and the things they buy the most.
Testing is also very important. You should try out one or two strategies, watch how they work, and then make changes based on what you see instead of guessing. Also, think about how your customers will feel; if your methods seem too pushy or pointless, they might not work. The best way to do this is to find a balance between making money and giving your customers value. This way, both your store and your customers will benefit in the long run.
Conclusion
Average Order Value (AOV) is more than just a number; it's a way to grow your business. You can make more money from each customer by learning how to figure out AOV and using the right strategies to raise it.
You don't have to spend more on ads or chase every new marketing idea. Instead, work on making each deal worth more. That's how growth that lasts and makes money looks.
If you have a Shopify store and are stuck, get in touch with us; contact Medito. We might be able to help you increase your AOV. And the best part is your customers also win. They get more value, more choices, and more reasons to love your brand.
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