E-commerce — Reduce Churn, Increase AOV

Sep 12, 2019 · 3 min read

As an e-commerce shop, you need to keep coming up with new ways to increase your revenue. But it’s a common misconception that you need to find new customers to generate more sales. Rather than trying to get more transactions on your e-commerce site, you should be focusing on tactics that increase the amount of each transaction.

Average order value = Total Revenue / Number of Order Taken

Here are few tips on how to bump up the AOV of your eCommerce business:

Set a minimum for free delivery- Free delivery has a major impact on e-commerce conversions. In fact, 60% of consumers will abandon their shopping carts during the checkout process if they’re presented with extra costs, such as shipping.

Offer discounts on minimum purchase- Tell your customers that they will get the discount on a minimum purchase of $50 or $100 or whatever figure sufficiently make up for your lost margins in giving that discount. Give some, take some.

Always give limited period offer- Shoppers tend to procrastinate and mull purchase decisions. To continue our above example, adding a limited duration to the offer can create a sense of urgency among visitors and encourage them to buy more in one go.

Offer package discounts- Bundle or package discounts provide an incentive for customers to spend more money. The concept behind this tactic is simple. You can generate more profits by focusing on your pricing strategy. Most pricing models make it more expensive to buy a single item.

Show them cross-selling options- Soft selling complementary or additional products to a customer. A person buying a laptop will need a laptop bag, not necessarily a DSLR.

Incentivize the purchase- Always give something to the customer and they will merrily return the favour. Whenever they make a purchase, either give them reward points through a loyalty card, gift vouchers or a cashback offer. Anything that is redeemable on their next purchase of a minimum order value.

Try volume discounts- Offer discounts on bulk purchases of the same product. You have to determine the right discount value that attracts customers and at the same times doesn’t throttle your profit margins. Charge more for personalized items-If you can figure out how to apply this concept in your business, it can result in a major revenue increase. That’s because consumers say they are willing to pay 20% more for personalized products.

Use BOGO- BOGO stands for “buy one, get one.” The reason why BOGO works so well is that it encourages people to spend more money. For example, “buy two, get one” free would encourage people to spend even more money. Either way, this strategy can help you increase your average order value.

Give cash back- Creating a cashback system on your e-commerce site will give people an incentive to spend more money. The more money they spend, the more cashback they’ll receive. Ultimately, they’ll benefit from these rewards as much as you will. It’s a win-win scenario for everyone.


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