In the fast-paced world of e-commerce, businesses are constantly seeking ways to optimize their performance and increase profitability. One of the most critical metrics to focus on for e-commerce success is the Average Order Value (AOV). If you’re wondering what AOV is and why it’s so important, we’ve got you covered.
In this blog post, we’ll explore the significance of AOV and explore three powerful, out-of-the-ordinary strategies designed to skyrocket it for your e-commerce store.
So get ready to dive into AOV and how to increase it for your brand.
Understanding Average Order Value (AOV)
AOV, or Average Order Value, is the average amount customers spend when they shop online. For instance, if you sell t-shirts, and most customers buy just one for $30, your AOV is around $30. But, if you sell high-end jewelry worth thousands of dollars, your AOV is much higher.
Why does AOV matter for e-commerce? Because it directly affects your profits. Higher AOV means more profit after covering product, marketing, and overhead costs. Boosting AOV is a smart move for e-commerce businesses.
Now, let’s explore three simple strategies to increase your AOV.
1. Wholesale Orders
Many e-commerce brands often miss the potential of wholesale selling, which is simply selling large quantities of your products to other businesses at lower prices. These businesses, called resellers, then sell your products to their own customers. This can boost your Average Order Value (AOV) and help your overall business grow.
When you include wholesale in your business plan, you can see a big increase in your AOV. Let’s say you usually sell high-quality t-shirts for $30 each, and your AOV is also $30. Now, imagine you strike a deal with a reseller who buys 50 t-shirts for $1,000.
This deal can have a significant impact on your AOV. It’s not just about money; it can also change how you do business.
One great thing about wholesale is that it can allow you to spend more on marketing. When resellers buy in large quantities, your production costs per item may go down, making your advertising more cost-effective. This financial advantage can make you more competitive, giving you the resources to expand your marketing, improve your products, or explore new markets. This strategic advantage can help your business grow faster, surpass competitors, and gain a bigger share of your industry.
2. Group Orders
Increasing your Average Order Value (AOV) can be simple and effective when you encourage group orders. These group orders often come from various sources like sports teams, church groups, and hobby clubs, who need products in bulk for their members. To make the most of this opportunity and enhance your AOV, ensure that your e-commerce store clearly states that it welcomes group orders.
To motivate customers to place larger group orders, consider offering them incentives, such as discounts or extra items. These perks can be powerful motivators, encouraging groups to make bigger purchases from your store and building loyalty among them.
Making the group ordering process easy is crucial. Provide straightforward instructions and, if possible, create online forms dedicated to group order submissions. This user-friendly approach can significantly boost the chances of groups choosing your platform for their orders.
An added benefit of catering to group orders is the potential for growth through word-of-mouth. Group leaders and coordinators often influence the buying decisions of their members. By impressing these key individuals with your group-order-friendly policies and attractive incentives, you can expand your customer base as they may continue to order and recommend your store to others in their network.
3. Custom Orders and Products
One way to increase your Average Order Value (AOV) is by offering custom products or personalized services tailored to specific customers. This approach works especially well for businesses with unique or artistic offerings.
For instance, if your business specializes in creating custom artwork on apparel, consider targeting high-net-worth individuals or companies looking for exclusive designs.
By offering customized products or services at a premium price, you can significantly boost your AOV. Customers who are willing to pay more for personalized items value the uniqueness and quality of your offerings.
This approach transforms your e-commerce store from selling ordinary items to providing bespoke, high-value products. It sets you apart in the market and attracts customers who appreciate the individuality and craftsmanship of your custom offerings.
Offering custom products and personalized services can build a stronger connection with your customers. They feel valued as you cater to their unique needs and preferences, which can lead to repeat business and loyalty, ultimately increasing your AOV over time.
To make this strategy work, focus on marketing efforts that highlight the exclusivity and quality of your custom products. Showcase past projects, emphasize the skills of your artisans or professionals, and tell compelling stories that resonate with your target audience.
Promoting Your AOV-Boosting Strategies
To put these strategies into action effectively, make sure they’re prominently featured on your e-commerce website. You can create separate pages for wholesale, group orders, and custom products. If you’re using platforms like Shopify, you can explore apps that simplify these processes, like setting discounts based on the quantity purchased.
Additionally, consider developing forms to gather essential information from potential wholesale clients or group organizers. Collecting this data will enable you to provide accurate quotes and personalized service, increasing your chances of converting these prospects into customers.
By integrating these three strategies into your e-commerce business, you can achieve significant results. Rather than solely relying on individual product sales, you’ll tap into the potential for more substantial and profitable transactions. Ultimately, a higher Average Order Value (AOV) translates to increased revenue and a more successful e-commerce venture.
Rapidly Increase Your AOV with Our 3 Sneaky Ways to Increase Your AOV
Give these strategies a try for your brand and monitor the impact on your AOV. Remember that every business is unique, so tailor these approaches to suit your specific needs and target audience. With dedication and creativity, you can take your e-commerce store to new heights of success.
Want help taking your e-commerce store to the next level? Click here to learn more about Brandhopper Digital and see if your business is a good fit to work with us!