Recently, a prospective e-commerce client asked us for advice on how to go about increasing their average order value.
It’s a great question, and with 2015 holiday season planning quickly getting underway, it’s something every Internet retailer should be thinking seriously about.
So how do you do it? Here are four simple ideas to get you started right away.
1. Offer Free Shipping—At a Certain Price Point
Shipping costs are one of the leading reasons attributable to shopping cart abandonment. Consumers spend all this time shopping around the site only to abandon the purchase at the last minute because of the high cost of shipping. Save the sale and increase the average order value at the same time by implementing a Free Shipping offer that triggers at a certain price point.
2. Bundle Like-Products at a Discount
Think about the items you sell that naturally fit with other items you sell. The consumer who just put a climbing harness into their shopping cart might also need some carabiners, climbing shoes and a chalk bag to go with it. Offer like-products, but incentivize the additional purchase with a modest discount (just make sure to check with your finance people about keeping the offer profitable).
3. Take Advantage of Small Upsell Opportunities
Imagine if you increased every order by just $1 per purchase. Small strokes fell large oaks—small upsell opportunities (like add-on fees for gift wrapping or offering helpful items related to the purchase during checkout) can pay off big in the long run.
4. DIY Couponing
Modern consumers love to be in control of their own destinies. Consider providing a DIY option for couponing—put the ability to customize a discount into the hands of your target audience. Of course, you’ll need to be smart about setting certain parameters (the element of “control” is only as palpable as you intend to make it), but as long as the customers feel like there is some degree of control, they’ll be more willing to play along.
Each of these tips shouldn’t take much effort to implement, but time is of the essence if you intend to capitalize on this year’s holiday season. Think carefully around the ways you can execute one of the ideas above and reap the benefits later.