- AOV measures how much a customer spends per order. It’s simple to calculate: Total revenue ÷ Number of orders.
- Why it matters: Higher AOV increases revenue without needing more traffic. Top Shopify stores achieve AOVs of A$192–A$311, compared to the average of A$85.
- Key strategies to boost AOV:
- Upselling and Cross-selling: Offer related products or upgrades (e.g., discounted upsells work best with 10–30% discounts).
- Product Bundles: Combine complementary items (e.g., HiSmile quadrupled cart size with bundles).
- Free Shipping Thresholds: Encourage bigger purchases by setting thresholds (e.g., A$25 instead of A$40).
- Checkout Optimisation: Use tools like Shopify Scripts for dynamic pricing and personalised offers.
- Analytics: Track AOV trends, customer cohorts, and seasonal spending to refine strategies.
Quick Tip: Bundling and free shipping thresholds are particularly effective in the Australian market, where customers value perceived deals and practical pricing.
Want to learn how these tactics work in real stores? Keep reading for examples and actionable advice.
Top Methods to Increase AOV on Shopify
Upsell and Cross-sell Techniques
Upselling and cross-selling are proven ways to increase revenue. Data shows that automated upsells convert at 3.8%, compared to 1.56% for manual upsells. The trick is to integrate these offers naturally into the shopping experience without overwhelming customers.
Place upsell offers strategically on product pages or in cart drawers. A good rule of thumb is the “25% rule” – keep upsell prices within 25% of the original purchase.
“The more consistent the offer is with the purchase flow, the less suspicious is the customer and the more likely they are to agree on the deal.”
Discounted upsells work particularly well, generating 80% more revenue per offer. Discounts in the 10–30% range tend to perform best. For example, Shopify expert Hayden Bowles used smart upsell placements to generate over A$73,000 from a single store.
Creating Product Bundles
Product bundles can significantly increase AOV. HiSmile, an Australian teeth-whitening brand, achieved an 80% bundle order rate and quadrupled their average cart size by offering attractive bundle deals.
Another example is Coconu, a natural intimacy product brand, which saw a 20% increase in AOV through carefully curated bundles. Their success lies in combining products that genuinely enhance each other’s value.
| Bundle Strategy | Impact on Business |
|---|---|
| HiSmile Multi-flavour Bundle | 4x increase in cart size |
| Coconu Product Bundles | 20% increase in AOV |
| Maev Dog Food Bundles | 15% increase in AOV, 20% more units per transaction |
“Oddly enough, curated product bundles can seem like a deal to consumers even when they aren’t saving them any money. They help the customer feel like they’ve got a great deal while boosting the average order value.” – Elise Dopson, Shopify
Bundling is even more effective when paired with tactics like adjusting free shipping thresholds.
Free Shipping Thresholds
Setting free shipping thresholds is another way to nudge customers toward spending more. The key is to find a threshold that encourages higher purchases without turning customers away. QALO, a jewellery brand, found success by lowering their free shipping threshold from A$40 to A$25. This small adjustment, based on customer data, led to a noticeable increase in AOV.
To make free shipping thresholds work for you:
- Use progress bars to show how close customers are to free shipping.
- Recommend products that help customers reach the threshold.
- Set achievable thresholds based on your average product prices.
- Experiment with different thresholds to find the sweet spot.
These strategies, when used together, can make a big impact on your Shopify store’s performance.
Shopify Plus Tools for AOV Growth
Checkout Page Optimisation
Enhancing your checkout process can help increase Average Order Value (AOV). Here are some examples of how Australian retailers have improved their checkout experience:
- Kopari Beauty: By adding address autocomplete based on geolocation, they sped up the checkout process. Rewards program members also benefit from pre-filled checkout fields, making the experience smoother and faster.
- Merchology: They use Shopify Scripts for dynamic pricing. Prices adjust automatically when customers change product sizes, quantities, or add related items.
- Peau Productions: Their use of Shopify Scripts allows cart totals to update instantly when customers add extras like warranties or expedited processing. This transparent pricing approach builds trust and encourages larger purchases.
“Good design can be seen but, it’s great design that can be felt. Although customized fonts and breadcrumbs on a check-out page seem simple — it’s the implication of ‘great design’ — it converts customers, and strengthens the user’s experience and your long-term relationship with them.” – Cory Cummings, Lead Developer, BVAccel
These changes not only improve the checkout process but also set the foundation for making smarter, data-driven updates.
Using Analytics to Track Results
Pairing checkout improvements with Shopify Plus analytics can provide valuable insights. Here’s how you can use analytics to guide your strategy:
| Metric Category | Key Insights | Action Items |
|---|---|---|
| Basic AOV | Current average: A$85 industry standard | Compare against top 20% (A$192+) |
| Performance Tracking | Year-over-year comparisons | Spot seasonal trends |
| Customer Cohorts | New vs returning customer spend | Focus on high-value customer segments |
Top-performing Shopify stores often achieve an AOV of A$311 or more. To work towards this benchmark, consider:
- Reviewing the Average Order Value Over Time report to identify successful sales periods.
- Examining customer cohort data to learn about retention and spending habits.
- Using the Customers over Time report to track how new and returning customers behave.
AI-driven personalisation has also proven effective, with businesses seeing AOV increases of 10-50% through targeted product recommendations. For instance, The Edit LDN reduced customer support costs by 88% while keeping shopping experiences personalised.
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Customer Success Examples
Increasing average order value (AOV) plays a key role in boosting revenue. Below are examples of how targeted merchandising strategies have delivered measurable outcomes.
Bundle Offer Results
Beardbrand showed how bundling products can effectively increase AOV. In Q4 2020, they introduced “The Ultimate Grooming Bundle”, which included 11 grooming products (across 9 SKUs) typically priced at A$336. The bundle was offered at A$252 and came with a lifetime membership to the Beardbrand Alliance, valued at A$90. This bundle led to a 19% rise in AOV for customers who opted for the deal.
“In-store, you shop by section, by brand or fragrance, not by individual product. Shogun allowed us to do that quickly and in-house.” – James Wilson, Growth Marketing Manager, Beardbrand
Other strategies, like checkout upsells and on-page cross-sells, have also proven effective in driving AOV growth.
Checkout Upsell Impact
An Australian Shopify store implemented a two-tier discount strategy at checkout to encourage larger purchases. The offer details were:
| Discount Tier | Spend Threshold | Discount |
|---|---|---|
| Basic | A$45+ | 10% off |
| Premium | A$90+ | 20% off |
This approach resulted in AOV doubling from A$28 to A$55.60 within just 24 hours.
Another merchant used cross-sell promotions placed below the “Add to Cart” button. This tactic boosted AOV by 27%, increasing it from A$11 to A$14. The change generated an extra A$900 in monthly revenue and an additional A$10,000 annually.
Australian Market Considerations
The Australian market requires tailored strategies to increase Average Order Value (AOV). Changes in consumer habits and the economy create new opportunities for pricing and merchandising adjustments.
AUD Pricing Tactics
Australian shoppers respond well to pricing strategies that offer clear advantages. Here are some effective approaches to boost AOV in AUD:
| Pricing Strategy | How to Apply | Impact on AOV |
|---|---|---|
| Value Pricing | Bundle related products to enhance perceived value | Improves value perception while maintaining margins |
| Premium Pricing | Promote high-end items with perks like free express shipping | Encourages larger purchases |
| Tiered Discounts | Offer increasing discounts for higher spending levels | Motivates customers to spend more |
It’s important to find a balance between production costs and customer-perceived value. These strategies align with the specific shopping behaviours of Australian consumers.
Australian Customer Preferences
Beyond pricing, understanding the habits of Australian shoppers is crucial. Research shows that Australians are value-conscious and expect excellent service to justify higher spending.
To effectively increase AOV:
- Bundle products to match seasonal needs, like outdoor gear in summer or wellness products in winter.
- Set free shipping thresholds to encourage customers to add more to their carts.
- Time promotions around major Australian shopping events like EOFY and Boxing Day to maximise spending.
Focusing on overall value helps build customer loyalty. Australian shoppers often stick with brands that offer well-rounded solutions and high-quality service. This creates an opportunity to increase AOV by grouping products strategically and improving the shopping experience, rather than relying solely on discounts.
Conclusion: Implementing AOV Strategies
Boosting your Average Order Value (AOV) requires a structured approach. Data shows that the top 20% of Shopify stores hit an AOV of A$192 or more, highlighting the potential for growth through smart merchandising choices.
One effective tactic is adjusting your free shipping threshold. For example, QALO lowered theirs from A$40 to A$25, aligning with typical customer spending, and saw immediate results.
Product bundling is another great way to encourage higher-value purchases. BestSelf Co. uses bundles of 3–5 items, constantly testing combinations to find what works best.
Personalisation also plays a big role in Australia. BeautyBio’s product recommendation quiz increased their AOV by 28%, thanks to better customer segmentation and tailored offers.
“Increasing AOV is something all brands strive to do. It helps to negate the cost of advertising, goods, overhead, paid media dollars, and helps brands be more profitable per order.” – Nik Sharma, Founder, Sharma Brands
To recap, here are four ways to enhance your AOV:
- Adjust free shipping thresholds to encourage larger orders
- Experiment with product bundles for higher-value transactions
- Use personalisation tools to target customer preferences
- Track your AOV against industry benchmarks for ongoing improvement
These strategies, when applied thoughtfully, can drive higher revenue and profitability.
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