Boosting your average order value (AOV) and conversion rate can help grow your eCommerce store. Here’s a quick rundown of how to achieve this:
- Increase AOV:
- Offer upsells and cross-sells (e.g., “You might also like” or premium upgrades).
- Create product bundles with discounts.
- Set free shipping minimums slightly above your current AOV.
- Use volume-based discounts (e.g., “Buy 2 Get 1 Free”).
- Automate discounts and offers with Shopify Plus Scripts.
- Improve Conversion Rates:
- Simplify checkout by reducing form fields, offering guest checkout, and enabling quick payment options like Shop Pay.
- Personalise the shopping experience with tailored recommendations and reminders.
- Build trust with security badges, customer reviews, and clear pricing (e.g., AU$1,999.99 inc. GST).
- Provide responsive customer support, such as live chat during peak hours.
Why It Matters
Higher AOV and conversion rates mean more revenue to reinvest in growth areas like marketing, inventory, and customer acquisition. For instance, upselling alone can boost revenue by 10–30%, and smoother checkout processes reduce cart abandonment.
Start by implementing these strategies today to see measurable improvements in your store’s performance.
Ways to Increase Average Order Value
Upsell and Cross-Sell Methods
Upselling and cross-selling are effective ways to increase revenue. Selling to existing customers is far more successful, with a success rate of 60–70%, compared to just 5–20% for new customers. Plus, 86% of shoppers say personalised recommendations influence their decisions. Offer premium upgrades or complementary products to enhance purchases. For example, The Sill uses a “Don’t forget these!” section to highlight plant care products in the cart, while Edloe Finch suggests “You might also like” items on product pages.
Creating Product Bundles
Bundling products can effectively increase order sizes while offering customers added convenience. HiSmile achieved an 80% boost in bundled orders and quadrupled cart sizes with their toothpaste bundle. Similarly, M.M. LaFleur saw a 20% rise in average order value and a 27% increase in items per transaction by offering a capsule wardrobe bundle with a 15% discount on two or more pieces.
Setting Free Shipping Minimums
Free shipping thresholds encourage customers to spend more. Anthropologie, for instance, offers free shipping on orders over A$50. Set your threshold slightly above your current average order value, show customers how much more they need to spend, and suggest products to help them reach the target.
Volume-Based Discounts
Tiered pricing is another way to drive larger purchases. HVMN uses “mix and match” bundles to encourage higher spending, helping them achieve an average order value of A$108.
Shopify Plus Scripts Guide
Automate discounts with Shopify Plus Scripts to make dynamic pricing simple. These scripts allow for various discount types, such as:
| Discount Type | Example Implementation |
|---|---|
| Tiered Cart Value | Larger discounts as cart total increases |
| Volume Pricing | Bigger discounts for purchasing more items |
| Free Gifts | Automatically add a gift when a spending threshold is met |
| Bundle Offers | Automate deals like “Buy 2 Get 1 Free” |
“Successful retail upselling unlocks so much financial flexibility for any brand. But to do it well, you must ensure that the upsold products form a common thread between each product and are first and foremost relevant to what the customer is looking for. If achieved, profitability and value creation for the customer can go hand-in-hand.” – Brandon Park, COO at Win Brands Group
Methods to Improve Conversion Rates
Simplifying Checkout Steps
A smoother checkout process can help reduce the nearly 70% cart abandonment rate. Simplify by cutting down form fields (e.g., from 12 to 8), offering guest checkout, and enabling quick payment options.
| Checkout Element | Impact on Conversion |
|---|---|
| Guest Checkout | Avoids a 34% abandonment rate caused by requiring account creation |
| Multiple Payment Options | Reduces a 7% abandonment rate by accommodating diverse payment preferences |
| Progress Indicator | Builds user confidence by showing how far along they are in the process |
| Auto-address Completion | Speeds up the process of filling out forms |
| Shop Pay Integration | Allows for 1-click purchasing, making checkout faster and easier |
“Abandoned carts are often due to people changing their minds from having to fill out too much information. People want as few steps as possible, and the more streamlined your system is, the less likely they are to rethink their purchase and abandon their cart.” – Ann McFerran, CEO of Glamnetic
The next step is to ensure your content speaks directly to individual shoppers.
Customer-Specific Content
Personalised experiences are no longer optional – 81% of shoppers now expect them. Even minimal transactional data (just 1.6%) can provide insights to tailor content effectively. On average, customers visit a store three times before their first purchase and five times before their second.
For example:
- Unique Vintage increases average order value by showing targeted product recommendations and reminding customers of free shipping thresholds during checkout.
- Cynthia Rowley improves conversions by presenting products aligned with customers’ browsing and category preferences.
After personalisation, focus on creating a sense of trust to encourage purchases.
Building Customer Trust
Trust is a key driver of conversions. Use security badges, payment icons, and customer reviews to reassure shoppers.
“When it comes to the cart and basket pages, it’s important to keep things as simple as possible. Provide a very clear overview of what the user has added to cart and indicate the next step, as well as how they can make changes to their order. Only include custom fields if they are absolutely necessary, since they naturally create more friction for shoppers.”
Customer Support Options
Responsive support can make all the difference. Live chat, for instance, increases the likelihood of purchase by 2.8x and attracts 51% more buyers. To maximise its impact:
- Staff live chat during peak traffic times.
- Display chat availability at key moments in the shopping journey.
- Use pre-chat prompts to guide users.
These strategies helped Sydney So Sweet increase average order value by 21% and reduce cart abandonment.
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Tools to Boost Sales and Conversions
Email Marketing with Klaviyo
Klaviyo helps increase average order value (AOV) and conversions through personalised, data-driven strategies. Trusted by over 167,000 brands, it offers advanced automation and segmentation tools.
Here are two standout features:
- Automated Milestone Campaigns
These campaigns target customers at key moments, encouraging repeat purchases and larger orders. Don Smolik, Made In’s Director of Lifecycle Marketing, highlights its impact:“It’s helped us understand what our data’s telling us, and drive a better customer experience”.
- Customer Segmentation
Klaviyo allows businesses to create highly targeted offers based on shopping behaviour. This approach leads to more relevant communication and higher conversions. Katherine Cabe, AS Beauty Group’s Senior Director of Retention, states:“Having one unified customer profile, where everything about a customer is in the same place – it’s huge”.
While Klaviyo improves customer engagement, Shopify Flow focuses on automating store operations.
Store Automation with Shopify Flow
Shopify Flow simplifies store management with custom workflows designed to enhance sales and efficiency.
- Inventory Management
Flow ensures stock levels are optimised to avoid missed sales. For example, when stock drops below 10 items, it:- Adds a “low quantity” message
- Alerts the fulfilment team via Slack
- Removes sold-out items automatically
- Republishes items once restocked
- Risk Management
Shopify Flow also integrates fraud prevention by:- Cancelling suspicious orders automatically
- Flagging high-risk transactions over AU$10,000
- Reviewing orders with mismatched shipping and billing addresses
These tools not only streamline daily operations but also allow merchants to focus on scaling their business.
Australian Market Adjustments
AUD Price Display
When displaying prices in Australia, use AU$ before the amount, include commas for thousands, periods for decimals, and round to two decimal places. Also, clearly state the GST status (e.g., AU$1,999.99 inc. GST). This pricing format aligns with what Australian consumers expect and ensures clarity.
Australian Market Standards
To meet Australian shoppers’ expectations, it’s essential to follow local conventions such as:
- Using Australian English spelling (e.g., colour, catalogue)
- Providing metric measurements
- Adhering to Australian size standards
- Offering customer support during AEST/AEDT hours
With 66% of Australians cutting back on spending, businesses should focus on strategies that emphasise value, including:
- Showing price comparisons in AUD
- Promoting bulk purchase savings
- Offering loyalty rewards in local currency
- Setting clear free shipping thresholds for Australian deliveries
Local Calendar and Events
Timing is crucial when planning promotions in Australia. Align your campaigns with key shopping events to maximise impact:
| Event | Timing | Impact |
|---|---|---|
| EOFY Sales | 1–30 June | 84% revenue growth year-on-year |
| Click Frenzy | November | 1.5 million visitors expected |
| Boxing Day | 26 December | A major shopping event |
| Black Friday | Late November | Over AU$200 million in online sales |
To handle peak periods effectively, ensure your promotional calendar is well-organised. Provide a seamless shopping experience by managing traffic spikes, clearly communicating shipping times, and preparing for increased demand during these events.
Conclusion
Summary of Main Points
Boosting your average order value (AOV) and conversion rates is key to growing your eCommerce business. Shopify Plus merchants, for example, have seen a 126% year-over-year growth, highlighting the potential for revenue growth with the right strategies.
Here’s how you can achieve similar results:
- Smarter Merchandising: Use AI-driven upsells and cross-sells at crucial decision points to increase AOV effectively.
- Custom Scripts: These can drive a 12% sales lift.
- Localised Pricing: Display prices in AUD with GST included to build trust with Australian shoppers.
- Automated Workflows: Leverage Shopify Flow to streamline processes and improve customer experience.
These strategies are ready to be put into action.
Getting Started
Here’s how you can start improving AOV and conversions today:
- Script Implementation
Begin by using Shopify Plus scripts for features like Gift With Purchase and dynamic checkout upsells. These tools have consistently shown success in increasing AOV and improving profit margins. - Customer Experience Optimisation
Enhance your checkout process to benefit from Shopify’s strong conversion capabilities. Display pricing clearly in AU$ with GST included to reassure local customers. - Strategic Automation
Incorporate AI-powered merchandising and Shopify Flow automation to create a seamless shopping experience. This lets you focus on growing your business while keeping operations efficient.
“Our mission is to generate more sales and provide value” – Alinga
Are you thinking about transitioning to Shopify? Alinga makes transferring effortless, safe, and easy. We manage every aspect, from data and product transfers to design copy and SEO maintenance, so your store operates seamlessly. Don’t allow your fear of technology to restrict you. You can have confidence in Alinga to offer an effortless transition to Shopify and to prepare your business for significant growth. To start the transformation, contact us right away!
