How to increase your store's AOV (average order value)?

Q: How to increase your store's AOV (average order value)?

To increase AOV: offer bundles, set a free shipping threshold 20% above current AOV, add upsell/cross-sell, create discount tiers and personalize recommendations. A 10% AOV increase raises revenue by 10% with no additional acquisition cost.

Detailed explanation

AOV (Average Order Value) is the average amount spent per order. Increasing AOV is one of the most profitable levers in e-commerce because it amplifies your revenue without increasing customer acquisition cost. A 10% AOV increase equals a 10% revenue increase, directly impacting net margin since fixed and acquisition costs remain stable.

The first strategy is the free shipping threshold. Set it about 20% above your current AOV. For example, if AOV is 50 EUR, offer free shipping from 60 EUR. Customers will add products to reach the threshold. This technique is extremely effective: it can increase AOV by 10 to 25% depending on category, with powerful psychological effect.

Bundles and discount tiers are also very effective. A bundle that groups multiple products with a small discount showcases the offer while increasing volume per order. Tiers like buy 3 get 15% off encourage multi-buying. Cross-sell (complementary products) and upsell (premium version) on the product page and at checkout convert particularly well if relevant.

Finally, personalizing recommendations is an under-used lever. Use purchase history, browsing behavior and RFM segments to suggest truly relevant products. A well-calibrated recommendation engine can generate 10 to 30% additional revenue. Combine this with time-limited offers (urgency) and social proof (x people bought this together) to maximize conversion.

Concrete example

A store has AOV of 55 EUR and 2,000 orders/month, i.e. 110,000 EUR of revenue. It implements: free shipping at 70 EUR, a 3-product bundle at -10%, and personalized recommendations at checkout. Result after 3 months: AOV at 67 EUR (+22%). With the same order volume, revenue jumps to 134,000 EUR, i.e. an extra 24,000 EUR monthly with no additional ad budget.