You need to stop doing this one thing right now. I know it isn't intentional, but you may be seriously harming your bottom line. You're training your customers to wait for sales before they buy.
While it might seem like the easiest way to boost sales, those steep discounts are quietly eating into your profits. So instead of running a bargain store, let me show you how to break that cycle and start increasing your average order value without making your store feel unaffordable. Hey, I'm Tina and I've spent the last seven years working with brands, agencies, and Shopify apps on revenue and marketing strategies that actually move the needle. If you've been following along with our channel, you know we've shared a lot of advice on boosting conversion rates. And if you're seeing more success there, great.
But what if you could make every sale work a little bit harder to improve your bottom line? Here's the thing. If your conversion rate is up 10% but your average order value hasn't changed, or worse, it's dropped.
your profitability is still at risk. For example, if you're selling a $5 product but paying $6 per click on ads, that's a fast way to tank your bottom line even with high conversions. On the flip side, raising your average order value while your conversion rate tanks, that's just dangerous. The sweet spot is balancing conversion rate and average order value to maximize your revenue per session.
That's the ultimate measure of profitability. The biggest challenge is encouraging customers to buy more without compromising on affordability. And increasing average order value is all about creating more value for your customers. The more value they perceive in their purchase, the more they're willing to spend. It's simple math.
So what exactly is average order value? It's the average amount a customer spends per order. The formula is total revenue divided by the number of orders. Translation? Average order value helps you increase revenue without having to drive more traffic.
Today, I'm going to highlight strategies that are rooted in proven psychology and customer behavior. We'll tap into the Gestalt principle, where customers see products as part of a whole, instead of individual pieces. We'll reduce choice overload by curating recommendations that cut design fatigue.
And most importantly, we'll elevate the perceived value of every purchase. In other words, we'll focus on practical strategies to increase average order value without compromising your sales or affordability. And where does it all start?
With bundles. Let's get to it. Tip number one, product bundles that actually work.
When it comes to increasing average order value, product bundles are a fan favorite for a reason. They give customers more value in every order while helping you drive more sales. But here's the best part.
There's no one size fits all approach. Different types of bundles serve different purposes, and what you choose depends on your customer's needs. So Let's dive into a few examples and why they work.
Build your own bundles, let your customers take the reins. Personalization is a huge motivator for shoppers, and this strategy taps into their desire to create something uniquely theirs. Customers also feel in control, which leads to higher satisfaction and bigger carts.
Next is the gifting bundle. Gift giving can be stressful for shoppers, and you can solve that problem with curated bundles designed for easy gifting. Complete with seasonal wrapping or even personal touches.
For example, a Mother's Day self-care set with bath salts, candles, and a custom card from the kids. The Classic Bundle is simple and effective. You can combine complimentary products into a single package to create a convenient shopping experience.
It's straightforward. And perfect for introducing customers to multiple products at once. For example, a coffee shop will probably bundle things like beans, a grinder, and a mug as part of a morning starter kit.
Last is the wholesale bundle. And guys, you don't want to make this mistake. And a little pro tip, create a business that is open to the public. So if you're looking to start a business, you can start with a business that is open to the public. So if you're looking to start a business that is open to the public, you can start with a B2B wholesale landing page.
This makes it easy for your business clients to shop. To choose the right bundle for your store, ask yourself these questions. What type of value are my customers looking for? Is it convenience, savings, or customization? And how can I pair products in a way that makes sense and drives higher cart values?
Finally, which seasonal opportunities can I use to introduce new bundles? Here's what I love about bundles. They make life easier.
Whether it's letting shoppers create their dream combo or offering a no-brainer gift set, bundles just make shopping effortless. And when shopping feels easy and rewarding, customers keep coming back. Tip number two, free shipping thresholds. Everyone loves free shipping. In most cases, customers expect it.
But even if it's an expectation, you can position free shipping in a way that drives up average order value. For example, if your free shipping threshold is $50 and a customer's cart is sitting at $45, they're far more likely to add just a small item to hit that free shipping mark. It's an easy win for boosting average order value without feeling too pushy.
And not to mention, a smart way to cover the cost of shipping. Three easy ways to promote free shipping are, first, promote the threshold everywhere. Make it crystal clear. Add banners to your homepage, your product pages, and to your cart page that say something like, you're X dollars away from free shipping. You can also strategically recommend low-cost items.
Place smaller, budget-friendly products like accessories and add-ons right where customers will see them. Think product pages, cart pages, or in pop-ups. Finally, use checkout reminders. When a customer's cart is just under the threshold, include a reminder like, add $5 to your cart to unlock free shipping.
This is another place bundles are super useful. You can use them to help customers hit that free shipping threshold faster by highlighting curated sets like a starter kit or a mix and match bundle. Not only does this increase average order value, but it also increases the perceived value of a customer's order. Sometimes increasing average order value all comes down to your landing page, so here's the deal.
In the comments, link your bundle landing page, and I'm going to pick a few to do a YouTube short on. I'll give you a personalized critique on What's working? What could be better? And some actionable tips to level up your page. Tip number three, upsells done right.
Now let's talk about upsells. Upsells are all about timing and relevance. When done right, they feel helpful, not pushy. Think about it. When you're offered something that complements what you're already buying, it feels like the store is just looking out for you.
But when it's random or irrelevant... It's kind of annoying. Start by analyzing customer data and patterns. Using your own analytics combined with heat maps and recordings, think Lucky Orange or heat maps, these can help you identify which products to upsell or cross-sell. And of course, talking to your customers is always helpful.
You want to make sure you're providing these upsells at the right time in their journey. There are three key areas in the customer journey to consider upselling. First is pre-purchase upsells.
The best time to upsell is right when customers are most engaged. So while they're browsing or adding items to their cart, you can add recommendations like shop the look or complete your routine directly on product pages. For example, if someone's buying a dress, you can suggest a matching outfit like jackets or shoes or a bag. And if a customer is looking at a moisturizer, why not recommend a toner or exfoliating serum to complete their nighttime routine? The key here is to make the upsell feel natural, like you're just trying to help your customer out, not pushing them to buy more.
One example I love personally is the Gorgias Convert feature. Gorgias is a customer service app that offers a simple way for brands to use live chat on their Shopify website. But with Gorgias Convert, they can upsell directly in those conversations.
So if a customer has been on a product page for, let's say, 30 seconds, the chat window will then automatically pop up and the support agent can then suggest related products like bundles or even a limited time offer specifically for that customer. Next is CartPage Upsells. So when customers review their cart, you can suggest small add-ons or related items. Think a phone case for a smartphone or socks for a pair of sneakers.
The trick here is to keep it super relevant and low effort for the customer. So display the upsell item directly in the cart with an easy one button click to add it. Finally is the post-purchase upsell. So after a customer finally hits that buy now button.
The post-purchase stage is an often overlooked goldmine for upselling. Here the customer's dopamine levels are super high from making a purchase and they're a lot more likely to say yes to an additional offer especially if it's relevant to their purchase and if you feel like using a discount then this is a great place to do it so make sure you're offering something complimentary so if they bought a sunscreen you can offer after sun lotion and then give that 20 discount to drive that sale home that way it doesn't feel like you're asking for more of them you're just giving them more value tip number four Incentivize larger purchases. Sometimes, the easiest way to increase average order value is to simply offer customers more of what they already love.
Offering discounts or perks for buying in larger quantities is a tried and true strategy for boosting cart value, without making customers feel pressured. This strategy works especially well for consumable goods, gifts, or products customers use frequently. One of the simplest ways to incentivize larger purchases is by offering tiered discounts. For example, buy two save 10 percent, buy three save 20 percent, or buy five and save 30 percent. This approach gives customers a reason to stock up while feeling like they're getting a better deal for their money.
The key is to clearly display the savings so customers can see the value of buying more. Another effective strategy is to incentivize purchases above a certain threshold. For example, spend $100 and get a free gift, spend $150 and save 20% on your order, or spend $200 and get free shipping plus a bonus.
item. This approach creates a clear goal for customers to hit, encouraging them to add more to their cart. Display their progress during checkout with a message like, you're $20 away from free shipping. And if you sell products with a longer shelf life, like supplements, then highlight the benefits of bulk.
purchasing. For instance, emphasize how buying in bulk saves time and reduces shipping costs over time. Offer a dedicated stock up and save section on your website where customers can easily find bulk deals.
This strategy is especially important for families or B2B buyers who are typically buying in bulk anyways. By showing customers the value of buying more, whether through savings, convenience, or exclusive perks, you're encouraging them to spend more in a way that feels effortless and rewarding. If you've made it this far, you're You're already equipped with actionable strategies to boost your Shopify store average order value, but the work doesn't stop here.
So what's next? Check out our other videos on increasing conversions and AOV. And as always, if this video gave you ideas or inspiration for your store, hit that like button and subscribe for more tips on growing your business. Thank you for watching and remember.
Small improvements add up to big wins over time. Thanks and see you next time.