Which is easier: sell to 1,000 customers at $ 20, or at $ 1,000 The price is sold to 20 customers? Obviously, this depends on the product. But the idea behind this problem is that if you can increase the income of each order, then you don’t need to sell as much as possible to generate the same profits.
If you can keep the number of orders unchanged while increasing the value of the average order, your profits will soar.
What is the average order value?
Average order value or AOV is related to total income. It does not consider the cost. If you get a sales of $ 10,000 from 76 orders, your average order value is $ 131.58. The formula is:
Total sales Except for the value of order \u003d the average order value
Now, one thing to remember is the price difference between your products. If most of your products are hovering in a similar range, you only need to use formulas.
But assuming that you sell a product series at a typical price, and then sell luxury at a much higher price price. Product, boutique or customized series of products. Since you may adopt different strategies for each product line, you may consider calculating the average order value of each product line. You can then measure your efforts more accurately.
Why is the average order value important?
More money is better for enterprises. But in addition, please consider other ways to help your business with a higher order scale:
higher profits
. Assuming that your expenses remain quite stable, then every dollar that increases the value of the average order is basically pure profits.
higher inventory loss.
Fasting more inventory is always beneficial to enterprises. You want the healthy outflow of the product to prevent inventory accumulation.
Fast profitability.
If you have commercial debt, or spend a lot of money in marketing activities, you will get a return on investment faster through higher AOV.
Nine ways to increase the value of the average order
1. Increase your price
This is the easiest to make more money for each sales.The easiest way to be ignored. Of course, you must be careful. Consider which products should be added and how much. Depending on the business, if you have a group of loyal customers to buy the same product over and over again, they will notice that the price is rising and may not be excited.
But consider: Assuming that you sell a product at $ 20, and your monthly There are about 100 sales. It was a $ 2,000 income. Suppose you increase the price to $ 22.95. Then, some customers were angry and turned to other places, and then you only sold 90 each month. In the absence of sweating, your income still reaches $ 2,065.
When you consider packaging and transportation costs, buying less orders at higher prices will also lead to lower costs. So don’t ignore this suggestion. If most customers are satisfied with your products and services, they will insist on using you.
2. Added additional sales in an effective manner
Additional sales can be completed in various ways, but the idea is to use the positive experience of customers to make them spend a little more money in other aspects.
Some good additional sales strategies include:
A higher quality version of the same product -luxury version, luxury version
– 让他们购买每月订阅，您将获得每月收入
在感谢页面上追加销售并提供特别折扣
您可以在客户购物时、结帐时、 After paying on the page of thanks, even additional sales are provided in subsequent emails. It is worth trying to see what is best for you. Check out seven extensions related to additional sales to help increase your average order scale.
3. Recommended plug -in For many products, you can at the checkout page on the checkout page Provide some small additional components, just spend a few more dollars. Or, even if your products are mostly independent, you can also provide additional products such as gift packaging or discount gift cards.
In many cases, small upgrades such as customization, color preferences and additional functions are simple and fast purchase decisions that your customers will like. These additional components can become a good business with only a few more dollars.
If your average order is worth $ 25 and you sell 500 items per month, it is $ 12,500 per month. If you canThis average increases to $ 27 -only $ 2 more -you now earn $ 13,500.
Use the product additional component expansion. You can easily add custom fields, check boxes, drop -down lists, etc. to your product page. Customers can quickly choose how they want to customize orders, and the price will be automatically changed according to your settings.
4. Use a product package Many companies sell their naturally related products. Whether you sell outdoor equipment, health products, books or online courses, you may sell complementary products.
Therefore, creating some products bundled bags, and provided them with a slightly lower price paid when buying separately than customers. Customers are reaching a transaction, and you are selling greater sales and transferring more inventory. If your product is difficult to sell alone, binding it with some popular products is a good way to reduce the backlog.
Expand through the Product Bundles, you can provide a personalized selection and mixed box (such as a mixed chocolate package) to assembly products (such as the drums containing multiple projects) All content. Alternatively, add \”often buy together\” suggestions to increase order value in a simpler way.
5. Sales personalized collection
These are similar to product bundling packages, but here, you can let customers choose the products they want. Usually, what you have to do is set up the minimum purchase price or the minimum number of items.
This method is usually natural. Combined with the strategy, you can provide subscription as an additional sales after the customer chooses to choose the collection of collectibles they want for the first time. This is just another settings that you can use the Product Bundles to expand to your site. 6. Selling products in the form of a kit Similar to the personalized series, a kit will contain a variety of separate products. These products are combined together to create the final version. I want to build my own shack.
By allowing customization in these kits, you can increase the total number of orders by providing components exceeding basic components.
View the composite products extension to make the sales kit easier and simple. Although similar to pRoduct Bundles extend, but if you want the customer to combine multiple products, each product has multiple variants, which is a better choice. Therefore, in our example, people who purchase shacks may choose the roof, door style and body wooden surface.
7. Provide free delivery services exceeding the setting value The freight is very very ship We are expensive, no one -including you -like to pay. Therefore, instead of providing free delivery services for everyone, it is better to provide delivery services for orders that exceed a certain value. The best strategy here is to set the amount to your average order value. Consider the freight you expect to pay and set the benchmark value to the additional amount. For example, assuming your average order size is $ 50, the average shipping cost is about $ 10. Provide free delivery services for all more than 75 US dollars. With this, you will inspire some people to spend a little more money to overcome this difficulty, even after paying the freight, you will still increase profits. 8. Provide a higher threshold discount
Similar to the idea of \u200b\u200bfree delivery, providing discounts for all purchases over a certain amount. Third, make this amount higher than your average order value. For example, if the purchase price exceeds $ 100, it will provide a discount of $ 20.
For those who plan to spend $ 60, they will like to spend only 20 more dollars, but The idea of \u200b\u200bobtaining a $ 100 product. Like many other strategies in this list, everyone is very happy, so everyone has won.
Moreover, you can layer this method. Orders above $ 250 can enjoy a discount of $ 30. Then, an order of more than $ 500 can enjoy a discount of $ 50. 9. Provide a higher price payment plan If they can pay the payment fee over time, some people may choose higher -level high -end versions of products. PayPal provides several options for current purchases, and future payment options, which can handle all heavy tasks. Let customers use PayPal credit to pay four times or provide funds for greater purchases. In any way, the owner will get full fees in advance, thereby eliminating your risks and encouraging customers to add more products to their shopping carts.
Use the PayPal checkout expansion program for settings.
Increase income without looking for new customers The easiest way to increase store income is not to launch new products or carry out novel marketing activities.When you add the average order value of each sales, you can increase income without adding an additional customer. Good news?There are many good combinations of winning for you and .Putting your outstanding experience in the first place, you will not only increase today’s profits, but also get new and loyal customers. They will come back again and again.
These are similar to product bundling packages, but here, you can let customers choose the products they want. Usually, what you have to do is set up the minimum purchase price or the minimum number of items. 