What is easier to sell to $20 to $1000 customers and to $1000 to $20 customers? Of course, it depends on the product. But the idea behind this problem is that if you can increase the revenue per order, you don’t have to sell a lot in order to create the same revenue. If you can increase the average order value while keeping the number of orders unchanged, your revenue will surge. What is the average order amount? The average order amount or AOV is related to total revenue. Regardless of cost. If you get $10000 in sales through 76 orders, the average order amount is $131.58. The formula is as follows:
Total sales divided by the number of orders = average order amount. Now one thing to consider is the price change between products. If most products are in a similar range, use the formula. But suppose you sell a range of products at normal prices, and then sell a luxury, boutique or custom product range at a higher price. Since each product line is likely to use different tactics, it can be considered to calculate the average order amount of each product. In this way, the impact of efforts can be measured more accurately. Why is the average order amount important? The more money, the better for business. But in addition, please consider other methods that are helpful to the business, such as higher average order size.
Higher profits. Assuming that the cost is fairly constant, increasing the average order value by $1 is basically a net profit. Higher inventory movements. Selling more inventory faster is always good for the business. In order not to overstock inventory, we hope the product will be healthy. Faster profitability. If you have business liabilities or invest a lot of money in marketing activities, you can get a positive return on investment faster through higher AOV. 9 ways to improve the average order value 1. Raising prices is the most neglected but simplest way to make more money per sale. Of course, be careful. Consider how many products to add. If the customer base is loyal to buying the same product according to the business, they may find that the price increases and be unhappy.
But please take this into account. Assuming that the product sells for $20, about 100 are sold every month. A gain of $2000. Suppose the price increases to $22.95. Then, some customers will go to other places upset, and then sell only 90 a month. Finally sweating, the revenue rose to $2065. Considering the cost of packaging and distribution, buying fewer orders at a higher price will also reduce the cost. Therefore, do not ignore this proposal. If you are satisfied with your products and services, most customers will join you.
2. As an effective method, additional sales can be carried out in a variety of ways, but the idea is to make use of the positive experience of customers to make customers spend more in other aspects. Here are some good up sell strategies: Sell up high-quality versions of the same product – sell up through premium model and luxury membership – buy a monthly subscription and get monthly revenue. As a special discount proposal, you can sell up on the audit page, during the customer’s shopping period, during the checkout period, on the post checkout audit page, or in subsequent emails. Everyone is worth trying what is best for him. Please refer to 7 types of upsell related extensions to help expand the average order size.
3. Among many products recommended by addon, as long as you pay a few more dollars, you can provide small additional functions on the settlement page. Or, even if the product is mostly independent, it can provide additional functions, such as gift packaging or discounted gift cards.
Like many other strategies on the list, everyone is happy, so everyone will win. This method can then be layered$ For orders above 250, a discount of $30 is offered. Then, for orders above $500, enjoy a $50 discount. 9. It is recommended to pay the plan at a higher price. If some people can pay according to time, they can choose the advanced version with a higher price. PayPal offers a variety of buy now and pay later options to handle all heavy tasks. Customers can make 4 equal payments or buy a larger amount with PayPal credit. On either side, the store owner will pay the full amount in advance, so we suggest they eliminate the risk and add more to the shopping cart. Set it up using the PayPal checkout extension. Without looking for new customers, the easiest way to increase the revenue of the store is not to launch new products or launch wonderful new marketing activities. Increasing the average order value per sale can increase revenue without adding an additional customer. hot wire? There are many successful combinations that are good for you and your customers. Please consider your excellent experience. This will not only increase today’s revenue, but also ensure that loyal new customers continue to visit.
