#1 Independent Seller of WooCommerce Plugins

< Back to blog

Level up your storeLevel Up your store: what is AOV and how to increase it?

AOV stands for Average Order Value and it is calculated by your total revenue through your e-commerce website divided by the number of orders.

For example, if your total revenue is $10,000 and you have 100 orders, the AOV is $100.

Marketers often use this value to calculate the cost for marketing per order, return on investment (ROI), and other measurable goals based on promotional activities. So, why does it matter and how can you increase it?

Apart from the obvious of making more revenue, many shops offer free shipping. To get a higher profit margin per shipped order, you can decrease the shipping costs or increase the value of the order.
Also, what is often overlooked, that it’s good customer service to offer complementary or alternative products and saving them to shop around. Just like you would expect when visiting a brick and mortar store and an assistant is helping you, not everything is visible to a visitor without searching in your store, or worse, going to a competitor’s site. The main reason is that if done right, it offers value to the customers. And when they feel they get good value, they will come back to buy more and tell friends about their experiences. This all seems so straightforward and simple, and it should be, yet most shops don’t pay attention to this.

We’ve come up with three solutions that can help you increase the AOV. Of course, there are many more ways, but these seem to be tried and tested methods that most of the bigger e-commerce stores apply.

Complete the package with Bundling Products

To start with, we take a look at creating product bundles to offer a complete solution to the customers. One of the most straightforward examples is a camera, skateboard, or a bed in the example screenshot where you select the frame (color and size), the bed base, and a mattress.
This is probably the easiest way to increase the average order value. Not only do you offer more items to add to the basket in one go, but you can also sell them at a better price compared when buying them individually. This will give the user a sense of ‘getting a good deal’.
But put yourself in the shoes of the buyer… and you quickly realize this is also good service. When you go to a physical store you often see key-products surrounded with additional products to complement this.
Buy a curry sauce and you will see relishes, poppadoms, side dishes right next to it… often supported by a deal. ‘Buy any 4 and get 20% off’, for example. Customers often think in ‘solutions’ like ‘a new bed or room make-over’, ‘cooking an Indian meal’ and buying a surfboard to go surfing this weekend.
You can replicate this on your WooCommerce store quite easily with YITH Product Bundles for WooCommerce. This plugin allows you to create one product that consists of several other simple or variable products to make up one bundle.

An example of a more complex set up of 3 products with variations

Sometimes, you want to offer different styles, sizes, or colors within the same bundle. Add variations to the product bundle and give more options without the need to navigate to a different product. A user can customize the product bundle and clearly see the total (and savings) before adding them to the basket in one action.

The highest chances of conversion are when you offer a discount that applies when you add the full bundle to your order… you can even combine it with bonus points that can be used as a reward and create a loyal customer – for this, you need to have YITH WooCommerce Point and Rewards activated.
The options of creating bundles are limitless – consider them as a landing page or create a separate menu item to direct customers to these saving-bundles. For products that can complement another product without making this part of a bundle, you can utilize ‘frequently bought together’

Suggestive selling showing Frequently Bought Together

Probably the best-known example is shown here from Amazon 

Not only can you show what other users bought when they purchased this product, but it can also help in navigating and suggesting alternative or complementary products. Not everyone is familiar with your product-range and many items just don’t get the same exposure or ranking on Google as others. As standard, the shop’s catalog is arranged by ‘date listed’ or a user can change this by lowest price first, etc. So without changing the menu order, publishing date, the older products will get less exposure over time.
Creating a section on your product page and share complementary products makes total sense. With the flexibility of YITH WooCommerce Frequently Bought Together, you can take advantage of many features like setting your own rules to suggest products, ‘add all to cart’, adding a discount when purchased together, and many more.

One of the options: ‘add a discount rule to encourage buying all three products at once.’

We have discussed two ways to sell more products than what the user most likely wanted to buy in the first place when they Googled ‘Fujifilm Instax’. We’ve tempted them to buy a cover and some films. Instead of the order value being $54,89, we have raised this to $80,07. An increase in AOV of almost 60%.
But there are more ways to encourage the user to buy more and dynamic pricing offers the flexibility to set up any type of pricing incentive.

Offer a better price when buying more, using Dynamic Pricing

Buy one get one free, buy 5 and save $20, ‘free shipping’, and so on… research has shown that when using certain keywords like ‘free’, ‘save’ or ‘discount’ this will get your attention, and the ability to think rationally quickly leaves you. Everyone wants to feel they are getting a good deal and possibly a bargain. Using this psychological phenomenon is something most bigger retailers use all the time to drive up sales. Knowing this, why not copy this and apply this to your own store? It is incredibly easy to implement and once you’ve set the rules and promotions, you can see your revenue increase.

As shown in the example, the plugin allows you to set different pricing rules and offer a discount based on quantity bought. This can really help convince your users to buy one more in order to qualify for the extra discount.
You can also set different pricing discounts for members as described in this blog post and how you can set up a Prime Service like Amazon.

This is an example of how you can be more creative in offering promotions and increase the customer’s spending.

Next time you are visiting your local supermarket, take a look at the number of similar promotions and deals to increase the number of items in your shopping basket. No doubt you can learn a few tricks and apply these to your WooCommerce Store.

How do you measure success and increasing AOV?

Assuming you have connected Google Analytics and also e-commerce tracking, this is remarkably easy to do.

Go to: Google Analytics > Conversion > Ecommerce > Overview and select a comparable time period.

When comparing a set period, make sure you keep seasonal trends in mind or variations like the number of weekends in that period.


Do you want to level up your WooCommerce store with YITH?

No doubt that investing some time in implementing the solutions as suggested to increase AOV, will be one of the best and easiest investments you can make in your business.

Why not make use of YITH’s compatibility and use all three plugins and transform your website? After all, this blog would not complete without offering a bundle ourselves. You can buy them as a bundle for only $199 using this link. This offer is for a limited period only.

Documentation and Resources

Each of our premium plugins has an extensive description with screenshots, documentation and a live demo, plus a 30-day guarantee to get your money back for whatever reason.

YITH WooCommerce Product Bundles – product page | Documentation | Live Demo
YITH WooCommerce Frequently Bought Together – product page | Documentation | Live Demo
YITH WooCommerce Dynamic Pricing and Discounts – product page | Documentation | Live Demo

Other Blogs to read next
Set up a subscription service like Amazon Prime | Create a recurring income stream