Have you landed on this blog due to any of the following reasons?
Your store is getting good traffic, but few conversions.
People are buying from your store, but your revenue is not growing the way you expected.
If your Shopify store is facing any of the above issues, you are on the right page.
Here’s what most Shopify store owners get wrong. They think that getting more traffic equals to more revenue, and they keep spending money on ads, SEO, social media, etc. But that’s not the end solution for growing your revenue.
But here’s the hidden beauty of Shopify AOV. You don't need to struggle to get more customers; instead, you can make more revenue from the existing customers if they spend a little more per visit or per order.
To increase Shopify AOV, each buyer must get a better option to spend more per visit. And in this blog, you will find out proven tips to boost your Shopify average order value.
What is average order value (AOV) in Shopify?
Average Order Value (AOV) is the average amount a customer spends per transaction while placing an order. The higher the Shopify average order value, the more profit a business makes. To calculate AOV, simply divide your total revenue by the number of orders over a specific period of time.
Shopify AOV calculation formula
AOV = Total Revenue / Total Number of Orders
AOV Calculation Example
Let’s say your store generated $1,000 revenue from 50 orders.
AOV = $1000/50 = $20
On average, each customer spends $20 per order.
Average order value benchmarks by industry
Before you try to increase Shopify AOV of your store, you need to understand where you stand. Here's a quick industry breakdown given by Shopify to give you more context:
Luxury & Jewelry - $300+ Electronics - $120–$180 Apparel & Accessories - $40–$170 Beauty & Personal Care - $15–$90
The benchmark is just a starting point. What matters more is whether your AOV is growing.
7 Tips to Increase Average Order Value on Shopify
To increase Shopify AOV, you don’t require heavy efforts or extra costs. And here I have added proven examples that we found our customers are using in their stores to boost average order value.
1. Offer Free Shipping Bar
Free shipping is one of the most powerful AOV levers on Shopify. The main psychology behind progress bar is to encourage customers spend more items to cart to qualify free shipping. Because customers mostly drop the cart due to higher shipping rates, and if you offer a free shipping bar chances are high that they won’t abandon the cart.
“Digital marketing consultant Aaron Zakowski recommends setting the free shipping threshold around 30% above your average order value, or using your most common order value as a reference.”
**Example: ** Add $10 more to unlock free shipping You’re just $10 away from getting free shipping
Implementation: As a rule of thumb, set your free shipping threshold just above the average dollar amount your customers spend. If your AOV is $30, set your free shipping threshold at $40-45.
Here’s a real example of Anua, one of our popular merchants who is using free shipping progress bar through iCart..
2. Upsells & cross-selling
Upselling and cross-selling have been mostly used by popular brands like Amazon, McDonald’s. These 2 strategies are easy to increase customer’s cart value. This works better when you have shown relevant suggestions to your customers based on what items they have added to the cart.
Instead of just giving upsells & cross-sells try to give a small discount on the upselling or cross-selling item. Offer low-value upsells to increase the likelihood of purchase.
For example, if someone is buying a $100 worth product, it’s hard to convince them to buy another $100 worth product. But it’s easy to convince them to add a $20 product that complements their purchase.
To show pre-purchase upsell & product recommendations in cart you can try apps like iCart Cart Drawer Cart Upsell, which can help you to get up tp 30% boost in AOV.
3. Offer Product Bundles
Bundling is one of the fastest way to increase Shopify AOV & make more revenue if it is offered in the right way. Customers always love to buy complete combo instead of just buying a single product which can’t be used effectively.
We can consider an example of a beauty store where a customer comes to buy a skin care product, but adds only facewash. And what if the store suggests facewash + moisturizer + serum in a special offer that builds the complete skin care.
So, chances are high that the customer will love the combo and the discount because the customer knows that if they buy that single product, it would cost them high and somewhere in their mind they were not satisfied with the single product.
4. Use Tiered Pricing & Volume Discounts
Tiered pricing and volume discounts work well because they give customers a clear reason to buy more in one order. Instead of offering a flat discount to everyone, you can create offers like “Buy 2, save 10%” or “Buy 3, save 15%.” This makes the deal feel more rewarding as the cart value increases.
You can also use volume discounts with product bundles to increase average order value without making the offer feel forced. For example, a skincare store can offer a discount when customers buy a cleanser, toner, and moisturizer together.
5. Set up a customer loyalty program
Your best customers are not always the ones buying for the first time. They are the ones who come back again.
A loyalty program gives shoppers a simple reason to return. They can earn points, unlock rewards, and feel more connected to your brand.
For Shopify stores, this is where a loyalty rewards app can help. To implement this in your store, you can install any of the free & most used apps like iWeb Loyalty Rewards, This helps improve customer retention while also encouraging shoppers to increase their cart value to unlock better rewards.
Final Thoughts
Increasing your Shopify AOV does not always mean bringing more traffic to your store. Sometimes, the better move is to make your existing visitors spend a little more with the right offers, product suggestions, and rewards.
Start with simple strategies like free shipping bars, upsells, cross-sells, product bundles, volume discounts, and loyalty rewards. These small changes can make the buying experience better while helping you improve your Shopify average order value.
Frequently Asked Questions on Shopify AOV
1. What is average order value in Shopify? Average order value in Shopify is the average amount a customer spends each time they place an order on your store. It helps you understand how much revenue each order brings in on average.
2. What is a good average order value for a Shopify store? A good average order value depends on your product category, pricing, and customer buying behavior. For example, a jewelry or electronics store may have a higher AOV than a beauty or fashion accessories store. Instead of only comparing with others, track whether your Shopify average order value is improving over time.
3. How to calculate AOV on Shopify? You can calculate AOV by dividing your total revenue by the total number of orders. The Shopify AOV calculation formula is: AOV = Total Revenue / Total Number of Orders For example, if your store made $2,000 from 100 orders, your AOV would be $20.
4. Why is average order value important? Average order value is important because it helps you increase revenue without always depending on more traffic. When customers spend more per order, your store can generate more sales from the same number of visitors.
5. How to increase average order value on Shopify? You can increase Shopify AOV by using free shipping bars, upsells, cross-sells, product bundles, volume discounts, tiered pricing, and loyalty rewards. The key is to show relevant offers at the right time so customers feel they are getting better value by adding more to their cart.
