This action-packed episode is brought to you by the performance marketing experts at Voy Media.
Increase Average Order Value
“How to increase your average order value”
INTRO: You don’t always have to get more customers to increase revenue in e-commerce. If you increase the amount of money customers spend on average, you can also earn more money.
1) Raise Prices
This one is obvious but people often overlook it.
Try price testing with gradually different prices. Key words here being TEST and GRADUALLY.
Higher prices don’t always deter people, it could imply higher value compared to the competitors.
Products that are frequently purchased together should be put in a bundle.
Make the price slightly less than the sum of all products.
The higher price might seem daunting, but not if these are products your shoppers are likely to buy together anyway.
Since the products they’re buying anyway are grouped together in one bundle, it’s less browsing they have to do, which increases conversion rates.
Bold Brain is a great app to help you decide what products should go together.
This is when someone either adds a product to their cart, or makes a purchase, and you offer them a discount on a similar product to get them to buy.
Do them lower in the funnel. On the cart page, or post-purchase.
This works because if someone has added an item to their cart, or even purchased an item, they are very far down your funnel and have shown extremely high purchase intent, so these shameless upsets are fine to do.
Zipify’s OneClickUpsell is great for this, so is Bold Brain, Bold Upsell.
BIG NOTE: this is not only suggested but REQUIRED on stores with heavy mobile traffic and many SKUs.
Browsing a store with many SKUs can be hard on mobile.
If you can smartly cross-sell items frequently bought together to mobile shoppers, that’s less time they need to browse and less pages they have to go through.
This increases conversion rates on mobile.
Mobile purchase behavior is also usually impulse buying. So mobile shoppers are more prone to impulse decisions like upsells and cross-sells.
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