As a retailer, increasing your average order value (AOV) is one of the most effective ways to grow your business. AOV represents the average amount of money that customers spend on each purchase, and it’s a crucial metric for understanding your store’s profitability. Let’s go over how to increase your AOV.
Strategies to Increase Your AOV
Offer Free Shipping at a Minimum Purchase Threshold.
One of the most effective ways to increase your AOV is by offering free shipping at a minimum purchase threshold. Customers are more likely to add additional items to their cart to qualify for free shipping, which can help you increase your AOV. So, for example, if your store offers free shipping at a $50 minimum purchase, customers may be more inclined to add an additional item to their cart to reach that threshold.
Implement a Loyalty Program.
Implementing a loyalty program can also help you increase your AOV. Loyalty programs offer incentives for customers to make additional purchases, such as discounts or reward points. For example, you could offer a $10 discount on a future purchase to customers who spend $100 or more in a single transaction. By offering incentives for customers to spend more money, you can increase your AOV.
Offer Financing Options.
Financing options such as Sezzle can also help increase your AOV. By allowing customers to spread out the cost of a purchase over time, you can make larger purchases more accessible to them. Customers may feel more comfortable spending more money if they know they don’t have to pay it all at once.
Create Product Bundles.
Creating product bundles is another effective way to increase your AOV. Bundling products together can increase the perceived value of the offer and make customers feel like they’re getting a better deal, (for example, if a customer buys an outfit from your boutique, you could upsell some shoes or accessories to match).
Cross-Sell and Upsell.
Cross-selling and upselling are effective strategies for increasing your AOV. Cross-selling involves recommending complementary products to customers who are already making a purchase. Upselling involves recommending more expensive or higher-quality versions of the product the customer is interested in.
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Margin Builder Strategy
Wholesale margin builders are products that retailers use to increase their profit margins. These products are great for cross-selling and upselling strategies, along with creating product bundles. Depending on your boutique type, these products can include things such as makeup, accessories, or shoes. You’ll want to place these items near the checkout counter or set up your online store site to recommend these items before a customer completes checkout. Take a look at a few margin builder options available on Hubventory for boutique retailers:
There are a ton of different options of margin builders available on Hubventory that will help to increase your AOV. Check out all the options for yourself by creating a free account and browsing around!
Looking to take your boutique’s growth even further? If you’re ready to optimize your product assortment, dial in your pricing strategy, and scale with confidence, Retail Bootcamp is the next step. This proven coaching program is designed to help boutique owners like you increase sales, streamline operations, and grow smarter—not harder.
We hope you liked this blog post on How to Increase Your AOV. By shopping wholesale on Hubventory, members can take advantage of fair pricing and even member discounts on top brands! Sign Up to Shop on Hubventory.
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