Learn what AOV (Average Order Value) is,how to calculate it and proven strategies to increase it for higher revenue and profit in eCommerce.
What is AOV (Average Order Value)?
AOV (Average Order Value) is the average amount customers spend per transaction on your online store.
AOV Formula:
AOV = Total Revenue ÷ Total Number of Orders
Example:
If your store generates:
- £10,000 in revenue
- From 250 orders
Then:
£10,000 ÷ 250 = £40 AOV
This means,on average,each customer spends £40 per order.
Increasing AOV means earning more revenue from the same number of customers.
Why AOV is Critical for eCommerce Growth
Many businesses focus only on traffic and ads. But increasing AOV can be more profitable than increasing visitors.
Here’s why AOV matters:
- Higher revenue without extra marketing spend
- Better profit margins
- Lower customer acquisition cost (CAC) impact
- Improved ad ROAS
- Stronger cash flow
For example:
If your:
- AOV = £30
- Profit margin = 30%
You make £9 profit per order.
If you increase AOV to £50:
You now make £15 profit per order.
That’s a 66% increase in profit — without increasing traffic.
Five Ways to Boost Your eCommerce Business
What is a Good AOV?
There is no universal “good” AOV. It depends on:
- Industry
- Product type
- Pricing strategy
- Customer demographics
Typical UK eCommerce AOV Benchmarks:
- Beauty & Cosmetics: £25–£60
- Fashion: £40–£100
- Electronics: £80–£300
- Subscription Boxes: £20–£50
The goal is simple:
Increase AOV while maintaining conversion rate.
10 Proven Strategies to Increase AOV
Now let’s look at practical strategies you can implement immediately.
1. Offer Free Shipping Thresholds
One of the most powerful AOV strategies.
Instead of:
“Free Shipping on all orders”
Try:
“Free Shipping on orders over £50”
Customers who planned to spend £35 may add an extra product to qualify.
This simple method can significantly increase AOV.
This works best when your fulfilment costs are optimised — something professional 3PL providers like Kun Fulfilment help manage.
2. Create Product Bundles
Bundling increases perceived value.
Instead of selling:
- Shampoo £10
- Conditioner £10
Sell:
- Haircare Bundle £18
Customers feel they’re saving money, but you increase order value.
Bundles work well for:
- Beauty products
- Supplements
- Skincare
- Gift sets
3. Use Upselling at Checkout
Upselling encourages customers to buy a premium version.
Example:
- Basic candle £15
- Luxury version £22
Or:
- Standard delivery
- Express delivery upgrade
- Smart checkout optimisation can increase AOV by 10–30%.
4. Cross-Sell Related Products
Cross-selling suggests complementary products.
Example:
- Buying a phone case → Suggest screen protector
- Buying skincare → Suggest moisturiser
- Buying candles → Suggest wick trimmer
5. Volume Discounts
Encourage customers to buy more quantity.
Example:
- Buy 1 for £10
- Buy 3 for £25
This increases cart size while improving perceived value.
6. Loyalty & Reward Programs
Offer:
- Points per purchase
- Exclusive discounts
- VIP tiers
Customers are more likely to increase order size when rewards are tied to spending.
7. Limited-Time Offers
Urgency increases cart size.
Examples:
- “Spend £60 today & get free gift”
- “24-hour bundle deal”
- Scarcity + urgency = higher AOV.
8. Offer Subscription Options
If you sell consumable products:
- Supplements
- Skincare
- Pet supplies
Subscriptions increase lifetime value AND average transaction size.
9. Improve Product Descriptions & Visuals
High-quality content increases perceived value.
Better:
- Images
- Lifestyle photography
- Video demos
- Clear benefits
- Higher trust
- Larger baskets
10. Optimise Fulfilment to Support Higher AOV
This is often overlooked.
If you increase AOV but:
- Shipping becomes expensive
- Packaging costs rise
- Returns increase
Your profit disappears.
A strong fulfilment partner helps:
- Reduce shipping costs
- Offer better courier rates
- Optimise packaging
- Handle bundles efficiently
- Manage stock correctly
With professional fulfilment, increasing AOV becomes sustainable and scalable.
- 3PL Warehouse: Fulfilment Solution for Modern Businesses
Common Mistakes When Trying to Increase AOV
Avoid:
- Offering unrealistic free shipping thresholds
- Aggressive upsells that hurt UX
- Bundles that confuse customers
- Poor stock management
AOV strategies must be supported by:
- Inventory control
- Proper SKU management
- Efficient fulfilment operations
How to Track and Monitor AOV
Track AOV in:
- Shopify Analytics
- WooCommerce reports
- Google Analytics
- CRM dashboards
Monitor:
- AOV by traffic source
- AOV by product category
- AOV by device (mobile vs desktop)
- Optimisation requires testing.
AOV vs Conversion Rate – Balance is Key
Increasing AOV must NOT:
- Lower conversion rate drastically
- Reduce customer satisfaction
- Increase returns
The goal is:
Higher revenue + maintained customer experience.
TL;DR – How to Increase AOV
To boost AOV:
- Set free shipping thresholds
- Create bundles
- Upsell & cross-sell
- Offer volume discounts
- Introduce subscriptions
- Improve product visuals
- Optimise fulfilment
Conclusion: Increase Revenue Without Increasing Traffic
AOV is one of the most powerful levers in eCommerce.
Instead of spending more on ads, focus on:
- Increasing basket size
- Optimising fulfilment
- Creating smarter offers
- Delivering better customer experience
With the right strategy — and the right fulfilment partner — your business can scale profitably.Ready to optimise your fulfilment for higher AOV? Explore Kun Fulfilment’s smart eCommerce solutions.
