Quick summary
This post covers practical strategies for increasing average order value (AOV) on an ecommerce store, including setting free shipping thresholds, upselling, cross-selling, and product bundling. It explains why focusing on AOV from existing customers is a more efficient route to revenue growth than chasing new traffic.
Looking to boost your ecommerce revenue?
Look no further. We’ve got all of the latest tips and tricks to help you increase revenue and profits, without the grind of chasing new customers and traffic. If you haven’t already optimised your ecommerce website and marketing strategy to increase your average order value (AOV), now is the time to get started!
The Importance of AOV
AOV is absolutely integral to boosting the profitability of your business. Instead of chasing your tail trying to increase brand visibility with the SERPs, reaching a few new users and hopelessly trying to convert them into customers, focusing on AOV allows you to boost revenue from existing customers. In turn, saving you time and costly resources in the long run. By focusing on customer retention and increasing AOV, you can create deeper bonds with existing customers, encouraging them to purchase more products per transaction and increasing revenue.
Additionally, many studies have shown that existing customers are much more willing to part with their hard earned money and buy more products per transaction. Demonstrating how focusing on AOV can be an extremely efficient way to boost sales and increase the profitability of your business.
5 Ways To Boost Your Online Store’s AOV
1. Set a free shipping threshold
Setting a free shipping threshold that guarantees free shipping when a customer spends over a certain amount is a sure-fire way to boost your AOV. Psychologically, customers are incentivised to add more product to their cart to ensure they hit the free shipping threshold and as a result, increases your AOV. Be sure to do your research and set your free shipping threshold at an amount that makes sense for your average product price points and average customer order value. Think of it like this; Would you rather spend £50 on an item with free shipping or £40 on an item with £9.99 shipping on top? Our guess is the former! Not only will this help to improve your AOV, it also helps to build trust with your audience as there are no nasty surprises when they get to the checkout page.
**2. Offer unique product bundles **
Product bundling is a tried and tested way to boost your online store’s AOV. When it comes to creating product bundles, it’s absolutely paramount that you demonstrate why they are a benefit to your customers. For example, if a customer buys a pair of socks with a pair of shoes, do they get the socks for free? Or if they buy 3 pairs of socks, perhaps they get a discount on the total price? However you decide to bundle your products, your UX should be designed in such a way to clearly demonstrate the advantage of buying product bundles instead of separate items. If your UX is hot and product bundles offer a clear value proposition, we’re sure your AOV will increase in no time at all!
3. Create a loyalty program
If you don’t already offer a loyalty or rewards program for your customers, what are you waiting for? A loyalty scheme is a fantastic retention strategy that will encourage users to make high-value purchases and boost their customer lifetime value (CLV) as well as AOV. Whether your loyalty scheme entitles customers to a free gift when they spend a particular amount or can redeem rewards points based on how much they’ve spent over the year, your loyalty program should be tailored to your unique audience to ensure it resonates with them and has tangible benefits that are going to incentivise them to spend.
**4. Incorporate up-sell and cross-sell UX features **
In a similar vein, incorporating up-selling and cross-selling features within your ecommerce site is another fantastic strategy for boosting your AOV. Leading British fashion brand ASOS does an excellent job of this with their unique ‘finish the look’ feature which showcases the other products a model is wearing when a user adds an item to their basket. So if you’re adding a top to your cart, the UX feature will display the matching jeans, shoes and even accessories in a super simple, streamlined way to increase the value of a customer’s cart. It’s pretty nifty and certainly helped the brand to succeed.
We’d recommend taking inspiration from ASOS by adding creative up-selling features to your ecommerce site to boost your AOV. It really can work for any industry, think showing golf tees and bags when a customer adds a golf club to their bag or highlighting a garden furniture cover when a customer adds a new garden sofa to their basket. Whatever your industry, get creative and think about what your users are looking for at the exact moment they add a product to their carts.
**5. Offer flexible, BNPL payment options **
Finally, a great way to boost your AOV is to offer flexible payment options such as Buy Now Pay Later (BNPL) schemes, Pay in 3 plans and more. This is a great way to improve the value of a customers’ cart, getting them to spend more as they can pay for it over a few months. This strategy works extremely well for premium brands with a higher product price point as a customer is much more likely to commit to paying 3 lots of £30 rather than £90 in one go, but your brand benefits from higher order values and increased profitability while the BNPL schemes like Klarna and Clearpay take care of the finances.
And there we have it. Some practical strategies for boosting your ecommerce store’s AOV. If you need a helping hand supercharging your website with unique UX features, various payment plans, product bundles or integrating a loyalty programme, get in touch and we will be happy to help.
Frequently Asked Questions
What is a realistic AOV increase from adding a free shipping threshold?
Studies consistently show that a well-set free shipping threshold increases AOV by 10 to 30 percent. The key is setting the threshold 20 to 30 percent above your current average order value, so customers are incentivised to add one more item rather than facing an amount that feels unachievable. For example, if your AOV is £45, a £60 free shipping threshold is more effective than one set at £100.
Which BNPL provider works best for UK Shopify stores?
Klarna and Clearpay are the most widely recognised BNPL options among UK shoppers and both integrate natively with Shopify. Klarna suits higher-ticket products with its Pay in 3 and Pay in 30 options. Clearpay is popular with fashion and lifestyle brands. Both are available from the Shopify Payments settings or via dedicated apps in the Shopify App Store, with no monthly fee: providers charge merchants a per-transaction fee instead.
How do I measure whether my upsell and cross-sell features are working?
Track AOV before and after implementation using Shopify Analytics under Reports, then Sales by channel. Compare the same period month-on-month or year-on-year to control for seasonality. For upsell apps specifically, most provide their own attribution dashboards showing revenue generated per recommendation. Set a 30-day review point after any upsell feature goes live to assess whether it is contributing meaningfully.
Do loyalty programmes actually increase AOV or just retention?
Both, when designed correctly. Loyalty schemes that reward spend thresholds (for example, earn a £10 voucher after spending £200) directly incentivise higher basket values, not just repeat visits. The distinction matters for how you structure the programme: points per pound spent primarily drives retention, while milestone rewards tied to order size drive AOV. Combining both mechanisms gives the strongest results for most UK ecommerce stores.