How to Increase Average Order Value (AOV) in WooCommerce?

To increase Average Order Value (AOV) in WooCommerce, you can use strategies like offering product bundles, volume discounts, free shipping thresholds, and personalized product recommendations.

Plugins like Disco – WooCommerce Discount Plugin help create dynamic pricing and discount rules that motivate customers to buy more per order.

“Money never starts an idea; it is the idea that starts the money.” 
_ William J.Cameron

What’s quite interesting about this quote is how brutally true this is. You can’t expect an increase in Average Order Value (AOV) if you simply sit back and wait for time to do the work. 

What is AOV in WooCommerce?

The Average Order Value (AOV) refers to the average amount a customer spends per transaction on your WooCommerce store. It is one of the most effective performance indicators that exhibits whether a business is doing well or not. 

For example –

• If a store makes $5,000 from 200 orders, AOV = $25.
• If a business generates $74,000 from 4,000 orders, AOV = $18.50.

Why Increasing AOV Matters for WooCommerce Stores? 

It is one of the most successful ways to grow your business without increasing customer acquisition costs. It maximizes existing traffic and increases CLV (Customer Lifetime Value).

Here are the key reasons why increasing AOV matters:

• More profit with less effort: Improving AOV per month automatically increases revenue.
• Improved Customer Value: Bundling or customized offers improve customer experience.
• Stronger Brand Loyalty: Customers are more likely to visit the store when they perceive value in it. This creates stronger brand loyalty. 
• Improves marketing efficiency: Higher revenue covers the cost of improved advertisements and market campaigns. 
• Enhanced customer insights: Tracking AOV per month helps you gain a deeper understanding of the market and customer behavior. 

12 Proven Ways to Increase AOV in WooCommerce

Here are 12 proven ways to increase AOV in WooCommerce: 

1. Set Free Shipping Thresholds

Encourage your customers to purchase more products by giving them the advantage of free shipping for a certain amount. 

Studies show that nearly 60% of online shoppers leave their carts when they encounter unexpected or high shipping fees. 

Conversely, around 70% of shoppers are more likely to complete their purchase when offered a WooCommerce free shipping coupon.

Tips : 

• Give preference to promote the free shipping offer throughout the entire journey, including cart, product pages, and site headers.

• Avoid using excessive discounts that would harm profit margins; instead, focus on offering strategic discounts. 

• According to experts and sources, your free shipping threshold should be approximately 30% higher than your average order value (AOV).

 It encourages customers to add more items. This ensures that the extra spend covers the shipping cost. 

• Create an optimal balance in your store by managing the minimum spend on “ free shipping offer” based on customers’ behavior.

2. Use product bundles 

Group less complementary products into bundles and sell them at a discounted price. 

The price should be lower compared to products that are sold individually.

It’s called the decoy effect. When customers compare a moderately priced bundle against a bit expensive one, they go for the “ moderate choice“, thus increasing AOV.

This will create more convenience for the customers, and they will genuinely see value in the products. Use plugins such as WooCommerce bundles, Disco to create attractive package deals. 

Here are more strategies to increase AOV with product bundles : 

Create Value-focused bundles – Make exclusive packages with complementary products to present a complete solution.

For example : 

• A skincare set : ( Cleanser, toner, moisturizer) 
• A Coffee bundle: ( Beans, mug, coffee)

• Pricing and Presentation: Create engaging highlights, a compelling title, and a clear description to present the price contrasts. 

Individual Prices: Cleanser – $15 | Toner – $12 | Moisturizer – $20

Bundle Price: $39 (Save $8!)

Description: Achieve a complete skincare solution with our 3-step routine, including cleanser, toner, and moisturizer. 

Highlight example:  “ Buy the full set and get a 17% discount on individual prices. ”

3. Create Volume discounts 

Reward your customers to purchase more. It is as though,” The higher the risk, the higher the rewards.”

WooCommerce pricing plugins, such as  WooCommerce Discount Rules and Disco, make it
easy to create volume discounts. 

For example,

1) Buy 3 times and get a 15% discount 

2) Buy 5 items, get a 25% discount 

4. Use upselling and cross-selling 

External pricing plugins for WooCommerce enable shop owners to display premium versions of their products most appealingly.

On the contrary, cross-selling involves offering related products following the initial purchase.

Here, the customer made the initial purchase of the camera, and the rest of the items are complementary. 

5. Implement limited-time offers 

Time-limited offers influence customers’ impulse buying. You can tailor flash sales on bundles or show countdown timers. This will evoke customers’ FOMO ( Fear of Missing Out).

For example: “Last hour, 30% off all products .”

6. Implement Role-based pricing 

Role-based pricing creates a sense of privilege among customers, and they feel special.  It encourages customers to increase their purchases to unlock exclusive discounts and rewards.

For example: “50% off  on Dairy Products only for VIP customers “

7. Enable product addons and customization 

The more you allow customers the freedom to customize, the more they are drawn to such offers. You can add beautiful gift wrappings, meaningful notes, and personalized engravings to make them feel special. 

Tips :

• Keep your add-ons and customization relevant to the main product. For example, if a customer purchases a phone, the add-on should be an exclusive screen.

• Use tiered pricing for add-ons from basic to premium customization levels. For example, if the product has high margins, the add-on’s price should be 10-15% of the main product. 

8.  Accept backorders 

Don’t lose any customers !!! Allow your customers to order currently out-of-stock products. This will also increase revenue per order. 

9. Use Smart coupons and promotions 

You can create cart-based discounts, BOGO deals, or gift cards for future purchase. You can also tailor special coupons for the next purchase. It’s important to make your promotions strategic, time-bound, and rewarding. 

10. Optimize Checkout Experience 

A confusing and lengthy checkout process can lead to issues like cart abandonment. To avoid this risk, simplify the checkout experience with plugins like  CartFlows or CheckoutWC.

Tips : 

• Recommend personalized products relevant to the cart. This might leverage smart cross-sells.

• Transition to a single-screen checkout to create a seamless customer experience.

11. Offer Membership 

Membership programs create a sense of belonging and exclusivity among the customers. They get ongoing rewards, exclusive discounts, and a personalized experience that encourages them to make repeated purchases. 

What makes it different from role-based pricing is that it not only focuses on the pricing structure but also on exclusive access. It’s more centered on engagement and loyalty.

For example: “Join our VIP Membership and enjoy 15% off every purchase .”

Tip: Use a membership program and a role-based pricing structure for better results. 

Recommended Plugins for Membership Programs : 

• Disco
• WooCommerce Memberships
• WooCommerce Subscriptions
• YITH Membership Plugin

12. Use live chat customer support

According to statistics, 63% people are willing to buy from websites that offer live chat customer support. It removes the purchase hesitations and encourages more upselling and cross-selling.

Example: If a customer wants to purchase a laptop, the chat agent can inform them about different brands, prices, and warranties. 

Wrap up

Strategic thinking is essential for increasing AOV (Average Order Value). Strategic pricing, personalized offers, and optimized shopping experience – all of them lead to maximizing every transaction. This will enhance the overall revenue and profit margins 

So, track your AOV, and slowly incorporate strategies one at a time. Continue striving to transform your business into a high-performing WooCommerce  Business.

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