5 Tips to Improve Your Customer’s Average Order Size

Published by on

Sales, the most important word in any online merchant mind. Successful merchants are constantly researching, creating and innovating new ways to make more sales. For this reason and many others, it is important that when an online business gets a customer, you try as much as possible to sell many types of products to that particular customer. The following are some of the methods you can use to improve your customer’s average order size.

1. Introduce Free Shipping Threshold

There is sufficient evidence to prove the psychological effect that the words “free shopping” have on shoppers. Free shipping should ideally be capped at a threshold; for example, “free shipping on all orders over $100.” This incentive will make a customer who was purchasing an item which for example goes for $65 add other items to their cart in order to qualify for the free shipping option. This is a solid strategy as it is estimated that more than 40% of cart abandonment are due to the lack of free shipping.

2. Offer Discounts and Offers

Offering discounts is also similar to the first one in that it provides a minimum threshold. A discount could be in the form of “5% off on every purchase over $300. You can also provide offers which might be limited to a threshold of your liking. For example, 15% off on all orders in May or offers for first time shoppers. This will make shoppers purchase more in that period to get the discount.

3. Bundle Deals

Bundle deals is another efficient method of increasing your average order size. Bundle deals come in various forms for example, buy 4 and get 1 free or buy a set of shoes and get socks for free. Bundle deals could even just be a cheaper option without necessarily providing a free product. This is also another great way to move dead stock.

4. Cross-selling

This method is one of the best way to improve the average order size. It is suited to merchants who cannot afford to provide offers, discounts or any other incentive. Cross-selling involves actions such as displaying other related products. You can do this by creating “you may also like” type of modules in your site.

5. Loyalty Reward Programs

This strategy can increase not only the average order size but also the frequency of shopping especially for stores selling fast moving goods. You can for example give customers 1 point for every dollar spent. These point can be redeemed after they reach a set threshold.
With most of these methods, you are providing an incentive to the customer at your real or imagined cost. However, the aim of the business is to make a profit and it is therefore important that you do thorough analysis and calculations before implementing any strategy. These type of analysis and calculations are normally very detailed and time consuming. You need applications which will make all this work easier. A great example of such an application is dSpace Ecommerce. The dSpace Ecommerce is a tool will make it easier to track and increase your average order size through its functionalities.