Tuesday, August 7, 2012

4 Ways to Increase Average Order Value


These past two years have brought an increased velocity of aggressive Google algorithm changes, which for many website owners has resulted in a high amount of traffic fluctuations that has reduced the stability of Google organic as a traffic source.
Increasing average order value (AOV) is one method that you can use to increase revenue, even during traffic fluctuations. This article will show you four ways that you can increase AOV, with examples, to increase revenue from current traffic.

The Many Flavors of Free Shipping Offers

It is an open secret that free shipping provides a competitive conversion advantage.
According to a comScore study, The State of the U.S Retail Economy in Q4 2009, "while 75% of customers surveyed said they would shift to another retailer at checkout if shipping was not free, free shipping accounted for just 6 points of all transactions".
Also, according to The State of Retailing Online 2009:Profitability, Economy, and Multichannel by Sucharita Mulpuru, "40% of shoppers report being shocked at the cost of shipping and abandoning the checkout process".
However, this trend toward free shipping is tempered by the fact that free shipping for all customers is hard to scale for many ecommerce businesses. Despite this, there are certainly a variety of options for business owners to consider for shipping offers to help increase AOV.
  • Free Shipping Threshold: This is a classic shipping strategy to increase average order value is simply to provide free shipping for orders above a minimum order.
  • Flat Rate Offers: This is a popular solution for many big box retailers. Some retailers offer the first purchase for free shipping and others offer a flat rate for all purchases below a certain threshold.
  • Free For Eligible Products: Offering free shipping on eligible products is great if you are doing bundle promotions. Instead of a potential customer buying individual, they can purchase a bundle and get free shipping. This strategy is also commonly used with big ticket items.
  • Limited Time Offers: This strategy is mostly used for seasonal promotions and to help sell some of the remainder of last seasons products. However, you can try limited time free shipping order with bundle offers.
Here is an example of a basic way to spin free shipping but this is one thing that you can test out a variety of messages and strategies for the best free shipping messaging.
free shipping offer



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