Boosting revenue is an ongoing struggle in the e-commerce world. It requires various strategies to generate the extra revenue. One of the most efficient ways to increase revenue without having to increase your current customer base, is focusing on the Average Order Value (AOV). AOV is an average of the amount a customer spends on the order. 

The higher AOV is the more revenue a business will earn from its already existing customers which makes it a crucial metric for Shopify store owners.

By 2024, the value of global e-commerce was set at an unprecedented amount of $6.3 trillion that ballooned by 8.8% year-over-year (eMarketer). 

So, to keep up with the competition, Shopify store owners should consider performing strategic decisions that will boost their average order value considerably.

This article aims to provide the readers with a list of some basic and some smart strategies to get higher AOVs.

What is AOV? 

AOV full form is Average Order Value, AOV is the average amount a customer spends per transaction. It is calculated by dividing total revenue by the number of orders.

How a Higher AOV Increases Revenue Without More Traffic?

Increasing AOV increases existing customer revenues without raising the traffic requirements. This enhancement leads to an increased productivity and customer lifetime value.

Effective Strategies to Increase AOV

Getting the Average Order Value (AOV) of your Shopify store up and running need not be rocket science. With the help of proper incentives, you can elevate the consumers to spend more on an order, thus, increasing the AOV along with making their shopping experience satisfactory.

Here are some of the most effective ways to drive higher AOV.

1. Increase Cart Size with Product Bundling

Customers adore products that come as a part of a value-packed deal and product bundling is the top pick when it comes to offering such a deal. The clients will get an instant 20% discount when they buy the items in the smaller bundle. In turn, the AOV will rise a little as the main product will receive a smaller percentage of the total purchase. 

Example: Instead of selling a phone case and a screen protector separately, offer a bundle deal with a 10% discount.

Case Study: Shopify-centered floral company LVLY increased its AOV by 6% year-over-year by launching add-on options and gift vouchers to their online portal (Shopify).

When executed properly, apart from the increased revenue that it brings to the table, product bundling also gets customer satisfaction a solid boost by making their purchasing decisions easy.

2. Offer Automatic & Stackable Discounts

One of the most effective methods to bring in more sales is by offering automatic and stackable discounts. Such discounts make customers more willing to buy additional products, as they will be getting more for less.

Example: "Spend $100 on purchases and get 15% off, spend $200 and get 20% off—the more you spend, the more you save!"

Why It Works: According to Wisepops, a prominent marketing platform, discounts make the average order value of clients rise, as they choose to pay more to redeem them.

Granting people to use different discounts together—be it case of bulk order and seasonal sale combination—enables them to materialize the bargain of the item and encourages them to buy more.

3. Implement Free Shipping Thresholds

A potential cause of customers leaving the whole deal is often closely related to shipping costs in online purchasing.

As many as 48% of buyers desert their carts because of high shipping fees. By way of setting a free shipping threshold, Shopify merchants can motivate clients to shop more.

Example: "Enjoy free delivery on purchase orders of $75 or more!"

Why It Works: Purchasers value it as a nice-to-have benefit and spend more often just to get it at no shipping charge.

This strategy, besides minimizing cart abandonment, also contributes to the average order value (AOV) simply by inducing more substantial purchases.

4. Cross-Sell & Upsell with Smart Recommendations

Smart product recommendations can significantly enhance AOV by introducing the customers to relevant add-ons (cross-sells) or upgrades (up-sells) at the time they are most likely to buy.

Cross-Selling Example: "Customers who bought this also purchased..."-Urging them to add complementary products into their cart.

Upselling Example: Pitch a product that is an improved version of the customer's original choice at a slightly higher price.

Case Study – Donner: A Shopify-based musical instrument brand Donner achieved a 300% increase in AOV through optimization of its checkout process and offering inexorable upsells (Shopify).

The use of Shopify automatic recommendation tools or manual product pairing leads to customers being shown additional items that they would not have thought of during the shopping process—thus, these lead to higher order values and the generation of higher revenue.

5. Leverage Subscription & Membership Offers

Steering customers towards subscription over one-time buy can lead to substantial increases in AOV and customer lifetime value. The recurring billing you provide gives you access to reliable revenue. This business model promises consistency of revenue and customer loyalty.

Example: "Subscribe & Save - Say yes to minus 10% at your every monthly purchase."

Why It Works: Subscription-based business models are nowadays snowballing across different industries as they are an effective tool for businesses to keep a steady economic foundation as well as to create a long-term customer relationship.

We recommend making subscribing an irresistible option—driving higher spending over time—by offering exclusive members-only discounts, early access to new products, or special perks.

6. Create Time-Limited Promotions & Urgency

The ticking clock is surely one of the most powerful motivators. It is by using the time-sensitive promotions that one can push the customers towards larger purchases in a short time.

Example: “Buy within the next 2 hours and get a free gift!”

Why It Works: Urgency taps into FOMO (Fear of Missing Out), prompting customers to act immediately rather than delaying their purchase.

Limited-time deals, flash sales, or exclusive discounts for a short window of time can have a significant impact on both conversion rates and AOV. They stimulate the customers to spend more within the moment.

7. Introduce Loyalty & Rewards Programs

To trigger loyal customers to spend more and shop more often, loyalty programs can be a great strategy that drives the average order value up and increases the long-term revenue growth. By rewarding customers for their purchases, you can encourage repeat spending while building stronger brand loyalty.

Example: “Get points for every dollar you spend and exchange them for discounts or free products.”

Why It Works: Studies prove that a 5% increase in customer retention can increase a company’s turnover by 25% or more because the people who are already buying are more likely to spend more than new customers.

Loyalty programs tap into the customers' need to find better rewards. They create an incentive for customers to spend more per transaction to unlock better rewards—this will consequently yield a higher AOV and lifetime value. Be it through a point-based system, VIP tiers, or referral bonuses, these programs are the tools, with which, companies are keeping their customers engaged and coming back for more.

Methods for Creating Discounts & Offers on Shopify

Shopify Admin Discounts

In the Shopify Admin, you can create basic discounts directly from your store’s dashboard. These include:

1. Discount Codes – Customers enter a code at checkout to receive a discount.

2. Automatic Discounts – Applied automatically when conditions are met (only one per order).

3. BOGO (Buy One, Get One) – Offer free or discounted products when customers buy a certain item.

4. Free Shipping – Remove shipping costs when customers meet specific conditions.

However, Shopify Admin has some limitations, such as allowing only one automatic discount per order and lacking advanced features like volume pricing or stackable discounts.

Shopify Apps

For more advanced discount options, Shopify apps like AIOD - All-in-1 Discount allow you to create multiple types of offers, including:

1. Automatic Discounts 

2. Bulk Discounts

3. Tiered Pricing

4. BOGO & Free Gifts

5. Cart-Based Discounts

6. Upsell & Cross Sell

7. Post Purchase Offers

8. Volume Discounts

9. Stack  & Combine Discounts

10. Conditional Discounts & Popup

However, apps may have subscription costs and require setup, but they provide more powerful and customizable discounting options to increase sales.

Final Thoughts

Producing high AOV (Average Order Value) is an efficient way to increase the total of the income without needing external traffic. Thus, the growth of profitability will be maximised for Shopify store owners who, at the same time, are making the shopping experience more interesting.

Some of the successful techniques are those like product bundling and automatic discounts, which are designed to make the customers think that products with such a discount are more valuable and thus they are willing to buy more of them. Free shipping thresholds become a reason to meet the minimum spend when the customers are offered cross-sells, upsells, and urgency tactics. They work like additional purchases drivers. The subscription models and loyalty programs will be the ones to inspire long-run customer relationships by raising both retention and the lifetime value.

The growth in business is always possible, but it is only by tracking key metrics, A/B testing and the rational usage of data that the right path of behaviour can be identified. By adjusting and improving these strategies, Shopify merchants may see solid growth and make a lot of profit for a long time.