Growing a Shopify store isn’t just about getting more customers—it’s about making each customer spend more. This is where Average Order Value (AOV) comes in.

A higher AOV means more revenue per transaction, lower customer acquisition costs (CAC), and increased profitability. But many businesses struggle with low AOV due to poor pricing strategies, lack of bundling, or ineffective upselling.

Let’s dive in!

What is Average Order Value (AOV)?

Average Order Value (AOV) is the average amount a customer spends per transaction in your store.

Formula: AOV=Total Revenue / Total Orders

Why Is AOV Important?

• Higher AOV = More Revenue Per Customer

• Reduces Dependence on New Customers

• Lowers Customer Acquisition Costs (CAC)

• Improves Overall Profitability

Example:

• Store A: 1,000 orders, total revenue = $50,000 → AOV = $50

• Store B: 1,000 orders, total revenue = $75,000 → AOV = $75

Store B earns $25 more per order without increasing customer count!

What Causes Low AOV?

🚨 If your AOV is low, these might be the reasons:

1️. Poor Pricing Strategy:

• Low-priced products dominate sales.

• No clear upsell or premium pricing tiers.

2️. No Product Bundling or Cross-Selling:

• Customers buy only single items instead of related products.

• No suggested complementary items.

3️. Lack of Incentives for Larger Purchases:

• No free shipping threshold (e.g., "Get free shipping on orders above $100").

• No discounts for bulk purchases.

4️. Weak Customer Engagement & Trust:

• No loyalty programs to encourage repeat purchases.

• Poor product recommendations & lack of personalization.

How to Improve AOV (Proven Strategies)

1. Use Basket Analysis to Identify High-Value Pairings-

• Basket Analysis helps determine which products are frequently bought together.

• Encourages bundling, upselling, and personalized recommendations.

Example:

• If many customers buy shoes but not socks, offer discounted shoe + sock bundles.

• If customers buy a phone case but no screen protector, suggest a package deal.

  Result: More items per transaction = higher AOV

  👉 Use DataDrew.io to analyze customer baskets & create effective upsells.

  
  

2. Offer Bundling & Discounts-

• Offer Buy One, Get One (BOGO) deals.

• Create discounted product bundles (e.g., "Skincare Kit" instead of single products).

• Offer bulk pricing (e.g., "Buy 3 T-shirts, get 20% off").

  Result: Increases per-order revenue while offering more value to customers.

  
  

3. Set Free Shipping Thresholds-

• Encourage customers to spend more by setting a minimum order value for free shipping.

Example:

• "Free Shipping on Orders Above $75!"

• If AOV is $50, set the threshold slightly higher ($75) to increase spending.

  Result: Encourages larger carts, leading to higher AOV.

  
  

4. Upsell & Cross-Sell Smartly-

• Upsell higher-tier products ("Upgrade to the Pro version for $20 more").

• Cross-sell complementary items ("Customers also bought these accessories").

• Use AI-driven recommendations for personalized offers.

  Result: Increases per-order value without feeling pushy.

  
  

5. Introduce Loyalty Programs & Subscriptions

• Offer exclusive discounts to VIP members.

• Reward repeat buyers with points & perks.

• Promote subscription plans for recurring purchases.

  Result: Encourages repeat purchases, increasing both AOV & customer retention.

How to Use Basket Analysis to Increase AOV (The Game-Changer for Your Business 🚀)

What is Basket Analysis & Why Should You Care?

Basket Analysis is a powerful e-commerce strategy that helps decode customer buying behavior. It reveals:
✔ Which products are frequently purchased together
✔ What items increase order value when suggested together
✔ How to create effective cross-sell & upsell strategies for more revenue

Example from a Shopify Store:
A Shopify store selling fitness gear noticed that customers who bought yoga mats often added water bottles when prompted at checkout. By offering a “Wellness Bundle” (Mat + Bottle + Resistance Bands) at a 15% discount, they:

• Increased AOV by 25%

• Boosted repeat purchases

• Strengthened customer experience & satisfaction

🔥The result? More items per order = higher revenue without extra customer acquisition costs!

How to Apply Basket Analysis to Your Shopify Store?

1. Identify High-Value Product Pairs

Use data from Shopify analytics or DataDrew.io to discover products frequently bought together.

💡Tip:
If 70% of customers who buy a gaming mouse also buy a mouse pad, create a discounted bundle to encourage larger purchases.

2. Optimize Product Recommendations (AI-Powered Cross-Selling & Upselling)

Use AI-driven tools to suggest complementary products dynamically.

💡Tip:

• Cross-Sell Strategy: “Customers who bought this also bought…” (shown at checkout).

• Upsell Strategy: Offer a premium version of a product ("Upgrade to Pro for just $10 more!").

Why It Works?
Amazon makes 35% of its revenue from recommendations—this works because customers trust related product suggestions!

3. Leverage Smart Discounts & Free Shipping Triggers

Customers love a good deal! Basket Analysis helps you craft the perfect discounts to encourage larger orders.

💡Tip:

• “Buy More, Save More” Offers – (e.g., “Buy 2, Get 10% Off; Buy 3, Get 15% Off”)

• Free Shipping Thresholds – Encourage customers to add more items (“Get Free Shipping on orders above $75!”).

How It Works?
A clothing store increased AOV by 30% by offering free shipping for orders over $80—most customers added extra items just to qualify!

4. Create Personalized Bundles Based on Customer Behavior

Customers love convenience—offering curated "Frequently Bought Together" bundles makes their shopping easier while increasing your AOV.

💡Tip:
Use Basket Analysis to:
✔ Identify which products are often bought together
✔ Create "Perfect Pair" Bundles (e.g., Laptop + Laptop Bag + Wireless Mouse)
✔ Offer limited-time discounts on bundles to encourage purchases

Case Study:
A skincare brand noticed that customers who bought moisturizers often added serums when recommended. By bundling both at a 10% discount, they increased AOV by 40% in 3 months!

Final Thoughts: Data-Driven Growth for Your Shopify Store

Mastering Average Order Value (AOV) is key to scaling revenue without increasing customer acquisition costs.

Key Takeaways:
✔ AOV = Total Revenue / Total Orders
✔ Low AOV? Fix pricing, bundling, and upselling strategies
✔ Use Basket Analysis to find high-value product pairings
✔ Leverage DataDrew.io for automated insights & optimized sales

🚀 Want to maximize your Shopify store’s profits?
📊 Start using DataDrew.io to analyze customer baskets & increase AOV today!