What Is Average Order Value? (+7 Ways to Increase AOV)

In the world of e-commerce, not all customers are created equal, and not all orders are equally valuable. Many brands obsess over traffic and conversions, but overlook a powerful lever hiding in plain sight: Average Order Value (AOV).

Average Order Value E-commerce

Improving AOV doesn’t just increase revenue, it makes your marketing more efficient, helps you recoup CAC faster, and gives you room to reinvest in growth. Whether you’re a new store owner or scaling a DTC brand, knowing your AOV and optimizing for it is non-negotiable.

In this guide, we’ll break down what AOV is, how it’s calculated, industry benchmarks, why it matters, and 7 proven ways to increase it without alienating your customers. Once you complete reading this article, you’ll have an in-depth knowledge of how to increase average order value. 

What Does Average Order Value (AOV) Mean?

So, what is Average Order Value? Average Order Value (AOV) is a core metric in e-commerce. It represents the average amount a customer spends per transaction. Knowing your AOV helps you understand the quality and impact of your traffic and whether your business is truly sustainable.

Formula: AOV = Total Revenue / Number of Orders

For instance, if your store generated $12,000 from 300 orders last month, your AOV is $40. This tells you how much value you’re extracting from each sale, and whether your pricing, bundling, and upselling tactics are working. Obviously, you’ll be eager to find out the ways to improve online store AOV. Don’t worry, we’ll discuss all. 

Tracking AOV helps you set better goals for customer acquisition, advertising efficiency, and product margin. Combined with CAC and LTV, it becomes a critical component of your unit economics. A higher AOV means more breathing room on every campaign. However, before finding ways to increase AOV, first, you’ll need to set the e-commerce AOV benchmarks. 

AOV can also help you segment your customer base. Are some segments spending more than others? Which behaviors correlate with larger orders? These insights help you refine your offer strategy across the board. When you understand all the concepts of AOV and the true meaning of what average order value is, all these will become easy to understand for you. Let’s proceed to discuss them all in detail. 

What Is the Average Order Value for eCommerce Stores?

AOV or average order value e-commerce varies significantly depending on your niche, audience, and product types. Below are some current industry averages based on 2024 data from IRP Commerce and Shopify analytics:

• Fashion & Apparel: $85–$120
• Beauty & Skincare: $60–$95
• Consumer Electronics: $140–$200
• Food & Beverage: $35–$60
• Home & Furniture: $100–$250

These e-commerce aov benchmarks give you a rough idea of where you stand, but AOV should always be contextualized within your business model.

For example, a store selling high-ticket items may have a high AOV but lower purchase frequency. Meanwhile, consumables like snacks or cosmetics may have lower AOVs but repeat often. In such a case, you’ll often wonder how to increase average order value, right? That’s why it’s essential to look at AOV in tandem with:

• Customer Lifetime Value (LTV)
• Customer Acquisition Cost (CAC)
• Conversion Rate (CVR)

If you’re spending $45 to acquire a customer and your AOV is $40, you’re operating at a loss, unless you have strong retention. But increasing that AOV to $60 could turn that same funnel profitable almost instantly. That’s how you can improve online store AOV. 

Why Is AOV Important?

When you understand the importance of AOV, you’ll get clear knowledge about Average Order Value in e-commerce. AOV is not just a performance metric, it’s a profitability lever. When AOV goes up, so does your flexibility to acquire more customers, invest in better experiences, and scale faster.

Think about it: if your AOV is $30 and you increase it to $45, that’s a 50% increase in revenue per order, without needing a single new customer. This allows you to spend more on ads while keeping margins healthy, or reinvest in better fulfillment, support, or product R&D.

AOV for e-commerce is also a signal of shopping intent. If your customers are adding multiple items, upgrading to higher-priced versions, or engaging with bundles, you’re delivering value. And value is the foundation of long-term retention.

High AOV doesn’t just make your bottom line look better – it validates your pricing, your merchandising, and your ability to create meaningful shopping experiences.

In short, optimizing to improve online store AOV is about building a smarter, more sustainable eCommerce business that thrives even as acquisition costs rise. 

7 Proven Strategies to Boost Your AOV

1. Offer Product Bundles and Kits

Bundling complementary products is one of the simplest and most effective ways to increase ecommerce AOV benchmarks. When you offer a curated kit, like a “Complete Skincare Set” or a “Starter Tech Pack”, customers are more likely to buy multiple items in one go. 

The key is to make the bundle feel cohesive and convenient. Studies show that well-positioned bundles can increase average order value in e-commerce by up to 30%. Make sure the total price offers a slight discount versus buying items individually, and use anchor pricing to emphasize value.

Example: If your moisturizer costs $25 and serum costs $35, bundle both for $50 and highlight the $10 savings. This not only boosts cart value but reduces friction in decision-making. This is another example of improving average order value e-commerce. 

2. Use Volume Discounts and Threshold Incentives

“Spend $75 and get free shipping” is more than just a promo; it’s a classic AOV booster. Volume-based incentives (e.g., buy 2 get 1 free) or threshold-based offers encourage shoppers to spend just a little more to unlock a reward.

These tactics work well because they align your goals with the shopper’s self-interest. Whether it’s free shipping, a free sample, or loyalty points, giving users a reason to spend more unlocks higher order values without feeling like a hard sell.

Make sure the threshold feels achievable and aligns with your average product pricing. Test different e-commerce aov benchmarks to find the sweet spot that maximizes both AOV and conversions.

3. Implement Smart Upsell and Cross-Sell Tactics

Upselling isn’t about being pushy; it’s about helping users get more value. Suggest a premium version, a complementary item, or a refill when the user is already primed to buy. Apps like Rebuy and Bold Upsell automate the increment of average order value e-commerce based on cart content.

Example: If someone adds a yoga mat, recommend a premium carry case or a stretch band. Or if they’re buying a coffee maker, suggest filters or accessories. The best upsells are timely, relevant, and visually unobtrusive.

According to BigCommerce, upselling can boost revenue by 10–30% depending on placement and timing. Cart pages, post-add-to-cart modals, and post-purchase pages are great spots to test.

4. Highlight Limited-Time Offers and Scarcity

Urgency drives action. A limited-time offer or stock-based countdown can nudge users to add more to their cart before the deal disappears. Scarcity also makes products feel more exclusive, a powerful psychological trigger.

You don’t need to be aggressive. A simple “Only 3 left” or “This bundle expires in 2 hours” message adds subtle pressure. Use this on high-margin bundles or during key sale periods like BFCM.

Keep the messaging honest; false scarcity can hurt trust. Pair countdowns with real-time inventory alerts or seasonal campaigns to make them feel authentic.

5. Create Loyalty Programs That Reward Bigger Carts

Loyalty programs aren’t just for retention; they’re powerful AOV tools. Reward customers for hitting spend tiers, purchasing bundles, or trying new categories. Visual progress bars (e.g., “Spend $12 more to earn 2x points”) increase engagement.

Platforms like Smile.io and Yotpo make it easy to set up tiered rewards. Make sure the rewards are clear and attainable. Points can be redeemed for future discounts, gifts, or early access to new drops.

According to Harvard Business Review, emotionally connected customers spend twice as much. Loyalty programs help build that connection by making users feel recognized and rewarded. Ultimately, increasing the average order value in e-commerce. 

6. Showcase “Frequently Bought Together” and User Curation

Amazon’s “Frequently Bought Together” isn’t just for convenience. It’s an AOV powerhouse. This feature reduces choice overload and subtly encourages multi-item orders.

Add this module to your product pages using Shopify apps like Also Bought or Checkout Boost. Even better: allow users to build their own bundle via quiz flows or curated checklists. Interactive tools increase average cart size and improve user satisfaction.

The goal is to make adding more feel natural, not like a chore. Use visuals and reviews to reinforce why the combination works well.

7. Launch a Mobile App

If you want a more creative way to increase average order value, while getting a host of other benefits, launch your own branded mobile app.

Data from IRP Commerce shows 56% of e-commerce revenue comes from mobile devices. According to Statista, Smartphones account for 74% of retail website visits and 63% of orders.

This data shows us a couple of things.

• More people shop and make purchases on mobile devices than on desktops.
• Desktop has a comparatively higher average order value, as mobiles’ revenue share is lower than their share of visits and orders.

The takeaway is that it’s harder to convert visitors on mobile, mostly due to the suboptimal user experience offered by mobile websites.

You can fix that by launching an app. The app experience is smoother, faster, and more immersive than mobile websites, resulting in more time spent shopping in apps, more products viewed, and higher conversion rates.

The better customer experience correlates to a higher AOV.

Besides AOV, there are many additional benefits you can get from launching your own app, such as increased retention (and thus higher CLV), increased trust (which leads to a higher conversion rate), and the ability to get into the app stores, which provides a low-cost acquisition channel and makes your brand look more authoritative.

Read More: How to Create an App Without Coding?

How to Easily Create a Mobile App for Guaranteed ROI

You don’t need a massive team or a big budget to launch a mobile app that drives real results.

Mobile apps aren’t just about being “modern” – they’re about owning a high-converting, personalized channel that works 24/7. They offer something most websites and emails can’t: speed, convenience, and focus. And that directly impacts AOV.

With a mobile app, your customers aren’t distracted by browser tabs or slow checkouts. They open your app, stay logged in, and move seamlessly from discovery to purchase. That’s how you reduce drop-offs and increase cart size, not through pressure, but through ease.

Apps also let you build exclusive value. Think app-only bundles. Early access to drops. Loyalty perks that feel earned, not just given. According to Criteo, users are 3x more likely to convert in an app than on mobile web. That kind of intent is rare, and it’s worth capturing.

Here’s the good news: you don’t need to build from scratch. No code mobile app building tools like Twinr let you convert your Ecommerce store into a fully-branded app, without code, without delays. You stay in control, your store syncs in real time, and you get access to powerful features like push notifications, loyalty tiers, and in-app promos.

The result? A faster path to ROI. Because you’re not just creating an app, you’re building a channel you own, where every session is optimized for higher order value and stronger retention.

If AOV and LTV are part of your growth goals, a mobile app isn’t just helpful. It’s your next smartest move.

Final Thought: AOV Is Your Quiet Revenue Multiplier

You don’t need more traffic to grow, you need better transactions. Improving AOV gives you more profit per visitor, more margin to spend on ads, and a better foundation for loyalty and LTV.

It’s not about pushing customers to buy more. It’s about creating smarter experiences that help them find more value. Bundles, perks, and personalization work when they’re thoughtful, not just promotional.

Start by identifying your current average order value ecommerce, then pick 1–2 strategies above to test. Even a $5 bump in AOV can mean thousands in added revenue per month.

And the best part? These strategies work across niches, business sizes, and platforms, whether you’re a solo founder or part of a fast-scaling DTC brand.

Make AOV part of your growth playbook, not an afterthought. This was all about how to increase average order value.