Why Should You Care About AOV and Increase It?

Why Should You Care About AOV and Increase It?

After constant efforts to run your dropshipping business, you finally managed to bring stable traffic and have a great conversion rate on your store. In this situation, how do you achieve substantial growth in sales and profits? In that case, it’s a good idea to improve AOV.

What Is AOV and Why Does It Matter

Average Order Value (AOV), as the name suggests, stands for the value of a single order. For example, when the total revenue is $3000 and the total number of orders is 100, AOV would be $30 (3000 divided by 100 orders), which means that your customers spend $30 per order on average.

The higher the AOV, the more you can get from the same number of customers. A higher AOV can not only offset advertising costs but also create greater profit margins on every purchase, which also means that raising AOV is a very efficient way to make a wide-range of discounts in promotional activities to promote sales and thereby increase sales revenue and profit.

4 Ways to Increase AOV and Grow Revenue

1. Set a minimum quantity of items for free shipping/free gifts/discounts

This is a very commonly used method to increase AOV. However, as the suppliers of your various items are different, so are their inventory addresses. You may need to pay quite a lot of shipping fees to have those packages sent out separately, which will lower your profit margins.

As for free gifts, the same gift may not be to everyone's taste, which also greatly reduces the attractiveness of “Buy N products to get gifts for free.” And too many discounts may cause customers to doubt the value of your products, thus reducing the reputation of your stores.

2. Create an order minimum for free delivery

When the total amount of goods in your customer's shopping cart is close to the free delivery threshold, setting up a pop-up window to remind him of that is great for promoting sales. But the consumption threshold is easy to cause customers’ antipathy.

3. Offer discounted upsells or cross-sells after customers pay for an order

When a customer has bought a pair of sports shoes, you can recommend discounted goods such as sports suits or sports socks and highlight that he or she can enjoy this discount because of her or his purchase of the sports shoes.

In this case, the buyer originally wants to buy a certain item, but he or she will hesitate whether to buy other promoted goods or not, which prolongs the conversion process and time of engagement, thus potentially leading to conversion loss. In addition, if the price of the promoted product or service is beyond your customers’ purchase power, it may frustrate them.

4. Offer Bundle or BOGO products discounts

Bundling together highly relevant products or selling them through "Buy N Get N" offers can not only shorten the time for customers to select relevant items, and reduce the pressure of making decisions, but also help customers better understand and apply the products. For example, the bundled sale of lawn mowers and lawn mower accessories will be more easily accepted by customers than the sale of lawn mowers alone.

With the interest and willingness to buy, your customer comes to your store to search for bundle and BOGO products and will find that a single item in a bundle/BOGO costs less than if the same item is purchased individually. Moreover, by forming a high relevance between items in a bundle offer instead of setting the consumption bottom line threshold, even if a single order costs a lot or includes shipping fees, it would not cause the customer's aversion, and it will be easier to boost conversions.

Because Bundle/BOGO offers are widely used, DSers has received a lot of feedback and demands about them. To this end, DSers has developed features for creating both Bundle and BOGO offers.

How Does DSers Help You Achieve Bundle Sales

Assuming you are selling a bag at $20, you can create a bundle of a bag and a purse with a selling price of $25 via DSers bundle mapping, and the AOV of the single order will be increased by $5.

The steps for bundling your products in DSers are as follows:

  1. Access your Shopify store to create a new product.
  2. Head to your DSers dashboard and access My Products to click the IMPORT SHOPIFY PRODUCTS button.
  3. Locate your newly created product and click on the icon on the right to import it to DSers.
  4. Access My Products page to find the product, and click on the Mapping Page button on the product card.
  5. From the pop-up window, access the Bundle tab and click on the Status button to activate the Bundle mapping.
  6. Map the variants you want to sell by clicking on Import supplier & Select variant.
  7. After one variant has been mapped, you can repeat the previous step to map other variants.
  8. After done with the bundle mapping, don’t forget to Save.

You are now able to sell one bag with one purse in one bundled offer!

You are now able to sell one bag with one purse in one bundled offer! - DSers

And the same is true of BOGO mapping.

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Get Advanced Plan to Activate Bundle and BOGO Mapping to Increase Your Revenue and Profits!


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