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When it comes to running a profitable Shopify store, one of the most effective ways to grow revenue isn’t just driving more traffic—it’s increasing your Average Order Value (AOV). A higher AOV means more revenue from the same number of customers, which can offset rising ad costs and give your store a profitability edge.
But how do you encourage customers to spend more without making your store feel pushy or salesy? The answer lies in data-backed strategies and user-centric design. Let’s explore six proven ways to boost your Shopify AOV and why they work.
1. Use Tiered Discounts
Customers love a good deal—but they also love the psychology of unlocking better savings with larger purchases. This is where tiered discounts shine.
Why It Works:
The concept of spending more to save more taps into the psychological principle of reciprocity: customers feel like they’re getting extra value in return for their loyalty. According to research by HubSpot, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.
How to Implement:
Offer discounts like “Spend £50, get 10% off” or “Spend £100, get 20% off.”
Use Shopify apps like Automatic Discounts or Bold Discounts to automate offers.
Display the next spending threshold in the cart to encourage larger orders (e.g. "Add £15 more to unlock free shipping or 15% off!").
2. Bundle Products to Add Value
Product bundling encourages customers to buy complementary items together, often at a perceived discount.
Why It Works:
Bundles leverage the decoy effect, where customers perceive bundles as better value compared to purchasing items separately. A study by McKinsey found that effective bundling strategies can increase profits by as much as 30%.
How to Implement:
Create pre-selected bundles (e.g. “Skincare Starter Kit”) or let users build their own.
Use Shopify apps like Bundler – Product Bundles to set up bundles with dynamic pricing.
Highlight how much the customer saves when they buy as a bundle (e.g. “Save £15 with this bundle!”).
3. Upsell with Product Recommendations
Personalised upselling is one of the easiest ways to drive higher AOV. If customers are already in buying mode, relevant suggestions can nudge them to add more items.
Why It Works:
Amazon famously attributes 35% of its revenue to personalised product recommendations. Research by Accenture shows that upselling can boost AOV by 10-30%.
How to Implement:
Use apps like Frequently Bought Together or ReConvert Upsell & Cross-Sell to display complementary products.
Add upsells on product pages (e.g. “Complete the look” sections) and during checkout (e.g. “You might also like…”).
Prioritise high-margin or fast-selling products for upsell opportunities.
4. Offer Free Shipping Thresholds
Free shipping is one of the most compelling incentives for online shoppers. A Baymard Institute study found that high shipping costs are the top reason for cart abandonment.
Why It Works:
Setting a free shipping threshold creates an anchor for spending. For example, if free shipping kicks in at £75, customers may intentionally add extra items to avoid shipping fees.
How to Implement:
Set your threshold slightly above your current AOV (e.g. if your AOV is £60, set free shipping at £75).
Display a progress bar in the cart showing how close customers are to unlocking free shipping.
Highlight the benefit prominently in your store banner (e.g. “Free shipping on orders over £75!”).
5. Create Limited-Time Offers
Adding a sense of urgency can inspire customers to act quickly and spend more during a single visit.
Why It Works:
Limited-time offers trigger loss aversion, the fear of missing out on a deal. A 2023 study by PwC found that 60% of online shoppers made purchases due to time-sensitive promotions.
How to Implement:
Run flash sales or “Buy More, Save More” campaigns for a limited time.
Use Shopify apps like Countdown Timer Bar to display time-sensitive deals.
Combine urgency with exclusivity (e.g. “Offer valid for first 50 customers only!”).
6. Simplify and Streamline Checkout Add-Ons
Adding small, high-margin products at checkout can drive impulse purchases and increase your AOV without disrupting the customer journey.
Why It Works:
The psychology of micro-commitments means that once customers have decided to buy, they’re more likely to say “yes” to smaller add-ons.
How to Implement:
Use Shopify apps like Zipify OneClickUpsell to recommend add-ons at checkout.
Highlight practical products like gift wrapping, extended warranties, or related low-cost items.
Frame these add-ons as time-sensitive (e.g. “Add this now for £5—only available today!”).
Final Thoughts
Increasing your AOV isn’t about tricking customers—it’s about creating genuine value and a better shopping experience. From tiered discounts to free shipping thresholds, each strategy is designed to enhance customer satisfaction while driving higher revenue.
By implementing these data-driven techniques, you’ll not only boost your store’s profitability but also build lasting relationships with your customers.
Need help optimising your Shopify store to maximise AOV? Let e-seekers guide you through strategies tailored to your brand. Contact us today!