You’re getting sales on Amazon, but are you making the most out of every order?
Instead of just selling a single product, what if you could get customers to add more to their cart? That’s how successful Amazon sellers boost their revenue per transaction.
However, many Amazon sellers struggle to identify effective strategies to encourage larger purchases, leading to missed revenue opportunities. Let’s explore six Amazon AOV strategies that drive higher sales and enhance customer satisfaction.
What is the Average Order Value(AOV)?
Average Order Value (AOV) is a metric that calculates the average revenue generated from each customer order. It is calculated using the following formula:
For instance, if your store generates $10,000 from 500 orders in a month, your AOV would be $20. AOV is an essential Key Performance Indicator (KPI) for sellers on platforms like Amazon. By monitoring AOV, sellers can gain insights into customer spending habits and overall purchasing behavior.
A higher AOV indicates that customers are spending more per transaction, which can enhance cash flow and overall business performance.
Strategies to Increase Amazon AOV
Enlisted below are the strategies digital sellers can use to increase their Amazon AOV.
Bundle Complementary Products
Product bundling is an effective way to encourage customers to purchase more items. Amazon allows sellers to set up bundles via its Amazon Virtual Product Bundle tool, making it easy to market related products together.
For example, bundling a camera with essential accessories like a tripod and memory card can enhance the customer’s experience and boost AOV. By combining related products into a single package, you provide added value and convenience, which can lead to larger purchases and increased sales.
READ MORE | Struggling to Price Your Product Bundles? Dive into Bundle Pricing Explained with Examples
Provide Discounts For Buying In Bulk
Implementing bulk purchase discounts incentivizes customers to buy larger quantities of a product. This increases the order size and helps in moving inventory quickly.
Amazon’s “tiered pricing” model allows sellers to offer discounts for higher quantities, such as “Buy 2, get 5% off” or “Buy 3, save 15% off.” These discounts encourage shoppers to add more individual items to their cart to save money.
Brands can leverage this program to increase their Average Order Value (AOV) on Amazon, driving higher revenue per transaction while offering added value to customers.
Set Free Shipping Thresholds
According to research, 8 out of 10 online shoppers are willing to meet the minimum purchase threshold to avoid shipping charges. Therefore, establishing a minimum purchase amount for free shipping encourages customers to add more items to their carts to qualify for the benefit.
For example, if a seller sets a free shipping threshold of $50, customers with a cart value of $40 might add more items to reach that amount. This increases AOV and enhances customer satisfaction.
Encourage Upselling And Cross-Selling
Upselling involves persuading customers to purchase a higher-end product than the one they are considering, while cross-selling suggests complementary products.
While upselling, sellers can highlight premium products or higher-priced versions to persuade customers to choose the higher-value items and elevate AOV.
Moreover, during cross-selling, sellers can use features like Amazon’s “Frequently Bought Together” or “Customers Also Bought” recommendations. This usually showcases relevant items that complement the original purchase, such as a phone case with a smartphone. Since customers purchase additional products, you can enhance the Amazon AOV.
READ MORE | Want to Implement Upselling and Cross-selling Effectively? Check our Upselling vs. Cross-Selling: Strategies to Drive Revenue Growth
Offer Limited-Time Promotions And Discounts
Consumers tend to act faster when they feel a time constraint on a deal. This psychological trigger increases the perceived value of a discount and reduces hesitation in purchasing decisions.
You can use price monitoring software to track competitor pricing and discount trends to recommend the ideal discount percentage that maximizes order value without sacrificing margins.
Based on this, you can conduct flash sales, time-sensitive discounts, or Amazon Lightning Deals to encourage customers to buy more items quickly. When buyers believe a deal is about to expire, they are more likely to add additional products to their cart to maximize their savings, thereby increasing AOV.
Leverage Amazon’s “Subscribe And Save” Feature
Amazon’s “Subscribe and Save” program offers customers discounts on subscriptions to regular product deliveries. This ensures continuous sales without relying on repeated visits to your listing. For instance, customers receive a 15% discount when they buy five or more Cetaphil Body Wash.
With the Subscribe & Save option, you can increase customer retention, lower marketing costs, and boost visibility without relying on high-cost ads. It increases predictable revenue while managing order volume efficiently.
Conclusion
Maximizing your Amazon Average Order Value (AOV) is one of the most effective ways to enhance your profitability without solely relying on increasing traffic. By implementing the above-mentioned Amazon AOV strategies, you can encourage customers to spend more per transaction.
Unlock the Potential of your Amazon Sales.
FAQs
A good AOV varies by product category, but generally, higher-priced items tend to have a larger AOV. Many sellers aim for an AOV between $25-$50, though premium products can push this higher.
You can calculate your AOV using this formula:
AOV = Total Revenue ÷ Number of Orders
For example, if your total revenue is $20,000 from 800 orders, your AOV is $25.
Yes, Amazon Seller Central provides detailed analytics on sales and order values. Additionally, third-party tools like Helium 10, Jungle Scout, and MetricsCart offer deeper insights into AOV trends.
The timeline varies depending on the strategy. Limited-time discounts and bundling can yield quick results, whereas loyalty programs and upselling tactics may take a few months to show a significant impact.
Both are important, but increasing AOV ensures you generate more revenue per visitor, making your existing traffic more profitable. Ideally, a balanced approach that increases both AOV and traffic yields the best results.
