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6 Ways to Increase Average Order Value for Your Online Business

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If you’re like most entrepreneurs, you’re always thinking about ways you can optimize your business to make more money, whether it’s increasing revenue or cutting costs. If you’re running an online store, one of the best steps you can take is increasing its average order value — in other words, the average dollar amount of products purchased by a single user in a single action.

Related: 105 Service Businesses to Start Today

Increasing average order value, assuming you can retain the same number of transactions, will increase your total revenue. It could also facilitate higher customer loyalty and increase the value of each new visitor who comes to your site.

The question is, what steps can you take to increase average order value?

One of the easiest steps you can take is introducing or raising the free shipping threshold. Psychological studies show just how much we love free shipping; we’re often willing to pay more, in total, for the order when shipping is free than if we’re forced to pay for shipping with a smaller total order. In other words, just offering free shipping could incentivize your customers to spend more........

© Entrepreneur

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