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WEB PROFITS
whwytriright 10 Increasing Average Orders
Here are four ways to
increase your customers’
average order value:
1) Increase Product Price.
Th is is the most obvious method of increasing revenue,
yet you must understand what your market is willing
to pay and be conscious of your competitors’ prices.
You can off er a similar or same product at a premium price to
competitors (I’ve done this a number of times with great suc-
cess), as long as you diff erentiate yourself from them in some
reach a certain threshold. If you want your average order
form. You must make the customer see that the perceived
value to be $45, for example, then you may want to consider
value of your product is bett er than they would receive from
off ering free shipping for all orders $45 and over.
a competitor. Th is can be accomplished a number of ways.
2) Cross Selling of
4) Create Product Bundles.
A great way to increase average order value is to develop
Similar Products.
combinations of products that when bought separately would
Cross selling products, just because you can, is a bad idea. I cost more. For example, let’s say you sell Apple iPods. You
oft en see store owners cross selling unrelated products in an have an iPod Nano for $149.95 and a car adapter priced at
eff ort to increase sales. I ask them why, and the majority come $54.95 (a separate cross sell). Th ese items are likely to be
back with the same answer: Th ey are convinced that if the purchased together, yet when purchased as individual items,
customer does not like the fi rst product, they will click on a customer would have to pay a total of $204.90. By creating
another product that might interest them. Th is works when a bundled product, which includes both items for just $175,
the products are related, but oft en has the opposite eff ect you increase your order value from what could have been just
when the products have litt le in common. $149.95. Th ink of it as cross selling at a discount. Providing
Th e question I ask is: would you click on a pack of bat- you’ve priced it correctly, your customers will see it as a deal
teries that were being cross sold to you if the original product that can’t be passed up.
you were viewing was a shirt and pants? I doubt it, as the two Th ese are just a few examples of the ways you can increase
are completely unrelated. Th e primary goal of a cross sell the average order value of your customers, and increase the
should be to increase the customer’s average order value by revenue your store generates. With proper planning and
off ering them a related item which they can add to their cart, implementation, you can achieve an average order value with
in addition to the item they are currently viewing. your current traffi c levels that will put you well on your way
toward reaching your ultimate revenue goals. WW
3) Free Shipping Offers
Eric Leuenberger is an ecommerce conversion expert and author of a
With Constraints.
leading Ecommerce Optimization blog (www.zencartoptimization.com).
He coaches etailers, wholesalers, distributors and manufacturers to
It’s no hidden secret that free shipping works. In fact, the
increase their website sales through online paid search advertising, tar-
majority of Internet shoppers expect free shipping in some geted marketing strategies and website sales strategies. Contact him at
form. You can take advantage of this and also increase your
1-877-481-2323.
average order value by off ering free shipping for orders that
Find this story in our complete article archive at: www.wholesalecentral.com/Wholesale–News
12 May 2009
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