{"id":14591,"date":"2022-07-27T08:15:09","date_gmt":"2022-07-27T15:15:09","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14591"},"modified":"2024-06-10T09:52:18","modified_gmt":"2024-06-10T16:52:18","slug":"increase-average-order-value-during-the-holidays","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/increase-average-order-value-during-the-holidays\/","title":{"rendered":"How to Increase Average Order Value During the Holidays"},"content":{"rendered":"

The holiday season is a great time to leverage your fulfillment provider\u2019s <\/span>value-added services<\/span><\/a> to <\/span>increase your average order value<\/span><\/a>. It\u2019s historically the biggest buying season of the year and consumers are ready to buy gifts for themselves and loved ones.\u00a0<\/span>\u00a0<\/span><\/p>\n

You can encourage customers to add more to their cart by bundling products, promoting upsells, and adding specialty services like gift wrapping or custom messaging. Here are the best ways to increase your average order value during the holiday season.\u00a0<\/span>\u00a0<\/span><\/p>\n

What is AOV?<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n

AOV stands for average order value. It is an important growth metric to track for all ecommerce brands.<\/span>\u00a0<\/span><\/p>\n

To calculate your AOV, divide the total revenue from your store by the number of orders placed within the same time frame. Here\u2019s an example: if you make $1000 total per day from 25 orders, your average order value is $40. That means your customers cart total is, on average, $40.\u00a0<\/span>\u00a0<\/span><\/p>\n

To try and increase your AOV you want to set reasonable goals. Using the math above you might set a goal of $45 or $50 per order. It really depends on the value of your products\u2014setting a growth percentage might be a more obtainable goal for your brand than a set dollar amount.\u00a0<\/span>\u00a0<\/span><\/p>\n

By implementing tactics to increase your AOV, you\u2019ll be increasing your overall revenue and likely profit margin as well.\u00a0<\/span>\u00a0<\/span><\/p>\n

Create Seasonal Product Bundles\u00a0\u00a0<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n

Bundles increase the perceived value of your products. When products are bundled together customers will spend more money than if they purchased the same number of single items.<\/span>\u00a0<\/span><\/p>\n

The holidays are a great time to create product bundles because many people are looking for gift ideas and in general buying more. A product bundle could mean a shopper buys three of the same items, keeps one and gives two away. Or it could mean bundling accessories to go with a main feature product.<\/span>\u00a0<\/span><\/p>\n

Other than increasing the average order value (and cart size!), offering bundles is also a great way to expose customers to a wider variety of items. Another type of bundle, great for the holidays, is mixing and matching flavors or colors. Everyone loves seasonal items. For example, if you\u2019re selling scented candles, put a few together to make a \u201choliday set\u201d of scents.\u00a0<\/span>\u00a0<\/span><\/p>\n

Case Study: <\/span>How Magic Spoon improved their customers\u2019 experience with virtual bundles<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

One caveat when bundling products: if your fulfillment provider has the technology to facilitate virtual bundles, you\u2019ll have a much easier time setting these up than pre-kitten bundles. There is a significant <\/span>difference between virtual bundles and pre-kitten bundles<\/span><\/a>, but the biggest differentiators are time and cost. The biggest benefits to virtual bundling include:\u00a0<\/span>\u00a0<\/span><\/p>\n