If you have an e-commerce business and you’re aiming to further increase your revenue, then you should always pay attention to your average order value (AOV). AOV refers to the average amount that your customer has spent per transaction. You get this value by dividing your revenue with your total orders both within a specific timeframe. So if you’ve made PHP 100,000 this month from 500 orders, that means your customers spent an average of PHP 200 per checkout. That amount then is your AOV, a metric that can give you an idea about your customers’ spending behaviors and whether your sales are growing or stagnating.
Higher AOV means more profit for your business, so it's crucial to always come up with ways to drive up your AOV. Here are some tips on how you can get your customers to spend more during checkout.
1. Offer a Hassle-Free Checkout Experience
Consumers turn to online shopping for their needs because they appreciate the convenience it gives them. If your checkout system or online payment processing service is clunky and unresponsive, then users are less likely to continue with their purchase. This can lead to low AOV. As such, it’s important to partner up with an online payment processing company that can help ensure a smooth checkout experience for your customers.
To help facilitate a seamless checkout experience for your customers, you can integrate Maya Checkout into your online store. Maya Checkout allows shoppers to easily make their payments whether it be through credit and debit card, e-wallet, or QR Ph.. Providing customers with a hassle-free checkout experience will lessen abandoned carts which then increases your AOV.
2. Upsell or Cross-Sell during Checkout
Before your customers get their online payment processed during checkout, you can use the opportunity to either upsell or cross-sell. Note the difference between the two. Upselling means convincing the customer to opt for a more premium version of the product or service they're planning to purchase. Meanwhile, cross-selling is offering other products or services that can complement their current purchase.
An example of upselling would be if your customer added an entry-level smartphone to their cart and you presented them with models that have higher specs to consider purchasing instead. Meanwhile, cross-selling would be something like if your customer bought a subscription to a photo-editing software and you offer a subscription for a video-editing program as well to go with it.
After the transaction, do make sure all their purchases—upsell or cross-sell items included—are reflected accurately in their invoice to prevent any confusion with the total order amount.
3. Set a Minimum Order Amount for Free Shipping Perks
Among online shopping circles, “free shipping” might as well be the magic words. Consider setting a minimum order amount that customers can aim for to get a free shipping option. This incentivizes them to add another item or two to their carts just so they can reach that minimum and thus qualify for the free shipping offer.
Do avoid setting the minimum order amount too high, however. If customers feel that the minimum order amount needed for free shipping is much too expensive, then they may just not bother with it altogether. Set the amount just enough to encourage customers to add a few more items to their cart without them worrying about going over their budgets.
4. Create a Sense of Urgency
Flash sales, one-time offers, and limited-time discounts are great ways to drive up your AOV as these create a sense of urgency that encourages customers to take you up on your offer. For example, you can offer two packs of the same item for a discounted price but only if they purchase the bundle in the next hour. This reduces the chances of items being forgotten in their carts, seeing as they’d have to check out within a time limit or else the offer disappears.
5. Sell Product Bundles
Another way to increase your AOV is to offer bundle versions of your existing products and present them as a more economical alternative for customers who are otherwise interested yet can't justify buying each item in the bundle individually. For example, if you have a business selling homemade jams with different variations, you can create a separate product listing that has all your existing variations except they’re in smaller containers. This bundle can then be sold as a more affordable option compared to buying all your regular-sized jams while still being a large enough purchase to drive up your AOV.
Holiday-related bundles can also be popular, especially if they come with appropriate theme packaging. Bundles packaged in baskets or gift boxes can be directly given as gifts, so customers are more likely to purchase them to avoid the hassle of wrapping them up themselves.
Increase Your Store’s Average Order Value Today via Maya Checkout
Abandoned carts can result in low AOV. Encourage your customers to complete their purchases by having a quick and easy checkout process through Maya Checkout. Sign up for Maya Business today to fully utilize this online payment solution.
Partnering up with Maya Business also means being able to open a Maya Business Deposit account. Not only is it convenient for managing your business finances, it also offers a 2.5% per annum interest rate for your funds. With this market-leading rate, your PHP 1 million deposit can earn up to PHP 25,000 in interest per year. What’s more, you get to enjoy free money transfers to your partners and suppliers via InstaPay and PESONet.
In addition, signing up for a Maya Business account qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months. Using Maya as your primary processor for wallet and card payments regularly can even get you a better loan offer in the future. This additional fund can then go into helping your business to grow further.
Don’t hesitate to sign up for Maya Business today and let our online payment solutions do wonders for your e-commerce business.
