Using AOV Marketing Strategies to Scale Your Revenue

by | Dec 8, 2023 | Ultimate Special Offers, Wholesale Hub

As a retailer, your store’s average order value (AOV) is an important metric for your marketing team to pay attention to. It can help with problem-solving when revenue dips and be a guide to creating more effective marketing plans. 

Once you have a firm understanding of how to affect your average order value and know what works (and what doesn’t) for your customers, you’ll be able to hit the ground running. Your focus can shift to customer acquisition and retention knowing that your AOV marketing strategy will convert to higher total revenue in both areas.

In this article, we’ll give you everything you need to know about what your average order value is. We’ll show you how to calculate your current AOV and provide some of the best strategies and tools to help you manage it. Plus, you’ll gain tips and tools for marketing campaigns that allow you to actively drive your AOV for a more successful ecommerce business.

What Does AOV Stand For in Marketing?

AOV – which stands for average order value – is an important metric in ecommerce and is often used as a marketing key performance indicator (KPI). It shows you the average amount your customers are spending per order in a given timeframe. It’s a simple concept that can be applied to data-driven marketing strategies to make a big impact on your bottom line.

If you have multiple ways for customers to make purchases — perhaps you have a Shopify store, a brick-and-mortar location, and an occasional pop-up shop — you should calculate the AOV for each separately to get a clearer picture of customer behaviors in each lane.

Once you know what your current AOV is, you’ve got a new KPI for your marketing efforts. You can begin trying new ways to increase it, thereby increasing your revenue with your existing customer base. That’s a smart strategy because it’s more cost-effective to retain customers than to acquire new ones. 

It’s also easier to secure a purchase from an existing customer over a new one. In fact, as noted in YourStory.com’s article on the topic, “The probability of converting a sale with an existing customer is 60%-70% whereas the probability of the same with a new customer is 5%-20%.”

When you look at AOV from this angle and manage it as a KPI, you’ll start to see the additional benefits across your ecommerce metrics in terms of ROI, profit margins, time expenditures, and more. For example, your shipping costs will be lower if you can make more money from the same 100 customers instead of shipping smaller values to 200 customers.

Doing the Math: How Do You Calculate AOV in Marketing?

AOV marketing formula illustration

Calculating Your AOV is a simple math equation for finding averages. Take the total revenue for the time frame you’re monitoring, and divide it by the total number of orders in the same period of time. Let’s look at some examples.

If you had $5,100 in revenue last week across 100 orders, your AOV is $51 for that period. Is that good? To find out, you’ll want to compare it to some other weeks. Hopefully, you’ll find that your AOV is fairly stable. If it’s not, dig deeper to understand why.

Now let’s say you run a great deal on an expensive product this week and bring in $6,700 with 200 customers. Your AOV is going to be $33.50, much lower than last week. You’ve got more revenue and more customers, but the average order value is low because of the big price break you gave them.

You’ll want to compare these AOVs to the last several weeks as well, so you can start to see patterns emerge. You might look at the data and discover that many of the buyers during the sale week are new customers. In this case, it might be worth deciding that your AOV goal simply should be lower during sales weeks because of the high customer acquisition rate.

On the other hand, you may find that the sale buyers are already regular customers. They’re happy about getting a great deal, but you know they are willing to spend more because of the benchmarks in the previous weeks. In this case, you’ll want to set goals to improve your AOV during the weeks you plan to run a sale like that.

Improve Your Results With These AOV Marketing Strategies and Tools

Miniature boxes and shopping cart

When you know you want to increase the average order value in your ecommerce store, there are many ways to make it happen. Some AOV marketing strategies are centered on selling more products while others offer incentives that encourage shoppers to spend more in creative ways.

Upsells and Cross-Sells

Upselling and cross-selling is one of the best types of marketing efforts to implement when you’re trying to increase sales, and it’s a great place to start for AOV marketing, too. 

An upsell is when a customer shows an interest in something and you present a more expensive option instead. They might be shopping for a new bedspread blanket and find a nice basic option for $45. As they scroll down to see the details, they’re presented with an ad for a much nicer bedspread made of more luxurious materials for $80. If they choose this one, you’re on your way to improving that AOV.

Another common AOV marketing strategy to increase the average dollar amount of each order is to get customers to buy more items. You might do this with cross-selling — showing them related products that make sense with the items they are already shopping for. If they are looking at hardware supplies and have a hammer and screwdriver set in their shopping cart already, you might set a pop-up ad to remind them to get a few boxes of nails and screws with it. Even low-priced items will help your average once they reach the checkout.

You can easily implement your upsell and cross-sell strategies with the Upsell and Post-Purchase Upsell offer types in Orbit’s Ultimate Special Offers Shopify app.


Alternatively, you could have preset product bundles for popular items in your Shopify store. If your store sells children’s clothing, for example, you might have holiday dresses that are already priced higher than a lot of basic dresses. That’s great for your AOV, but you can turn it up a notch by offering cute bundles that include a dress, tights, shoes, and gloves for a set price.

We’ve seen this AOV marketing strategy used effectively by a gourmet popcorn company. They create bundles of different flavors and types of treats to sell more. Whatever your niche is, the customer gets everything they need in one transaction at a higher spend.

While it sounds simple on the surface, creating bundles that show up correctly in your Shopify carts can get a little tricky. You’ll want to use the Bundle tool in the Ultimate Special Offers app to set up your bundles effectively. Getting this right will save you tons of time and headaches by preventing customer service issues.


Buy One Get One (BOGO) deals are a good way to sell additional products while increasing revenue on each order. With this pricing strategy, you choose products that you want customers to buy in multiples and offer them a discount for doing so. 

Choose carefully to protect your gross profit margins. Depending on the product, you may want to offer a BOGO deal that gives them 30% off the second item, 50% off the second item, or any other number that will be perceived as a particularly good value. If you promote your BOGO sales well and set them up correctly on the back-end with the Ultimate Special Offers app, it can also increase customer loyalty as they’ll look forward to your next big BOGO.

Volume Discounts

Volume discounts – where customers can save more when they buy more –- are another clever AOV marketing strategy. You can use this strategy with consumers and wholesale buyers. While your profit margins may be a little smaller per item, the amount of money buyers tend to spend is higher, and you’ll save on the packing and shipping side.

This shift can make a huge difference for brands that sell small items with low price points. If you sell products that need to be replaced and replenished as they’re used, like the Element Tattoo Supply shop does, your average order value will benefit from offering volume discounts, too.

Orbit’s Shopify apps can help you with this strategy. On the consumer side, you can set up a volume discount with the Ultimate Special Offers app, and on the wholesale side, you can use the Wholesale Club app to offer whole prices for bulk quantities right from your online store.

Threshold Incentives

One of the more subtle ways to increase your AOV is to offer free shipping as part of your strategy. For this to work, you’ll need to look at how many of your shoppers are exceeding your AOV goal naturally and how many don’t come close to it. This will help you get an idea of what the minimum purchase should be for customers to reach the free shipping threshold.


You can further improve your chances of higher AOV by marketing whatever deals you choose with customer segmentation strategies for emails, social media, and pop-up or banner ads. These campaigns should target the segments of people who are most likely to reach your customer spending goals.

With Orbit’s Pixelpop app, you can drive traffic to your other AOV marketing strategies and increase conversions.

Boost Your Bottom Line With AOV Marketing

When you start using average order value as a KPI and create a strong AOV marketing plan, your ecommerce sales will thrive. The math is pretty easy, and once you determine your new goals, you can decide which strategies and incentives will work best for your customers and products. Whether you start with BOGO deals, upsells, volume discounts, or any of the other possibilities discussed above, the AOV marketing efforts that support it will make a big difference in your success.

You can set up your deals by using some of the tools available within the Shopify platform to get started. However, when you want to get creative or blast your AOV marketing campaigns to the next level, Orbit Apps has got you covered with the Ultimate Special Offers, B2B Wholesale Club, and Pixelpop Shopify apps. Install apps by Orbit today to elevate the customer experience in your ecommerce store and your bottom line!

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