How to Increase Average Order Value on Shopify: 12 Proven Strategies

Why AOV Matters More Than You Think

Average Order Value (AOV) measures how much customers spend per transaction. It's one of the three core metrics that determine your store's revenue:

Revenue = Traffic × Conversion Rate × AOV

While most merchants focus on traffic and conversions, AOV is often the easiest lever to pull. Here's why^[1]:

• Lower customer acquisition costs

  Health & beauty brands pay an average of $127 to acquire a customer. Getting existing customers to spend more costs almost nothing.

• Compounding profit impact

  If your AOV is $50 with 25% margin, you earn $12.50 per order. Increase AOV to $75, and you earn $18.75—a 50% profit increase from the same customer.

• Better marketing ROI

  Higher AOV means more revenue from the same ad spend.

AOV Benchmarks by Industry

Before optimizing, know where you stand. Here are current benchmarks^[2]:

Shopify-Specific Benchmarks

• Average Shopify AOV: $85-92
• Top 20%: $192+
• Top 10%: $311+^[3]

How to Calculate Your AOV

The formula is simple:

AOV = Total Revenue ÷ Number of Orders

1. Upselling

What it is: Encouraging customers to buy a more expensive version of a product.

Upselling is the most commonly used AOV strategy, capable of increasing revenue by 10-30%^[1].

How to Implement

• Show product comparisons

  Highlight premium benefits side-by-side with standard options.

• Limit price increases to 25-50%

  Keep upgrades within reach to maximize conversion rates.

• Use social proof language

  Phrases like "Most Popular" or "Best Value" guide decisions.

• Show what they are missing

  Highlight features unavailable in the lower-tier option.

Recommended Apps

Bold Upsell, Zipify OneClickUpsell, ReConvert, Selleasy. See our best upsell apps guide for details.

2. Cross-Selling

What it is: Suggesting complementary products to what's in the cart.

Amazon attributes 35% of its revenue to cross-selling^[5]. The classic "Customers who bought this also bought" approach works because it leverages social proof.

How to Implement

3. Product Bundling

What it is: Grouping related products and selling them at a slight discount.

Bundling works because customers perceive greater value, and you increase units per order.

Bundle Types

• Pure bundles

  Products only sold together—creates exclusivity.

• Mixed bundles

  Available separately or as a bundle at a discount—offers flexibility.

• Themed bundles

  "Starter Kit," "Gift Set," "Complete Collection"—appeals to specific needs.

Best Practices

4. Free Shipping Thresholds

What it is: Offering free shipping when orders exceed a certain amount.

This is one of the most effective AOV tactics. Customers hate paying for shipping and will often add items to qualify for free delivery^[6].

How to Set Your Threshold

Implementation Tips

• Display a progress bar

  Show customers how much more they need to spend for free shipping.

• Show messaging throughout

  Remind customers on product pages, cart, and checkout.

• Use specific language

  "You're $15 away from free shipping!" is more compelling than generic messages.

5. Volume/Tiered Discounts

What it is: Offering better per-unit pricing when customers buy more.

This works especially well for consumable products: supplements, coffee, skincare, pet supplies.

Example Structure

Best Practices

• Display per-unit cost at each tier
• Use visual cues to highlight the "best value" option
• Consider subscription options alongside volume discounts

6. Post-Purchase Upsells

What it is: Offering additional products immediately after checkout.

Post-purchase upsells appear between payment and the thank-you page. Since the original sale is complete, there's zero risk—you're only adding upside^[7].

Why It Works

• Customer is in buying mode

  They just made a purchase decision and are primed to buy more.

• One-click purchase

  Payment info is already stored—no friction to complete the upsell.

• Zero risk to initial conversion

  The original sale is already complete before the upsell appears.

• High conversion rates

  Expect 10-15%+ conversion rates on well-targeted post-purchase offers.

Learn more in our one-click upsells guide.

7. SMS Upsells

What it is: Sending personalized product offers via text message after purchase.

Most AOV tactics only work while customers are on your site. SMS extends your reach beyond the checkout moment—capturing customers who left without seeing your post-purchase offers.

Why SMS Outperforms Email

How Upsella Works

Upsella automatically sends AI-powered SMS upsells after purchase:

• AI-powered recommendations

  Analyzes purchase history for relevant product suggestions.

• One-tap purchase links

  Frictionless buying experience directly from the text message.

• Flexible timing

  Send post-checkout, at shipping, delivery, or custom intervals.

• Works on any Shopify plan

  No enterprise requirements or complex integrations.

See how it works →

8. Loyalty Programs

What it is: Rewarding customers for spending more per transaction.

Loyalty programs increase both AOV and customer retention. Structure rewards to incentivize larger orders^[9].

AOV-Focused Tactics

• Bonus points for larger orders

  Reward orders over a certain threshold with extra points.

• Spending-based tiers

  Gold, Platinum tiers unlock based on cumulative spending.

• Time-limited multipliers

  "Double points today on orders $100+"

• Early access rewards

  Give top-tier members early access to sales and new products.

9. Limited-Time Offers

What it is: Creating urgency with time-sensitive deals.

Urgency accelerates purchasing decisions. Charlotte Bio, an organic cosmetics store, ran a six-hour flash sale and generated 17% of monthly sales in one day^[1].

Effective Tactics

• Flash sales with countdown timers

  Visual urgency drives immediate action.

• Threshold-based gifts

  "Today only: Free gift with orders $75+"

• Limited inventory alerts

  "Only 3 left in stock" creates scarcity.

• Seasonal promotions

  Holiday and event-based offers feel natural and timely.

10. Flexible Payment Options

What it is: Offering buy-now-pay-later (BNPL) options.

BNPL services like Klarna, Affirm, and Afterpay let customers spread payments over time. This removes price barriers for larger purchases.

Impact on AOV

• Higher comfort with expensive items

  Customers feel more comfortable buying premium products.

• Reduced cart abandonment

  Payment flexibility prevents drop-off on high-ticket items.

• Best for specific categories

  Particularly effective for fashion, electronics, and furniture.

11. Smart Product Recommendations

What it is: Using AI/algorithms to suggest relevant products.

Personalized recommendations outperform generic suggestions. AI can analyze browsing behavior, purchase history, and what similar customers bought.

Where to Show Recommendations

12. Minimum Order Values

What it is: Requiring a minimum spend to complete checkout.

This is aggressive but effective for certain business models (wholesale, low-margin products). Use carefully—it can also increase cart abandonment.

Softer Alternatives

• Minimum for free shipping

  Not required to checkout, just to get free delivery.

• Minimum for special discount

  Unlock a percentage off when spending above threshold.

• Small order fees

  "Orders under $25 incur a $5 small order fee"—transparent pricing.

Conclusion

Increasing AOV is one of the most cost-effective ways to grow revenue. Unlike acquiring new customers, getting existing buyers to spend more requires minimal additional investment.

Quick Wins to Start Today

For more on upselling specifically, see our best upsell apps guide and upsell types comparison.