Average order value grows when it is easy and worthwhile for the customer to add one more item: because of a free shipping threshold, a ready-made bundle or a fitting suggestion in the cart. Here are 10 ways, how to measure them and where on the site each one belongs.
How to calculate average order value
Average order value (AOV) = revenue for a period / number of orders in the same period. Exclude canceled and refunded orders, and track it by channel: customers from email and from ads can differ a lot.
Before you change anything, look at the distribution of orders by amount. If most orders land just below some round number, say €40–49, that is a ready-made spot for a free shipping threshold.
1. Free shipping threshold
The easiest method for customers to understand. Set the threshold slightly above your current AOV; as a rule of thumb, 15–30% higher. Show progress in the cart: "add €8 more for free shipping". Check your margin: free shipping comes out of it, and the threshold has to pay for itself.
2. Bundles and sets
A ready-made set saves the customer from choosing. Coffee plus filters, running shoes plus socks, shampoo plus conditioner. The set costs a bit less than the items bought separately, but more than any single item.
3. "Frequently bought together" on product pages
A related products block works if the selection is hand-picked or based on real joint purchases. Automatic "similar products" from the same category more often distract: the customer starts comparing instead of buying.
4. Cart suggestions
Cheap companion products fit in the cart: batteries, a case, a care product. The price of the add-on should be small relative to the order, or the customer will reconsider.
5. Upsell: a better version
Offer a higher model or a larger size where the price difference makes sense. "500 g jar for €14 or 1 kg for €24" is an easy decision for someone who buys this product regularly anyway.
6. Quantity discounts
"Second pair of socks half price" or "3 for 2" suits consumables. Expensive items usually don't need this mechanic.
7. Gift with purchase over a set amount
A gift for orders over a certain amount is similar to a shipping threshold but feels like a bonus. The gift can be a sample, an accessory or a partner's promo code. The last option costs you nothing: the partner pays for the gift.
8. Post-purchase upsell
An offer on the thank-you page to add a product to an order that is already paid. It doesn't interfere with the main purchase because the order is already placed. We cover the mechanics in the article on post-purchase upsells.
9. A smooth checkout
A long order form and a surprise shipping cost on the last step reduce not only the number of orders but also their size: customers remove items to stay within budget. Show the full cost up front.
10. Working with repeat orders
Regular customers are more willing to try new products. Restock reminders, personal picks and early access to new arrivals raise the value of the second and third order.
Comparing the methods
| Method | Difficulty | Affects margin | Where on the site |
|---|---|---|---|
| Free shipping threshold | Low | Yes | Header, cart |
| Bundles | Medium | Yes | Catalog, product page |
| Companion products | Medium | No | Product page, cart |
| Upsell | Low | No | Product page |
| Gift over a set amount | Low | Depends on the gift | Cart |
| Post-purchase upsell | Medium | No | Thank-you page |
Mistakes that eat the effect
- A shipping threshold above what customers are willing to pay: orders simply don't get placed.
- Discounts on everything: order value rises while profit per order falls.
- Too many suggestions: the cart turns into a catalog.
- Judging by revenue without counting returns: upsells with a high return rate don't pay off.
How to check that a method worked
AOV swings on its own because of seasons, ads and sales. So don't compare "the month before" with "the month after"; compare similar periods and, where possible, roll out changes to part of your traffic. For example, you can switch on a free shipping threshold for just one shipping country first.
Track three numbers at once: AOV, order conversion rate and profit per visitor. If AOV rose but conversion fell, the overall result may be negative. Decide by profit per visitor.
What suits different niches
| Niche | What usually works |
|---|---|
| Cosmetics | Sets, samples, shipping threshold |
| Coffee and tea | Bigger sizes, refill subscription, brewing accessories |
| Shoes | Shoe care, insoles, socks in the cart |
| Electronics | Cases, screen protection, cables, extended warranty |
| Home and kitchen | Bundles, consumables for appliances |
Where to start in practice
- Export three months of orders and plot the distribution by amount.
- Find the boundary where many orders pile up below it, and check whether your margin covers free shipping above that amount.
- Pick your three most popular products and come up with one bundle and one companion product for each.
- Add one suggestions block to the cart, with no more than three products in it.
- After a month, compare AOV, conversion and profit per visitor with the same period before the changes.
When average order value isn't the main goal
If AOV is already high but customers buy only once, it pays more to work on repeat sales and on income from every order. For example, partner gifts on the thank-you page bring in money from every order without changing its amount. With ThanklyClub, this is how stores earn when they have nothing left to upsell: the store gets 60% of the partner's payout.
FAQ
What is a good average order value for an online store?
There is no universal norm: it depends on niche, prices and country. Compare your AOV with your own past periods and your margin, not with other people's numbers.
How do I calculate a free shipping threshold?
Look at the distribution of orders by amount and your current AOV. As a rule of thumb, set the threshold 15–30% above AOV, provided the extra margin covers shipping costs.
What is the difference between an upsell and a cross-sell?
An upsell offers a pricier version of the same product; a cross-sell offers a different product that goes with the main one.
Does a post-purchase upsell work?
It does if the offer is cheap, related to the order and added in one click without re-entering a card.
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