Seller Union

6 Ways to improve Average Order Value

โ€”

by

Kika Angelic
in ,

As you know, Average Order Value (AOV) measures the amount of money every customer spends per transaction on your eCommerce store.

One of the most important KPIs for any seller is to increase AOV. It is the most effective strategy to manage client acquisition costs while also reducing payback time and increasing ROI (Return On Investment).

This implies you can increase your revenues or spend more money on product development and marketing.

๐ˆ๐ง๐œ๐ซ๐ž๐š๐ฌ๐ข๐ง๐  ๐€๐Ž๐• ๐ข๐ฌ ๐จ๐ง๐ž ๐จ๐Ÿ ๐ญ๐ก๐ž ๐›๐ž๐ฌ๐ญ ๐ฐ๐š๐ฒ๐ฌ ๐ญ๐จ ๐›๐จ๐จ๐ฌ๐ญ ๐ฒ๐จ๐ฎ๐ซ๐‘๐ž๐ญ๐ฎ๐ซ๐ง ๐จ๐ง ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ฆ๐ž๐ง๐ญ (๐‘๐Ž๐ˆ).

๐Ÿ”ฐ ๐Ÿ” ๐ฐ๐š๐ฒ๐ฌ ๐š๐ซ๐ž:

๐Ÿ- Optimize your listing

๐Ÿ- Provide your customers with incentives like Promotions or Discounts

๐Ÿ‘- Add Visual Elements in images and listing

๐Ÿ’- Present your product as an IDEAL GIFT

๐Ÿ“- Use Cross-selling and upselling tactics

๐Ÿ”- Build a Strong Social Proof for your product listing

๐Ÿ”ฐ ๐‚๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž ๐€๐ฏ๐ž๐ซ๐š๐ ๐ž ๐Ž๐ซ๐๐ž๐ซ ๐•๐š๐ฅ๐ฎ๐ž

๐Ÿ”ธAverage Order Value (AOV) = Total Revenue รท Number of Orders

Letโ€™s assume that your online store has generated a revenue of $1000 in the last month, and you have received 100 orders, then your AOV will be:

Average Order Value = 1000 รท 100

Average Order Value = 10

One significant aspect to note is that AOV is determined with the help of sales per order and not sales per customer.

๐Ÿ”ฐ ๐๐จ๐ญ๐ž:

๐Ÿ”ธAOV doesnโ€™t factor into your profit margins or gross profit but it is still a vital metric for decision making. 

๐Ÿ”ธAOV is directly co-related with keyword Ranking.

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) โ€“ feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance โ€“ Friendly Advice โ€“ Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please donโ€™t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

Comments

2 responses to “6 Ways to improve Average Order Value”

  1. Joy Avatar
    Joy

    I’m not sure exactly why but this site is loading extremely slow for me.
    Is anyone else having this issue or is it a problem on my
    end? I’ll check back later on and see if the problem still exists.

  2. Hershel Avatar
    Hershel

    Awesome! Its genuinely remarkable article, I have got much clear idea concerning from this post.

Leave a Reply