Appstle | How Free Shipping Upsells Can Increase Your Average Order Value

How Free Shipping Upsells Can Increase Your Average Order Value

Appstle | How Free Shipping Upsells Can Increase Your Average Order Value

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How Free Shipping Upsells Can Increase Your Average Order Value

Welcome to the exciting world of modern eCommerce! If you’re a business owner looking to amp up your growth and profitability, boosting average order value (AOV) is where it’s at. Why? 

A higher AOV means more moolah in your pocket and happier customers sticking around for the long haul. But let’s face it, increasing AOV can be a challenge in this fast-paced, ever-evolving online marketplace.

Fear not, fellow entrepreneur! We’ve got a game-changing tactic that will skyrocket your AOV: free shipping upsells. We’re talking about offering that irresistible combo of free shipping along with extra goodies that will make your customers go “Wow!”

So, buckle up and get ready to dive into the secrets of increasing your AOV. Get ready to unlock the power of free shipping upsells and take your eCommerce game to a new level!

What is Average Order Value in eCommerce

Average Order Value (AOV) is calculated by dividing the total revenue generated from all transactions by the total number of orders. It provides insights into customers spending behavior and helps businesses understand the average amount customers spend per transaction. 

By analyzing AOV data, companies can identify opportunities to increase sales and profitability. 

The best part? You can increase your AOV without constantly seeking new customers. It’s like having a secret weapon to maximize your revenue!

Challenges in Increasing AOV

Increasing AOV can be challenging in a competitive eCommerce landscape. Key challenges include:

  • Customer price sensitivity: As shoppers compare prices, it is crucial to balance pricing strategies.
  • Product Value Perception: Customers must see the worth of purchasing extra or pricier items.
  • Customer Experience: A streamlined checkout process encourages larger orders.
  • Shipping Costs: High fees deter customers from spending more.

Overcoming these challenges requires the right strategy. Stay tuned for proven AOV-boosting tactics in the next section.

How to Increase Average Order Value in eCommerce and Shopify

If you’re wondering how to increase AOV in your eCommerce store, there are several proven strategies, and each holds its unique benefits:

  1. Product Bundling: Offers customers value by grouping related items for a slightly lower price than purchasing individually.
  2. Cross-Selling: Encourages customers to purchase complementary items, enhancing their overall experience.
  3. Upselling: Promotes a slightly more expensive alternative to the item the customer is considering.
  4. Volume Discounts: Provides a discount when customers purchase in large quantities, incentivizing bulk buying.
  5. Loyalty Programs: Rewards repeat customers, encouraging them to spend more to reach certain reward thresholds.

These strategies can be implemented on platforms like Shopify to maximize your eCommerce success.

The Power of Free Shipping

Among these strategies, free shipping is often the most powerful tool in your AOV arsenal. 

Why? 

Because it directly addresses one of the key challenges in boosting AOV for eCommerce businesses – high shipping costs. 

Free shipping can be a game-changer, as it eliminates a major deterrent for customers making larger orders. When applied as a threshold offer, where free shipping is provided on orders over a certain amount, it not only encourages customers to add more to their cart but also provides them an additional incentive to do so. 

By adding the free shipping option, you create a win-win situation. Your customers save on shipping costs, and you benefit from higher per-transaction revenue!

Did you know that 80% of consumers expect free shipping when ordering a certain dollar amount of products, and 66% expect free shipping for all online orders? 

This makes offering free shipping even more crucial for optimizing your AOV strategy. By providing this incentive, you attract more customers and increase the likelihood of them making larger orders, ultimately boosting your average order value.

Fun fact: 78% of consumers are willing to buy more to qualify for free shipping!

How to Announce Free Shipping

Effective communication of your free shipping offer is the key to enticing customers to increase their cart value. Here are some stellar ways to announce your free shipping incentive:

1. Utilize Website Badges

Badges are eye-catching and quickly communicate important information. Placing a noticeable badge on your website, especially near product prices, can be an effective way to inform customers about the free shipping offer. A brightly colored “Free Shipping” badge can immediately capture attention and spur customers to shop more.

Appstle | How Free Shipping Upsells Can Increase Your Average Order Value

2. Display Banners

Banners serve as a constant reminder of your free shipping offer as customers navigate through your website. Use bold and appealing banners at the top or bottom of your webpage, or even as a pop-up. Ensuring that the free shipping offer is one of the first things your customers see can motivate them to increase their cart value.

Appstle | How Free Shipping Upsells Can Increase Your Average Order Value

Implementing these strategies might seem challenging, but it doesn’t have to be!

Getting started with free shipping upsell is easy! 

By now, we all understand the importance of providing free shipping. But let’s face it, achieving simplicity and efficiency in implementing this perk can be quite a challenge for some brands. 

They often find themselves grappling with the intricacies of badge placements that truly communicate the value of free shipping to customers. Consequently, they end up investing a significant amount of time and effort into perfecting this aspect of their business.

But here’s the good news: announcing free shipping on your Shopify store doesn’t have to be a complex task that drains your resources. With the right tools, setting up free shipping can be a simple and hassle-free process. While there are numerous apps available to help you, we’re here to simplify your decision-making process by sharing our personal favorite.

Introducing the Essential Free Shipping Upsell App for Shopify – a great tool that effortlessly boosts the average order value. This app offers a variety of features, including enticing free shipping progress bars, upsell suggestions, and cross-sell functionality. 

Increase AOV on Shopify by adding product upsells to your free shipping progress bar, driving profits higher. With its comprehensive and customizable features, it is perfect for easy and effective eCommerce growth. bye to the struggle of increasing AOV and hello to boosted sales!

Conclusion

Among many strategies to increase the average order value, free shipping stands out as a game-changer. It directly addresses the challenge of high shipping costs, often leading to cart abandonment. 

Free shipping offers eliminate this deterrent and encourage customers to make larger orders. By effectively announcing your free shipping offer through website badges, banners, and clear communication, you can entice customers to increase their cart value and take advantage of the incentive.

So, get ready to unlock the power of free shipping upsells, captivate your customers, and take your eCommerce game to a whole new level. Maximize your Average Order Value and watch your business thrive like never before!

About the author

Appstle | How Free Shipping Upsells Can Increase Your Average Order Value

Guest Author

This is a guest post submitted by our Shopify app partner.

If you are looking to understand more about Appstle Inc’s products and solutions, you can get in touch with us. Our 24x7x365 available experts will be happy to assist you further.

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