All commercial players on the net have as their primary goal to make money. End of discussion.
Increasing the average value of the shopping cart allows you to capture more value from each transaction on the site, so the business becomes more profitable.
Increasing what we call AOV (Average Order Value) also makes it easier to defend the money you spend on generating traffic to the web pages.
So, does the average value of the cart increase in line with the general e-commerce?
No. In fact, the average value of shopping carts went down by 7.1% in 2017, according to Klarna. They base their figures on 4,500 online stores that use their payment solutions in Norway, and the trend unfortunately looks the same for 2018.
Now, of course, the average value will vary greatly depending on the industry and type of products. It’s a little like asking “how long is a rope.” E24 wrote, in connection with the sales records during last year’s Black Friday, that an regular average Norwegian shopping cart is around NOK 850, while during this day it was NOK 1250 in 2017.
At the same time as the size of the shopping cart goes down, the number of completed purchases online is increasing, and that is we are pleased.
As we have previously written, we expect a new record of turnover this year when it hits Black Friday in late November. This despite the fact that Statistics Norway yesterday stated that the retail companies’ turnover volume declined by 0.7% from August to September this year.
So, what can you do, if you already have decent traffic and good conversion, to increase the average shopping basket’s value?
Here are our 5 top tips for increasing AOV:
- Offer a gift card. “Buy for more than 500 and get a 100-credit gift card the next time you visit us”. This way, you also encourage a buying customer to make repurchases.
- Give a combination discount on the purchase of several different products.
- Automatically give a discount on first-time purchases over a given amount. Certainly in exchange for signing a newsletter or other valuable registration.
- Cross-selling or up-selling naturally increases the value of the average shopping cart when properly executed. If you have a system that provides relevant recommendations based on what the customer already has in the shopping cart, this can give a correct boost. “Congratulations on the new suit – can we recommend a matching shirt?”
- Let them know that they are close to reaching the limit making them eligible for free shipping. This is the best trick up our sleeve, and something many of our e-commerce partners use with great success. If you have items worth NOK 459 in the cart, and the limit for free shipping is NOK 500 kroner, it is easy to add a little more to the shopping cart. “You are now only NOK 41 away from free shipping!” It works every time.
At Recheckit, we work with many of the smartest heads in Scandinavian e-commerce and we can offer the exact technical solution that allows you to trigger relevant pop-ups in different parts of the purchase journey, as mentioned above – at the right time. We call them onsites. These can give relevant recommendations based on what is already in the shopping cart, or calculate how much remains to be added before they are eligible for free shipping.
If you aim to increase the average order value, we will gladly show you some effective solutions and cases from customers who have succeeded with exactly this. We would love it if you got in touch – anytime. And thank you for reading.