Many marketers and ecommerce managers focus on new customer acquisition as the end-all-be-all of revenue growth, but how much the average shopper spends per transaction matters just as much as the number of new clients you attract.
Revenue growth accelerates when brands can reduce acquisition spend while maintaining or increasing overall revenue. This happens when existing customers spend more per transaction and return more frequently, effectively eliminating acquisition costs for repeat purchases while driving higher customer lifetime value.
Average order value (AOV) is a critical metric that tells you how much money customers typically spend in each order. You can calculate it by dividing your total revenue by the number of orders placed in a set time period.
Your AOV has a significant impact on your business’s profitability and growth trajectory. A higher AOV makes individual customers more valuable, improves unit economics, and maximizes the return on every acquisition dollar spent. When combined with strong retention strategies, increased AOV creates a compounding effect that drives exponential revenue growth.
The most successful ecommerce brands focus on both increasing AOV and improving retention, getting existing customers to spend more during repeat purchases while attracting new customers who generate higher value from their first transaction.
In this post, we’re going to focus on clear strategies that can help you consistently improve your Shopify AOV with customer-centric tactics that can elevate revenue, retention rates, and the customer experience all at once.
1. Implement a loyalty program
Loyalty programs are one of the most comprehensive solutions when you want to raise your average order value.
Unlike quick fixes that might boost sales temporarily, a well-designed loyalty program can provide long-term benefits in increasing your AOV over time—even during economic recessions.
Our 2025 data found that 77% of customers will prioritize brands they’ve already shopped with during times of economic uncertainty, and 64% will prioritize brands that have loyalty programs during economic uncertainty. This can make loyalty programs a valuable contributor when you want to increase AOV.
Customers love earning points, unlocking rewards, and feeling like they’re part of an exclusive club. When structured correctly, loyalty programs naturally encourage customers to spend more to reach the next tier or earn their next reward.
Points-based programs are most common for Shopify stores, allowing customers to earn points for every dollar spent. Those points can then be redeemed for rewards.
Some brands, like Farm Hounds, also have tiered program components. Customers can earn access to higher-tiered rewards based on minimum annual spend or points earned, which can further incentivize repeat purchases.
For best results, your program should:
- Be easy to understand. Make it easy for users to do complete tasks, ranging from enrollment to redeeming rewards. It should be straightforward, or users won’t bother.
- Feel attainable. If you sell $10 products and customers have to spend $3,000 a year to see any benefits, that likely won’t feel realistic or attainable. Customers should be motivated to redeem rewards if you want them to spend more.
- Be personalized. Personalized loyalty programs – from the logged-in loyalty page view to segmented comms and exclusive member perks – can increase engagement (and spend!).
- Align with customer preferences. What rewards do customers want most? A fashion brand might offer early access to new collections or sales, while a coffee company could provide a free drink after a certain number of purchases.
- Leverage program loyalty platforms. You can use dedicated loyalty program software to offer well-executed and customizable experiences your customers will love.
2. Cross-sell during the checkout process
Cross-selling is the practice of recommending complementary or related products to customers based on past purchases. Combined with loyalty programs that incentivize higher AOV, it can be a highly effective way to encourage users to add more items to their cart. One study even found that cross-sells had an average upsell value of around 14.2% per cart.
The beauty of checkout cross-selling lies in timing — customers have already decided to purchase, so they’re in a buying mindset. Smart suggestions can genuinely enhance their purchase experience.
If customers are purchasing seeds from an online plant shop, you could recommend they also get your seed starter kit, fertilizer, or a grow light. Since you know that these customers are definitely buying seeds, there’s a good chance that they’ll need at least one of your recommendations.
Some brands will show cross-sell recommendations on product pages. Others, like Reformation, will highlight cross-sell recommendations in the cart, based on the item the customer has added. A few, well-chosen options prevent customers from becoming overwhelmed.
You can use cross-selling throughout the customer’s journey:
- When customers are viewing their cart or during checkout, show them how many points they’ll earn from a purchase. This can encourage them to add more items to their cart and may prevent cart abandonment.
- When customers are browsing their loyalty dashboard or receiving personalized communications, show them how close they are to their next tier or reward. This visibility throughout the buying process encourages them to spend a little more to reach their goal.
- When customers are exploring product pages or receiving recommendations, incentivize AI-driven product recommendations with bonus points by integrating your loyalty program with Limespot.
When cross-selling, however, there are important considerations. Keep suggestions relevant and limited — overwhelming customers with too many options can lead to decision paralysis or cart abandonment.
You should also consider the price point of your cross-sell items. They should be significantly cheaper than the main purchase so they feel like easy additions rather than major decisions.
3. Ace your post-purchase communications
Post-purchase upselling happens after customers have completed their initial transaction or have at least initiated the checkout process. This might seem counterintuitive — why not suggest everything upfront? But there’s solid psychology behind this approach.
Studies show that post-purchase upselling communications can result in a 5.6% uplift in average order value. The key is timing and relevance — strike while the buying momentum is still there, but make sure your suggestions genuinely add value to their original purchase.
If they bought a hairdryer, why not recommend adding on a hair straightener at a discounted price? Or, you could send an email offering 20% off their next purchase. If they were on the fence about an extra item, that may be the push they need to place another order.
Etsy, for example, sends product recommendations similar to a customer’s purchase in their order confirmation email. The goal is to drive the customer back to the platform for another purchase. While it’s technically a separate purchase, it increases the value of a single purchase and thus can be considered to help increase your AOV.
After purchase, you may leverage your loyalty program to incentivize future purchases. Strategies include:
- Show how many points were earned on the customer’s post-purchase order confirmation page.
- On the order confirmation page, list the impact of the purchase on the member’s tier status or their available rewards.
- Send post-purchase emails through LoyaltyLion to show guest shoppers (aka non-members) how many points they could have redeemed if they’d joined— and give them the option to enroll now.
- Maintain personalized communications with members-only promotions that bring users back to spend more to reach certain goals or avoid missing out on those hard-earned rewards.
The risk with post-purchase upsells is seeming money-hungry right after someone has just spent with you. Keep the focus on enhancing their experience rather than extracting more cash.
4. Set a minimum order value for free shipping
Living in the world of Amazon Prime has conditioned many customers to want free shipping, even if it means upping their overall cart value. Our study found that 85% of consumers consider free shipping an important loyalty program benefit.
Loyalty programs can help enable this. You may offer free shipping as a perk for higher tier members, for example, to encourage shoppers to spend more per order to more quickly reach those high tier advantages.
Free shipping may also be a redeemable reward that encourages shoppers to spend more and engage in your loyalty program with non-purchase options, like connecting on social media. They can redeem enough points to then earn their free shipping reward.
Customers may only have $20 of product in their cart, but will go back and add more if it means they can meet the $40 threshold to avoid spending $6.99 on shipping. For best results, make sure that customers see the free shipping threshold throughout their purchasing journey, including:
- Listing it prominently in the header of your site.
- Adding it as a pop-up when users add items to their cart.
- When users view their cart or initiate the checkout process.
My Girlfriend’s Quilt Shoppe lists the free shipping offer on the top of their site. You can also use a progress bar that shows customers how close they are to free shipping when they add items to their cart. This can incentivize customers to keep shopping.
For best results, you want to make sure that the minimum spend threshold is reasonable. If your average order value is around $50 and shipping costs $8, then offering free shipping at $65 could work.
The difference between $58 and $65 is “close enough” that customers may feel they’re getting good value.
However, if your AOV is $50 and you try to set a minimum threshold of $100, customers will be less likely to bite.
The main downside to this strategy is that some customers may choose to abandon their carts instead of meeting the minimum, especially with so many customers expecting or heavily preferring free shipping.
5. Offer free gifts at order value thresholds
Another great way to increase your average order value is to offer free gifts instead of (or in addition to) free shipping when users spend at or over a certain threshold.
This tactic works because it reframes additional spending as an opportunity rather than an expense. Instead of thinking “I’m spending more money,” customers think “I’m getting something free.” The psychological shift is powerful.
Setting the right threshold is crucial. It should be meaningfully higher than your current AOV but still feel attainable. If your AOV is $60, setting the threshold at $80-90 encourages customers to add one more item. Set it too high, and it becomes irrelevant; too low, and you’re giving away gifts to customers who would have spent that amount anyway.
The gift itself should be something customers want, but it shouldn’t be so valuable that it hurts your margins. Sample sizes work well for beauty brands, branded accessories for apparel companies, or digital bonuses for service businesses.
Inkey, for example, recently offered free gifts like a “full-sized bestseller” for loyalty members’ first order of the week and a free INKEY bag if they spent over $60. This is a great example of offering something of value that customers want to incentivize additional purchasing, increasing AOV.
Loyalty programs enhance this by allowing members to redeem points for free products. Brands often offer sample sizes (to protect margins), old stock (to manage inventory), or new flavors (to gauge customer opinions) as point-redeemable rewards.
The main risk is that some customers might return items after receiving their gift, effectively getting free products. Clear terms and conditions help manage this. Pending points is an ideal solution, allowing brands to wait to release points until a purchase is finalized to prevent abuse of the system.
6. Offer strategic discounts
Everyone loves feeling like they got a great deal, even if it means that we’re actually spending more to save. And there are plenty of ways you can increase order value by offering a great deal:
- Create substantial discounts that are only available for members when they spend a certain amount on their order, like 15% off $150.
- Promote personalized and segmented members-only offers to increase the average cart value.
- Feature discounts on purchases when customers make certain purchases, such as “Earn double points when you purchase from our new line of beauty products.”
Volume and threshold-based discounts work particularly well for increasing AOV— especially for loyalty members. Discounts may be reserved for loyalty-only members, and may either allow customers to redeem points for exclusive discounts.
Truly, for example, offers 10% off one-time orders and 20% off subscription orders for loyalty members. It’s an always-available perk that can encourage customers to spend more if they feel like they’re saving.
This strategy can be highly effective. One case study from LevelingUp found that a company was able to increase their AOV by 10% instantly with strategic discounts alone.
As long as you’re not discounting so much that it’s hurting your overall margins and devouring your profit, it’s a good strategy to test.
7. Create product bundles
Product bundling groups related items together at a slightly reduced price compared to buying them individually. It’s a win-win: Customers get better value, they’re incentivized to earn more to redeem points, and you achieve higher order values.
Effective bundles feel natural and valuable. A “Complete Skincare Routine” bundle with cleanser, serum, and moisturizer makes sense. A random collection of unrelated products doesn’t. Even grouping multiple similar products, like Waterdrop does in the example below, can increase AOV effectively.
Loyalty programs can supercharge bundles by letting members use points to unlock bundle discounts or access exclusive bundles, driving them to spend more to earn the points needed for these perks.
There are several bundle approaches to consider:
- Complementary bundling groups items that work together, like a camera with a memory card and case. Offer double points on these bundles to incentivize the higher purchase value.
- Cross-category bundling might combine a main product with accessories from different sections. Make these exclusive to loyalty members to drive program enrollment.
Gift sets bundle multiple items into ready-to-give packages. Ideally, allow members to redeem points for gift bundles, encouraging them to accumulate more points through regular purchases.
Loyalty programs can supercharge bundles by offering bonus points on bundle purchases or making exclusive bundles available only to members or specific tiers.
Bundles also simplify the shopping experience for customers who want everything they need in one purchase. New customers especially appreciate this guidance rather than having to figure out what goes together. You can use this as a loyalty enrollment opportunity, offering first-time bundle buyers instant membership with bonus points to encourage future purchases.
The main challenge is inventory management—you need to ensure all bundle components stay in stock together. Consider creating “virtual” bundles that are assembled at fulfillment rather than pre-packaged.
8. Review pricing strategies
Sometimes the most straightforward way to increase AOV is simply charging more per product. However, this requires careful consideration of your market position and customer price sensitivity.
Start by analyzing your profit margins on each product. If you’re underpricing compared to competitors while offering superior value, you might have room to increase prices without losing customers.
Test different pricing levels gradually. A 5-10% increase is often barely noticeable to customers but can significantly impact your AOV. Monitor sales volume carefully during any price changes. You can consider testing price increases first with non-members and maintaining lower prices as a member benefit before making broader pricing decisions.
Consider psychological pricing principles. $19.99 feels substantially cheaper than $20, even though it’s only a penny difference. Ending prices in 9 or 5 often performs better than round numbers.
You might also explore premium versions of existing products. If you sell basic phone cases for $15, introducing premium versions with additional features for $25 gives customers an upsell option without forcing price increases on everyone.
Value-based pricing can be particularly effective. Instead of cost-plus pricing, consider what the product is worth to customers. A productivity app that saves businesses hours per week might be worth far more than your costs suggest.
Finally, make sure you account for current market trends. Increasing costs in an economic downturn or when tariffs are already increasing costs, for example, may not be the best choice. It may push your product out of customers’ price range if they’re already on a tight budget. Fortunately, loyalty program customers are often less price-sensitive than non-members, with revenue from redeeming program members being nearly 3x more stable during economic uncertainty.
9. Use post-purchase customer service wisely
Customer service interactions after a sale present unique opportunities to surface additional products, but they require a delicate touch. Customers contacting support aren’t necessarily in buying mode, and they might have questions or issues to resolve first.
The key is being genuinely helpful first, sales-focused second.
If someone contacts you about their recent order or account, first solve their problem completely. Then, if relevant, you might remind them of their current points balance, mention they’re close to a reward threshold, or highlight exclusive member benefits they haven’t used yet. For example, after resolving a shipping question, you could mention they have enough points for free shipping on their next order.
This is important: Timing matters enormously. Wait until you’ve fully resolved their initial concern before introducing any additional products. And when you do, frame suggestions around their specific situation rather than generic recommendations.
The goal is creating positive experiences that lead to future purchases rather than immediate upsells that might damage the relationship.
10. Other Shopify metrics to consider
AOV doesn’t exist in a bubble, and neither do the strategies or loyalty programs you use to increase it. Understanding related metrics gives you a clearer picture of your ecommerce performance and helps you make smarter decisions about which AOV strategies to pursue.
These Shopify metrics can help you measure customer loyalty:
- Customer Lifetime Value (CLV) is perhaps the most important companion metric to AOV. You can increase AOV through deep discounts, but if that hurts CLV by reducing repeat purchases, you’re trading short-term gains for long-term losses. Calculate CLV by multiplying average purchase value by purchase frequency and customer lifespan.
- Purchase Frequency tells you how often customers return to buy again. If your AOV strategies reduce purchase frequency, you might not be gaining much overall. The sweet spot is increasing both AOV and frequency.
- Customer Acquisition Cost (CAC) helps you understand the full profitability picture. Higher AOV is especially valuable when acquisition costs are high—it means each new customer becomes profitable faster.
- Conversion Rate can be affected by AOV tactics. Aggressive upselling might increase order values but reduce the percentage of visitors who actually buy. Monitor this carefully when implementing new strategies.
- Cart Abandonment Rate often increases when you add friction like minimum order requirements. Track this metric to ensure your AOV gains aren’t being offset by lost sales.
The goal isn’t to optimize any single metric in isolation, but to find the right balance that maximizes long-term profitability and customer satisfaction.
Building long-term value beyond quick wins
Increasing your Shopify AOV isn’t just about implementing a few tactics. It’s about creating an experience that naturally encourages customers to spend more while feeling great about their purchases.
The most successful AOV strategies focus on genuine value creation and relationship building. When customers feel they’re getting more value, higher spending feels natural rather than manipulated. This approach builds the kind of customer loyalty that drives sustainable business growth, making loyalty programs an ideal solution for businesses prioritizing revenue growth
As you’re implementing your loyalty program, start with one or two strategies that align best with your brand and customer base. Test them thoroughly, measuring their impact on both AOV and related metrics like CLV and customer satisfaction. Then, gradually expand your approach based on what works.
Want to learn more about tactics to retain your customers longer and increase CLV? Get our Ultimate Guide to Retention for Shopify Stores today.
