You’re generating traffic. You’re converting orders.

But revenue still isn’t where it should be.

In many cases, the issue isn’t traffic or even conversion rate, it’s Average Order Value (AOV).

Increasing AOV is one of the fastest and most cost-effective ways to grow ecommerce revenue without increasing ad spend. When executed properly, it improves profitability, strengthens margins and enhances the customer experience.

Below, we break down practical, data-led strategies to increase average order value, and explain how to implement them strategically.

What Is Average Order Value (AOV)?

Average Order Value (AOV) is the average amount a customer spends each time they place an order on your ecommerce website.

It’s calculated by dividing total revenue by the total number of orders within a given period.

For example:

If your store generates £50,000 from 1,000 orders, your AOV is £50.

While simple in formula, AOV has significant commercial impact. Even a modest uplift of 10–15% can dramatically improve revenue without increasing acquisition costs.

Why Increasing AOV Matters for Ecommerce Growth

Driving more traffic requires a budget. Increasing AOV leverages the traffic you already have.

A higher average order value:

  • Improves return on ad spend (ROAS)
  • Increases customer lifetime value (CLV)
  • Protects margins against rising acquisition costs
  • Reduces dependency on continuous traffic growth

For ecommerce brands operating in competitive paid media environments, AOV optimisation is often where the most profitable gains are found.

Introduce Strategic Product Bundling

Why Bundling Works

Product bundling increases perceived value while simplifying decision-making.

Rather than encouraging customers to purchase a single product, you present them with a curated combination of complementary items. This removes friction and reduces the cognitive load of deciding what else they might need.

Behaviourally, bundling leverages:

  • Convenience bias
  • Perceived savings
  • Anchoring (the bundle price appears stronger value against individual item pricing)

How to Implement Bundling Effectively

Use transactional data to identify products frequently purchased together. Platforms such as GA4 and ecommerce tracking tools can reveal natural purchase patterns.

Examples include:

  • Clothing “complete looks”
  • Electronics with essential accessories
  • Home décor collections

Bundles should feel curated, not forced. When done correctly, they increase AOV while improving customer satisfaction.

Optimise Cross-Selling and Upselling Throughout the Journey

Cross-selling and upselling should not be limited to the product page.

Strategically placed recommendations across the customer journey, such as on the product, basket and checkout pages, reinforce purchasing intent and increase basket size.

Suggest complementary products that enhance the original purchase, or present a premium or higher-value alternative to the original product.

For fashion and lifestyle brands, “Shop the Look” functionality is particularly powerful, as it removes styling decisions entirely.

Use Tiered Pricing to Guide Spending Behaviour

Tiered pricing leverages behavioural economics by subtly guiding customers towards higher-value purchases.

Examples include:

  • Buy 2, get 10% off
  • Buy 3, get 20% off
  • Spend £75, receive a free gift

This taps into the principle of incremental reward, customers justify adding additional items because the marginal gain appears worthwhile.

Tiered pricing can also be applied to:

  • Subscription models
  • Product packages
  • Service add-ons

When structured properly, the middle or upper tier becomes the most attractive option, increasing AOV without aggressive discounting.

Implement Time-Sensitive Offers Strategically

Urgency can significantly influence purchasing behaviour when used responsibly.

Time-sensitive offers work because they trigger:

  • Fear of missing out (FOMO)
  • Loss aversion
  • Decision acceleration

Examples include:

  • “20% off ends in 2 hours”
  • “Free gift available today only”
  • “Limited stock remaining”

However, urgency should be genuine. Overuse can reduce credibility and erode brand trust.

Used strategically during campaigns or seasonal promotions, it can temporarily lift both conversion rate and average order value.

Introduce Free Delivery Thresholds

Free delivery thresholds are one of the most effective AOV drivers in ecommerce.

Messaging such as:

“Spend £6.42 more to qualify for free delivery”

creates a clear and achievable spending target.

This works because customers psychologically compare the cost of delivery against the perceived value of adding another product. Often, adding an item feels more rewarding than paying for shipping.

For best results:

  • Display the threshold clearly in the basket
  • Reinforce it at checkout
  • Use dynamic progress messaging

Even small threshold increases can produce significant revenue uplift at scale.

Develop Loyalty and Reward Programmes

Loyalty programmes encourage customers to spend more in exchange for future value.

By rewarding spend with points, tier status or exclusive offers, you shift purchasing decisions from transactional to relational.

Benefits include:

  • Higher repeat purchase rates
  • Increased lifetime value
  • Stronger brand affinity

Introducing spend thresholds for rewards can further increase AOV by encouraging customers to “reach the next level.”

When integrated effectively, loyalty schemes support both short-term revenue and long-term retention.

Increasing AOV Requires Data, Not Guesswork

While these strategies are proven, implementation without testing can damage margins or overwhelm users.

Every ecommerce store is different. What increases AOV for one brand may reduce conversion rate for another.

Effective AOV optimisation requires:

  • Behavioural analysis
  • Heatmap and session tracking
  • Funnel drop-off analysis
  • A/B testing
  • Margin modelling

This is where structured Conversion Rate Optimisation (CRO) becomes critical.

How Pod Digital Increases Ecommerce Revenue Through CRO

Our Conversion Rate Optimisation service combines:

  • GA4 behavioural analysis
  • User journey mapping
  • Structured experimentation frameworks
  • Margin-aware testing
  • Paid traffic alignment

We identify where revenue is being left on the table and implement controlled experiments to increase average order value without harming conversion rate or customer experience.

Because sustainable ecommerce growth isn’t just about driving more traffic.

It’s about extracting more value from the traffic you already have.

Ready to Turn More Orders Into More Revenue?

If your ecommerce store is generating sales but not delivering the margins you expect, Average Order Value may be the missing lever.

Let’s unlock the revenue already sitting within your customer journey.

Get in touch with Pod Digital to discuss how our CRO strategies can increase AOV, improve profitability and future-proof your ecommerce growth.