Best Ways to Increase Average Order Value in Magento 2

September 1, 2020

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Best Ways to Increase Average Order Value in Magento 2

Magento is one of the top eCommerce platforms in the world in the same vein as other popular platforms such as WooCommerce and Shopify. As of 2019, there were already more than 250,000 eCommerce websites using Magento. There are many reasons why this platform is becoming popular with its mobile-friendliness, the versatility of its content management capabilities, custom integrations, and SEO friendliness being some significant reasons. So, it’s an ideal platform for those looking to go into eCommerce.

However, none of these features make sense if you are not able to sell on this platform. Not just selling your products, but also boosting your sales to make more revenue. So, you must increase your average order value if you are going to improve your online revenue.

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3 Most Effective Ways to Rise Average Order Value

So, here are some of the best ways from essay writing service to increase your average order value in Magento 2.

1. Develop Product Pages

The product pages are one of the first things that you have to pay attention to. This is a necessary tool for engaging your customers and making sure that they make the purchase. First of all, you have to ensure that you are converting your leads into customers. So, the task that you have at hand is to make sure that you are developing very engaging landing pages.

Magento 2, by default, has good functionality to help you build up your landing pages. However, it will help if you do a lot of work to input your product options as you have to do this manually. To help you streamline this process to engage more of your customers, an extension that you can use is the Advanced Product Options Suite. With this module, you can create different templates that you can also apply to other groups of products simultaneously. This extension also allows you to establish templates that you can use for various options of a product.

The settings of the Advanced Product Options works well for all types of goods. If we take the instance of a gadget, it would normally have different models, colors, internal storage, RAM, additional accessories, etc. You can increase your margins and generate more revenue by providing deals with product bundles. For example, iPhone + earpods. Instead of buying both individually, the customers will be encouraged to take the deal and buy both at once. This means that they have to spend more, but it will allow you to make more sales and increase your revenue in Magento 2.

2. Offer Free Shipping Options

Free shipping has always been an effective way to make people buy a product. It is also one of the most popular methods that eCommerce owners use to increase their average order value. It always attracts customers. This is because customers always try to save cost on every deal and product that they buy. Free shipping will save them some bucks as they will not have to pay for shipping charges at all. The extra cost of shipping their product from the online store to their physical locations is one of the commonest reasons people tend to stay away from buying from online stores.

offer free shipping options to rise average order value in Magento 2 stores

According to Invesp, 93% of people are encouraged to purchase a product from an online store if it will not cost them extra charges to ship the product. Also, up to 58% of online buyers add more products to the cart to ensure they are qualified for free shipping.

Introducing free shipping to your online store is a plus for you. To use this effectively, you have to, first of all, find out your average order value, then add 20% to it. For instance, if you have an average order value of $150, 20% of that is $30. This means that you will add $30 to the $150 average order value to make $180. Make this sum your threshold for offering free shipping. This will likely force your customers to try and reach the $180 so that they can qualify for the free shipping and avoid the extra cost. This will help to increase your average order value.

Table Rate Shipping Multiple FLat Rate Shipping

Shipping Per Product Shipping Restriction

3. Provide Gift Cards

As of 2018, the global gift cards market had a value of $337600 million, and according to research by Persistent Market, it is estimated to reach $505900 million after 2025. This means that it will grow at a 6% CAGR between 2019 and 2025. So, you have to start thinking about the future purchases that your customers will make. And the perfect way for you to do this is to introduce gift cards to them. This will help to drive you extra revenue as it motivates your customers to make purchases repeatedly.

provide gift cards to increase average order value in Magento 2

Your customers will also help promote your store when they purchase your gift cards for their friends, families, and relatives. This increases your brand awareness and allows new customers to find your online store. According to research in eCommerce, almost 60% of online customers say that they don’t mind getting a gift card. This means that many people would find the card useful when they are gifted. Guess what? More than 60% of people who receive gift cards spend almost 40% more than the card’s value.

Gift cards also act as additional adverts for your online store and help to increase the average order value because, at the end of the day, the buyers tend to spend greater than the value of the gift card.

You can also use Magento 2 gift card extension to be effective with this. With this extension, you have access to different pricing schemes and three different types of gift cards. The three gift card types are email, mail, and print-out. There are also three types of prices; fixed price, custom values, and redefined price set.

Conclusion

As an eCommerce store, you have to make sure that you take all the chances that you get to improve and upgrade your store. Improving your AOV will help to enhance your store’s development. Here are some of the best ways to improve your average order value in Magento 2.

Author Bio

Charlie Svensson is a fast, engaging freelance writer. He is skilled in content writing and blogging. His posts’ favorite topics are education, social media, marketing, SEO, motivation, blogging, and self-growth. Excellent adaptability of skills to reach a diverse audience.