You’ve been working hard on driving traffic to your site and the orders are coming in—so far, the start of 2024 is looking sunny for your small beauty and skincare business!
Ready to grow your Shopify store as well as your revenue stream? Then it’s time to focus on improving your brand’s AOV, also known as an average order value.
In this article you’ll find plenty of actionable tips and marketing strategies as well as descriptions of our five favorite Shopify apps to help build and support your business.
What does the term average order value mean?
Average order value (AOV) is a term that refers to the average dollar amount spent per order. To figure out your brand’s AOV, simply divide your total revenue by the total number of orders made in the same timeframe.
For example, let's say you sold $1000 worth of product spread over 25 orders in a one-month timeframe. Using the equation described above, the average order value would be $40.
The benefits of knowing your brand’s AOV are myriad. Not only will it help you keep track of important financial metrics, average order value can also be used to develop marketing strategies, predict seasonal trends, structure pricing, and to overall increase sales.
1. Create bundles and limited-edition product sets
Long recognized for its ability to drive sales in the skincare industry, product bundling is beneficial in terms of improving both AOV and customer exposure to your product line.
The advantages of bundle pricing and limited-edition sets include the following:
- Better value perception of your product; a slightly reduced bundle price might lead the customer to buy more than they would have if they purchased each item at full price.
- An introduction to signature skincare products that can be purchased as a set for a discounted price—this is a great way to introduce customers to a full line of products.
- The opportunity to cross-sell and upsell high-performing products with new or under-selling products.
2. Optimize sales language for seasonal event
Whether the upcoming holiday is Halloween or Christmas Day, using seasonally descriptive language in your sales copy is a simple-yet-effective way to evoke a celebratory response from your customers.
Using seasonal vocabulary can increase average order value in several ways:
- It stresses the limited-time nature of the offer, creating a sense of urgency.
- It establishes a positive emotional connection, which the customer will identify with your skincare product.
- It makes your brand relevant and your products more likely to be purchased as gifts or for personal self-care use.
Another tip for increasing your skincare brand’s seasonal AOV? Consider offering a two-for-one or bundle deal and marketing it prior to the holidays. For best results, go with short-but-descriptive, holiday-centric titles such as Valentine’s Day Bundle, Easter Two-for-One Deal, or Mother’s Day Duo.
3. Provide free shipping thresholds
Providing a free shipping threshold for customers is an easily implementable Shopify feature that can have a measurable impact on average order value. An ever-attractive feature for customers both old and new, it’s estimated that up to 80% of shoppers now view free shipping as an expected service.
By offering free shipping or the potential for free shipping, you are encouraging potential customers to make purchases in several ways:
- It adds perceived value to the final purchase. This is due to the fact that free shipping is seen by the customer as a bonus or a discount—a perception that can lead to more money being spent than if shipping had cost money.
- It creates an incentive to make a larger order. Customers may spend additional money trying to meet the free shipping cut-off.
- It can give you an advantage over your competitors, particularly those that don’t offer free shipping or have a high minimum order.
- It gives you a promotional advantage—be sure to include information about your shipping policies in email marketing, social media, and with banners and pop-ups on your Shopify page.
4. Sell skincare accessories (and other ancillary products)
To boost the AOV of your sales, consider including items from Blanka’s line of customizable skincare and makeup accessories in addition to your other products.
Whether you’re offering Pro Eyelash eyelash curlers or beautiful jade rollers to help with skin detoxing, some of the gains to be had when selling high quality accessories include bundling and limited-edition opportunities, comprehensive treatment or application sets, as well as the opportunity to include branded merchandise.
5. The 5 best Shopify apps to increase AOV
From coding to writing product descriptions to gathering customer data, there’s no denying the importance of apps when it comes to developing your Shopify site. Although merely a sample of available apps, these Blanka-approved choices will help drive up average order values while streamlining the ordering, customer service process, and site functionality:
- UpCart: This app features a customizable drawer cart builder so that you can choose a seamless cart experience that matches the voice of your brand. You’ll also find tools for upselling and cross-selling products as well as cart announcement templates.
- AfterSell: When it comes to post-purchase upselling, AfterSell is one app that delivers it all. In addition to providing one-click up- and downsell links post-purchase, AfterSell provides customized review pages and FAQ pages with added upselling as well as A/B testing.
- ReConvert: The ReConvert app is a universally useful Shopify app for any brand looking to increase its AOV. Not only does it contain several helpful upselling features, it also collects birthdays, tracks orders, and supports product bundling.
- HelpCenter: The perfect all-in-one customer service tool, HelpCenter offers live chat and chatbot widgets, FAQ templates, self-service tools, and Helpdesk ticketing.
- Zigpoll: Use Zigpoll to create post-purchase surveys in region-specific languages—templates are provided, no coding experience necessary. Create a zero-party database to shape your ongoing marketing plans.
Conclusion: putting it all together
The information in this article demonstrates the importance of growing your Shopify store’s average order value, a term that refers to the average monetary amount spent per order.
This piece highlights five methods for increasing AOV, including creating bundles and limited-edition sets, using seasonal and offer-specific language, providing free shipping thresholds, selling branded accessories, and implementing suggested Spotify apps.
Looking for more resources to grow your brand with Blanka in 2024?
As a full-service subscription service, Blanka offers support with product development, warehousing, and product fulfilment. Unsure of the product you’d like to sell? We’re happy to send samples delivered straight to your door. With zero commitment, zero risk, and zero minimums, Blanka is the perfect home for you to start and grow your beauty and skincare Shopify business.
For more tips on growing your business with Blanka in 2024, check out our guide to setting beauty business goals and starting an e-commerce beauty brand.
