A key variable in the Ecommerce revenue formula is to increase your average basket value by encouraging customers to buy more products, or higher value products, on each purchase.
Here are nine effective methods to boost your average sales value:
1. Add Up-Sell Options At Checkout
When people get to the checkout page, they're already in the mindset to buy, so this is a great time to offer upsell options, such as a more advanced version of the product they are buying or a related accessory.
Make sure to include product images and descriptions, as well as any discounts or special offers that are associated with the upsell. That way, customers will be more likely to add the item to their purchase.
2. Gift Wrapping & Other Gift Options
If your products are bought as gifts, then one up-sell to consider is a gift-wrapping service. At the point of checkout, you can add the option for people to pay extra for this, and to add a card with a personalised message. You can go further, and add options for other up-sells here too such as balloons, chocolates, etc.
3. Show Complimentary Products – ‘Frequently Bought Together’
When customers are browsing a product page, you can show them other items that complement that particular product. For example, if you run a clothing shop, you could show customers items that go with the outfit they're looking at, especially if it is being modelled as a clothing look in the images on your website – you may have seen ‘complete the look’ as an option on some clothing websites such as ASOS or BooHoo, for example.
Another option is to show products that are ‘frequently bought together.’ This is a double whammy because it gives shoppers more ideas but also acts as a form of social proof. Amazon is well known for using this method to bundle their products together without selling them in one listing as such.
4. Offer Bundle Deals
Bundles of products at discounted rates are another great way to increase your average basket value. You can bundle a few related products (or multiples of the same product) together at a reduced price, lowering the cost per unit and making the purchase more appealing to customers than buying each item separately at full price.
It's also a great way to encourage customers to buy something that they may not have otherwise bought. For example, if you sell decorative candles, you could bundle them with a candle holder and discount both items. It’s a great deal for the buyer, and it means that they end up spending more with you than they would have otherwise.
5. Use Minimum Order Values
Minimum order values are not universally popular and may in some cases discourage sales but setting a minimum order value to achieve a particular incentive – such as free shipping – may sometimes incentivise customers to spend more. You could also offer a free gift or bonus for orders over a certain amount of money spent.
6. Offer Volume Discounts
For products that are bought in quantity, you can introduce price breaks which reduce the price per unit when people are buying a certain quantity. This can encourage people to buy more than they otherwise planned to as they increase their orders to take advantage of the lower prices.
7. Raise Your Prices
While discounting can increase conversion rates, it also hurts your margins. From a profit perspective, there’s a good case for increasing prices.
For example, with a margin of 30%, you could implement a 10% price increase and afford to sell 25% less – but still make the same total profit.
8. Sell More Premium Products
You may also want to consider selling more premium products. By offering higher-end items, you can increase your average basket value and make more money per sale, at the cost of potentially reducing your total number of sales. Some businesses find it easier to sell a few high-end products than many low-cost items. The increased profit margin can make up for the smaller number of sales.
Customers are often willing to pay more for items that offer better quality and performance. However, remember to focus on the customer experience and make sure that your products are worth the price and are affordable to your target personas.
9. Focus Your Marketing On Higher-Spending Customers
With many businesses, the 80:20 rule applies – 20% of your customers will give you 80% of your profit. Profiling and getting to understand your very best customers can help you understand how to find more of them. Knowing what your top spenders look like in terms of age, location, gender, interests, and behaviour can shape your targeting with your Google Ads, social media ads, and keyword strategy.
Find Out More
To find out more about how to boost your Ecommerce sales, download JDR Group's free guide or contact us today for personalised assistance in growing your business and increasing your average sale value through our Ecommerce digital marketing programme.
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