Being a business owner is not only about receiving profits all the time. It’s a hard and nerve-wracking job that takes lots of time and effort. There are so many things you should consider and steps you should take in order to stay afloat.
When computing the profitability of your enterprise, there are copious parameters you have to take into account. Yet, of the most important is average order value or AOV for short. It is an eCommerce parameter. It measures the average total of every order placed with a merchant over a defined period of time. Although AOV doesn’t allow you to get exact information about your gainings or profits, it gives you lots of useful data. Thus, you can get to know the following aspects:
- The major habits of your clients.
It’s necessary to understand how much your customers are ready to pay. You can also figure out how many items are generally bought per time.
- You define the most profitable and promising products of your enterprise.
It’s easy to select the most popular articles from your assortment.
There are copious tactics aiming at AOV increasing. It’s up to you to choose the most appropriate for your business. The most popular of them are the following:
You can hardly find an owner of an online store who has never used this method. It encourages individuals to buy a higher-end version of a product than what they originally desired to purchase.
- Enlarge your assortment.
It’s a really good idea to experience bundle selling. Yet, it’s necessary to choose the samples carefully to meet the needs of your target audience.
If your customers are able to get customized products and count on constant and competent, they are likely to purchase more and more items on your platform.
- Free shipping.
It’s a win-win solution for online stores of any size. Many beginning entrepreneurs are afraid of this tactic while they are sure they are to suffer from significant financial losses instead of getting profit. Yet, it’s only necessary to find a reliable logistics partner and give careful thought to the conditions of free shipping.
Nowadays there are so many versatile freight transport services that it’s possible to find a good solution for any enterprise. When it comes to the concept of free shipping, delays are out of the question. If you decide to increase AOV, you have to pick up the best freight forwarder. Nowadays you can do it even online. It’s a good idea to choose expedited shipping. It’s up to you to select the most appropriate mode of transportation, rates, and available options.
Although it sounds weird, logistics brokers are able to boost your average order value. If they manage to deliver your shipments fast, customers are likely to return to your online store.
To sum it up, it should be highlighted that it’s not a good idea to ignore AOV parameters. You have to pay attention to this feature all the time. It gives you lots of helpful data. If the figures do not satisfy you, it’s high time to implement the best tactics. You can’t cope without the assistance of competent and skillful freight forwarders.