---
title: "How to increase average order value (AOV)"
author: "Performetic Ekibi"
url: "https://www.performetic.com/en/blog/how-to-increase-average-order-value"
published: "2026-06-14T08:00:00.000Z"
updated: "2026-10-05T01:24:56.906Z"
---

# How to increase average order value (AOV)

> Average order value (AOV) is total revenue divided by the number of orders, and you raise it with bundles, relevant complementary product suggestions, free shipping or gift thresholds and tiered discounts. The right approach grows the basket while protecting margin, so measure every tactic against contribution margin per order, not just order size.

## How do you increase average order value (AOV)?

You increase average order value by giving customers more value per order: bundling products that are used together, suggesting complementary items at the right moment, setting a reachable threshold for free shipping or a gift, and rewarding multi unit purchases. The goal is not just a bigger basket but more profit left over per order.

AOV is one of the least discussed and most powerful levers in performance marketing. If you can get the same number of orders from the same ad spend and raise the value of each one, profit grows while acquisition cost stays flat. That makes AOV a direct part of profitable scaling.

## How do you calculate average order value?

The formula is simple: AOV = total revenue / number of orders.

**Example:** a cosmetics brand earns 60,000 EUR from 1,500 orders in May. AOV = 60,000 / 1,500 = 40 EUR.

Be consistent about the definition: are taxes included, is shipping included, are returns deducted? Decide once and use the same definition in every report. Also look beyond the average, because the distribution of order values is far more useful when you set thresholds.

### Why does AOV directly affect ad efficiency?

The ad cost of winning an order does not change when the basket gets bigger. For a brand paying 10 EUR to acquire an order, lifting AOV from 40 EUR to 47.50 EUR raises ROAS from 4 to 4.75 on the same spend. We explain how to set a target ROAS from your margin in our [break even ROAS guide](/en/blog/break-even-roas-calculator-target-roas).

## How do bundles grow the basket?

Bundling products that are used together reduces decision effort and adds several items to the cart at once. A good bundle:

- Contains products that genuinely belong together (shampoo and conditioner, camera and memory card).
- Is clearly cheaper than buying the items separately.
- Shows the saving explicitly: "57 EUR separately, 49 EUR as a bundle".
- Appears on the product page, directly under the single item.

Check your margin when setting the bundle discount. A high margin item inside the bundle can offset the discount on a lower margin hero product.

## Where should you cross sell and upsell?

Cross selling suggests complementary products; upselling suggests a more complete version of the same product. Nielsen Norman Group's guidelines for recommended content stress that recommendations should fit the user's current task and make it clear why they are shown. Irrelevant suggestions distract and erode trust.

A practical placement framework:

| Placement | Suggestion type | Watch out for |
| --- | --- | --- |
| Product page | Upsell and bundle | Must not compete with the main buy button |
| Post add to cart panel | Complementary items | Two to four items max, one tap add |
| Cart page | Items that reach the threshold | Must not push the checkout button down |
| Checkout | Not recommended | Distracts and can lower completion |
| Post purchase email | Replenishment and complements | Time it to the product's usage cycle |

We cover post purchase cross sell flows in our [ecommerce email automation guide](/en/blog/ecommerce-email-automations).

## How do you use free shipping and gift thresholds?

A free shipping threshold is the best known way to raise AOV. Shipping cost is also one of the most common reasons for abandonment: in Baymard Institute research, 40% of shoppers said they left because extra costs such as shipping, taxes and fees were too high. A threshold turns that cost into a goal in the customer's mind.

For an effective threshold:

1. Look at your order value distribution and choose a level just above where a meaningful share of orders currently land.
2. Show the remaining amount in the cart and on product pages: "You are 6 EUR away from free shipping".
3. Suggest affordable items in the cart that close the gap.
4. Calculate the margin impact and test it.

Gift thresholds, such as a travel size product or accessory above a certain amount, work the same way and can perform well in beauty and personal care. If the gift costs less than shipping, it can even be the more profitable option.

## When do tiered discounts work?

Multi buy offers such as "buy 2, get 1 free" or "15% off 3 items" work best for consumable, stockable products: coffee, supplements, cleaning products, socks. Use them for specific product groups and periods rather than permanently, or customers may stop buying single items and wait for the deal.

You can also use anchoring in price presentation. As Nielsen Norman Group explains, people use the first value they see as a reference for later judgments. In a three size range, showing the largest size first can make the middle size look more reasonable. Use this with real options, never with misleading prices.

## Do subscriptions and multi packs help?

For products people use up regularly, a subscribe option or multi pack can raise both the single order value and lifetime value. Show "one time" and "deliver every month" side by side on the product page, with a small price advantage and the reassurance that customers can cancel any time. For multi packs, show the unit price saving clearly, such as "9 EUR each instead of 11 EUR".

## Worked example: which tactic is more profitable?

**Example:** a store with a 40 EUR AOV and a 35% contribution margin compares two options.

- **Option A, bundle discount:** bundle buyers spend 60 EUR, but the 10% discount cuts contribution margin to 27%. Contribution per order: 60 x 0.27 = 16.20 EUR.
- **Option B, gift threshold:** a gift costing 2 EUR on orders above 50 EUR. Orders above the threshold average 52.50 EUR, contribution 52.50 x 0.35 - 2 = 16.38 EUR.
- **Current state:** 40 x 0.35 = 14 EUR.

Both options raise contribution per order. Which one wins depends on how many customers take up the offer, and only a test will tell you that.

## What should you watch while raising AOV?

- Track conversion rate; aggressive suggestions can grow baskets while cutting order count.
- Monitor return rate; items added without real need often come back.
- Check the median order value too; a few very large orders can inflate the average.
- Review recommendation quality regularly; out of stock or irrelevant suggestions damage trust.

If you would like to calculate which tactic fits your order data best, you can book a free growth analysis with the Performetic team through our [contact page](/en/contact).

## Key takeaways

- AOV = total revenue / orders; keep the definition consistent and study the distribution.
- Higher AOV raises ROAS and profit without changing acquisition cost.
- Bundles, complementary suggestions, thresholds and tiered discounts are the main tools.
- Keep suggestions out of checkout; use the product page, cart and post purchase instead.
- Measure every tactic against contribution per order, conversion rate and returns.

## FAQ

### How do you calculate average order value?

Divide total revenue for a period by the number of orders in the same period. Decide whether taxes, shipping and returns are included and use the same definition in every report. We also recommend reviewing the full distribution of order values, not only the average.

### Does a free shipping threshold increase AOV?

When set at the right level it usually does, because customers just below the threshold add items to avoid paying for shipping. Choose the threshold from your order value distribution, show the remaining amount in the cart and validate the margin impact with a test.

### Should I show product recommendations in checkout?

Usually not. Checkout exists to complete the order, and recommendations can distract shoppers and lower completion. Showing complementary items on the product page, in a post add to cart panel, in the cart and in post purchase emails is a safer approach.

### What if AOV rises but conversion rate drops?

Look at revenue per visitor and contribution margin per order. If the AOV gain outweighs the conversion loss, the change may still be profitable. If not, reduce the number of suggestions, lower the threshold or limit the offer to a narrower product group and test again.

## Sources

- [Baymard Institute: Cart Abandonment Rate Statistics](https://baymard.com/lists/cart-abandonment-rate)
- [Nielsen Norman Group: UX Guidelines for Recommended Content](https://www.nngroup.com/articles/recommendation-guidelines/)
- [Nielsen Norman Group: The Anchoring Principle](https://www.nngroup.com/articles/anchoring-principle/)