How to Increase Average Order Value with Upselling and Cross-selling

Average Order Value (AOV) is a key metric for any e-commerce or retail business. By encouraging each customer to spend a little more per transaction, you can dramatically increase your revenue without increasing your marketing spend. The two primary techniques are upselling and cross-selling.

What is Upselling?

Upselling is the practice of encouraging customers to purchase a more expensive, upgraded, or premium version of the chosen item. Example: 'For just a little more, you can get the pro version with double the storage.'

What is Cross-selling?

Cross-selling is the practice of inviting customers to buy related or complementary items. Example: 'Customers who bought this phone also bought a screen protector and a case.'

Effective Strategies

• Product Bundling: Offer a package of related products for a slightly discounted price.
• 'Frequently Bought Together': Use your sales data from your POS or e-commerce platform to identify and display products that are commonly purchased together.
• Offer Free Shipping Thresholds: Encourage customers to add more items to their cart to qualify for free shipping.
• Train Your Staff: In a physical store, train your sales staff to intelligently recommend relevant accessories or upgrades at the point of sale.