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What factors affect the AOV?

AOV, or the average value of the basket, is one of the key factors showing whether our online store performs well and whether our promotional activities are going in the right direction. How should it be analysed in e-commerce?

What is the weight of your client’s basket?

The AOV (Average Order Value) is the measure of income earned to the total number of orders in a given period of time. Its value is calculated using the formula:

average\: order\: value = \dfrac{revenue}{number\: of\: orders} *100\%

Analysing the AOV we know the shopping behaviour of our clients, and thanks to the information we receive, we can make more informed business decisions. This indicator also provides us with information on the effectiveness of our promotional activities.

For example, if your online store generated revenues of £50,000 last month and purchases were made by 250 customers, the average value of each basket was £200.

What if you had an influence on the AOV?

Increasing the value of the shopping basket in the e-store is possible by introducing recommendation engines, namely:

  1. Personalise the home page – give your customers the feeling that the offer of your e-store has been created especially for them.
  2. Use up-selling and cross-selling – recommend the products of a higher value than those which the customer has previously purchased or recommend complementary products.
  3. Use zero search strategies – recommend to users of your online store other offers on the page with no search results. Instead of leaving your website, they will have the opportunity to learn about the additional offer.
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