Instead I’m going to sit here and think about how great it is to have a product that everyone needs, at a price that we all bitch about, yet still buy.
Wouldn’t it be great to have a product like that to sell everyday?
While the price of gas goes up once again, we have to get ready to take on price increases from our manufacturers and fuel surcharges from our freight carriers.
No business owner wants to raise prices on goods or increase shipping costs, but it’s a necessary evil when increases trickle down from suppliers. Unlike the airline industry who makes up for increases in fuel costs by charging for bags, seat assignments, more legroom and a can of cola, an eCommerce store owner needs to get creative to fight rising costs.
Instead of raising prices and shipping rates, work on ways to increase the average order value. The biggest cost of shipping is in the first two pounds, adding additional weight in the form of more product leads to more profit per order. Here are my top three ways to help increase your AOV:
- Cross-Sell / Up-Sell – If you sell a flashlight, make sure you’re offering the batteries. Push related items to your customers on item pages and as part of the checkout process. The customer really doesn’t want that flashlight to arrive without batteries, so chances are the products you’re cross-selling and up-selling are going to be purchased if they’re a good match.
- Incentify to Buy – Whether it be free shipping over $50 or a free gift over $75, give your customer an incentive to spend more money with you. Discounts, deals on shipping, even a free gift are great ways to get the AOV up to where you need it to be.
- Combine & Save – If you’re selling clothing or items that can be grouped intelligently, take advantage of combination deals such as: Buy this hat and sweater and get the matching gloves at 25% off.
By putting your thinking cap on and looking at the products you sell, I’m sure you can come up with other creative ways to help increase order size. Just don’t tack on an “online shopping convenience fee” – it’s as popular as a pay toilet on a bus trip.