3 Ways to Increase Order Value on Shopify

By Matt StefanikLeave a Comment

3waystoincreaseordervalueonshopify

Here is why you must strive to increase order value on your Shopify store: the majority of your Shopify customers will abandon their shopping cart and not complete their purchase.  Additionally, the majority of these cart abandoners will also never even return to finish the buying process!

Studies by Rejoiner and the Baymard Institute show that the average abandonment rate is between 68% and 80%!* Put another way, for every 100 users who add something to their shopping cart at your store, at least 68 of them will not even finish their purchase. These shopping cart abandonment statistics are quite staggering.

With this in mind, it is then vital to increase the amount spent by the 32% or less of your visitors who actually do complete their purchases. But how can you accomplish this?

Here are 3 ways to increase order value on your Shopify store.

 

Recommended Products

A great way to increase cart value is to show your customers other recommended products based on the product they are currently looking at or have already purchased. With this technique, you strategically promote products that are frequently purchased together or complement each other. This encourages customers to add more items to their cart and in turn, increase order value.

For example, if a customer has a video game system in their shopping cart you might recommend controllers or video games for them to purchase. Amazon reported a 29% sales increase after integrating a recommendation system into their process.

You do not have to be Amazon to capitalize on the power of recommendations. Some of the better Shopify themes have this feature built in, although it might be very basic such as showing products from the same category or product type. If your theme doesn’t have recommended products built in, or you want a more robust smart product recommendation system for your Shopify store, Ecomisoft offers the Recommendr app. Recommendr automatically upsells and cross-sells with recommendations on products, cart, and landing pages. Unlike basic built-in versions, Recommendr uses a machine-learning algorithm for improved accuracy over time as visitors and sales increase.

Recommendr also uses a unique URL structure that tracks the clicks recommended products receive. You can then log into a dashboard and see how your recommendations are performing and impacting your business over time.

 

Upsells

An upsell is when a customer purchases something more than what they originally placed in their shopping cart. This can be a more expensive version of the original product, additional features, an extended warranty, or even custom gift wrapping.

The key is to provide the offer and demonstrate to the customer why the upgraded option provides them with more value. A pricing table that compares the differences between products, levels, and packages is one way to do this.

A great example of successful upselling is JetBlue’s Even More Space initiative. JetBlue allowed customers to upgrade their tickets to seats with more legroom and the upsell resulted in $190 million in more revenue in 2014. Studies show that 48% of airline consumers and 59% of hotel guests have an interest in upgrades and added services.

It is clear if you do not explore upsell options for your Shopify store you are most likely leaving money on the table. Unfortunately, the ability to offer upsells post-purchase, meaning after your customer has already completed their original purchase, is not yet available by Shopify.

However, you can accomplish post-purchase upsells on Shopify with Ecomisoft’s “One-Up Sells” app, which also features one-click purchase capability meaning your customers won’t have to complete the checkout process again since their data has previously been captured, resulting in higher sales conversions. One-Up Sells will also allow you to offer downsells to customers who refuse your initial upsell.

 

Free Shipping Offers

Free shipping is a huge area for opportunity particularly to increase order value. Just think about these numbers: 49% of cart abandonment can be attributed to some form of shipping costs. However, by adding a free shipping threshold, companies have reported order increases of 90%, which is pretty remarkable.

When you offer customers free shipping for orders over a specific amount you send a message that they will receive more value if they increase their purchase amount. Many times customers will buy another product rather than be charged for shipping.

You can accomplish this by simply adjusting your shipping charges in your settings. For example: $0.01 – $19-99 = $5.95; $20.00 – $34.99 = $7.45; $35.00+ = $0 (Free Shipping). Depending on your theme, you might be able to display this on all your product pages, but most likely won’t be able to show each customer a running total displaying how much more they need to spend automatically to achieve free shipping.

Alternatively, Ecomisoft offers the Supr Bar app which provides options for free shipping. With Supr Bar you can display your free shipping offer in a static bar with dynamic text at the top of your site. Customers will then see progressive messages when they add more items in their shopping cart. After they reach the minimum free shipping threshold they receive a congratulations message.

The app also contains a built in geo-targeting option to only show free shipping offers to specific countries, such as the United States, when you are only offering free shipping domestically.

 

Conclusion

With such a high rate of shopping cart abandonment increasing order value of customers who complete purchases is incredibly important. The good news is that there are simple ways to achieve this depending on your theme, and you could also hire a developer to accomplish some of these as well.

Three of the most powerful methods for increasing overall order value on Shopify are product recommendations, upsells, and free shipping offers, all of which you can easily implement on your store with 3 of Ecomisoft’s apps: Recommendr, One-Up Sells, and Supr Bar.

To start increasing your order value on Shopify, start your 30-day free trial for any of Ecomisoft’s app bundles today.

 

source: http://baymard.com/lists/cart-abandonment-rate

Matt Stefanik
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Matt Stefanik

CEO at Ecomisoft
Matt Stefanik, aka "The Lifestyle Architect,"is a marketing expert, consultant, speaker, and lifelong entrepreneur. He has spoken at various marketing events around the world including in Atlanta, Cozumel, MX, Tokyo, Japan, Las Vegas, Montreal, QC Canada, and London, England. Matt is the co-creator of Shopify Store Pro - a Shopify educational brand, co-founder and CEO of Ecomisoft - an ecommerce software start-up, and Co-creator of GYMRATED™ - an ecommerce fitness brand.

In 2002, Matt dropped out of college, started his own real estate business, and 14 years later is still successfully self-employed.Matt is a husband, father of three, serial entrepreneur, and lover of comedy, craft beer, and The Ohio State Buckeyes.
Matt Stefanik
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