The easiest way to increase the revenue and profit for an ecommerce business is to increase the amount customers spend on the store. It is also referred to as increasing the average order value (AOV for short).
But what is Average Order Value and how do you calculate it?
AOV is the average amount that each buyer spends per transaction in your shop or store. In short, it indicates the revenue that comes with every order that is placed.
Although, there are tools available, like Cartoids, with which you can monitor and grow your AOV, we think you should still know how to calculate it yourself.
You can find your AOV using the simple formula:
Average order value = total revenue / number of orders.
It is an easy calculation, but with 100s and 1000s of customers coming in, we recommend using Google Analytics to track their AOV.
You can set it up in 4 easy steps:
1. Enable eCommerce tracking in your Google Analytics
2. Navigate to Conversions » Ecommerce » Overview
3. Identify the AOV chart under the Transactions table on the right.
4. You can also view AOV by traffic source by navigating to Acquisition » All Traffic » Source/Medium and click Ecommerce under the Explorer tab.
Average Order Value is an important metric, with which you can leverage profitable traffic sources and remove the ones that do not perform.
With a better understanding of such a key metric, let us share 5 ways you can improve your AOV.
When buyers visit a store, they normally search for the item they want, process the order and drop out. This results in lower average order value along with the smaller carts.
Instead of creating distractions for them, we suggest setting up product recommendations or complementary products on your cart or product pages. This way, you can catch them with targeted product recommendations when they end up on your product page.
Upselling, simply put, is similar to talking someone into getting a more flashier and expensive type of product. The best part is, upselling works!
A good example is the Dollar Shave Club. The store lures people in with the promise of a dollar and then shows them 2 pricier options which offer far more features.
Cross-selling is recommending a product related to the one your customer is about to purchase. Referring back to the Dollar Shave Club, they sell skin care products along with their razors.
Offering upsells and cross-sells are the best way to increase your average order value.
Setting up order minimums for free shipping or discounts is a great way to increase your AOV. You can give your customers a huge incentive to increase their spending on your store.
Organifi has increased their AOV by getting their customers to “buy more and save”. They increase the amount of discount offered on their products when customers place a bulk order. Truly genius!
Customer loyalty programs build what they are named after - brand loyalty. They create strong customer relationships and increase average order value.
Loyalty programs offer discounts to repeat customers, and increases the value of the discounts as the average spending increases. Those who spend most are added into an exclusive VIP club, where they are given exclusive discounts and benefits, normal customers do not experience.
You can question whether this works. And we will gladly answer: YES! So much so, that loyal customers spend 120% more than new customers, year after year.
Selling your product as bundles can have a huge impact on improving your AOV. It can be used to not only “complete” your product, but also offer ease to your customers. The ease of having read-made bundles for them to choose from, without getting them to look around for multiple products around the store.
If we look back to the Dollar Shave Club, their store offers starter sets targeted towards customers who are confused about making their first purchase.
Well there you go, our 5 best ways to increase your average order value. Hopefully, these tips cannot only benefit you by increasing your average order value but also create returning customers.
Do you think we missed something? Well drop your suggestion in the comments section. We would love to hear from you.
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The whole point of finding an untouched niche is that you want to bring people those products and services that aren't being sold already by other sellers. During the hunt for the perfect niche, you might get a little tempted by all the current products on different websites. And when this happens, you should also realize that these products belong to high competition niches. You don't want to get in that kind of trouble, right? If yes, then stick to low competition niche markets that aren't touched yet.
To assist you in this process, today we are here with some untouched niche markets 2020.
Believe it or not, both the AI and VI technology are taking over the world - with, the VI technology considered the "next big thing" for eCommerce and dropshipping businesses. The demand for VR products is increasing with time, primarily because this technology is now being implemented in the entertainment industry. Several virtual reality movies are being released, and above everything, there are VR games that require VR products for the users to get entertained. In a nutshell, for your next big break, you need to consider this niche in 2020.
Technology has changed the world at a whole other level .Every field is getting digitized - especially education. Virtual education is already in place and being utilized by several institutes - both big and small. And now, the technology is slowly moving in and influencing our everyday lives - interactive books, gamified lectures, and touch-screen boards. In fact, the COVID-19 pandemic has further laid stress on how critical it is for conventional forms of education to go digital.
Eco-friendly products are the new talk of the town. As of now, people are more concerned about saving nature than anything else. This is the reason why the eco-friendly product's niche can be a real deal for you. One of the best examples here is the trend of biodegradable trash bags. People are now banning plastic bags and shifting to biodegradable ones. This is just one example. If you conduct research on it, you'll find several other such products to sell.
The love for animals is endless and timeless. In fact, even after 50 years from now, you'll see people obsessed with their pets the same way that they are today. You can take advantage of this emotion and turn it into a business to earn some real-time money. The pet products niche will always be a win-win for you. Furthermore, not a lot of people are working on it so you can definitely try your luck here.
CBD products are the hottest health-related offerings that people are going crazy about. With time, CBD products will grow in popularity. There are CBD oils, supplements, vape juices, gummies, and many other products that you can deal in. It’s a low competition niche and there’s a huge variety of products that you can try. People have witnessed a demand in CBD products so this is just the right opportunity for you to cash.
Everyone is aware of the current COVID-19 situation. This pandemic has caused chaos in the whole world . Most importantly, what it taught people is that their health should be their number one priority no matter what it is. The concern for health and hygiene is what makes this niche profitable for you this year. You can bring people new and unique hygiene products not just to earn money but to help them stay safe and healthy.
The solar products niche might seem a little competitive in the beginning, but if you conduct detailed research on it, you'll see that it's not as competitive as you think. On the other hand, when it comes to the profit, well, you should rest assured that you'll make quite a good fortune in this niche. There are solar panels, solar power banks, and solar batteries that you can get started with. With time, the demand for these products will increase, and you'll see how your business's success skyrocket.
Unique automobile accessories aren't easy to find nowadays, but at the same time, there's a high demand for them. In simpler words, this niche is both profitable and has a low competition, which is what you are looking for. In this niche, you can opt for different products like car charges, smartphone holders, and other wireless gadgets that can be used in vehicles.
Final Verdict
These are the top best, most profitable niche markets to work this year. If you want to boost your eCommerce business's success or want your dropshipping business to work as per your plan, the wise thing to do is start working on any of these niches right now.
But, this can be really tricky!
In such cases,
The exit-intent Pop-ups would be the key weapon, if used smartly they will radically increase the conversion rate.
Basically, the exit-intent pop-ups appear at the moment when visitor trends to move the mouse to leave a page. They give you the last chance so that you can communicate with your visitor about something really potential. According to one research, about 15-20% of lost customers can be saved through exit-intent pop-ups.
Moreover, they are more effective as compared to normal popups as they only appear when your visitors are about to leave the site or you can say thinking to switch to another window. So today we are going to discuss 5 popups tactics that can help you maximize your conversion rate.
One of the most effective ways to maximize your conversion rate is by garbing the email address by simply offering the visitor an incentive to subscribe. Normally, the conversion rate success of email collecting popups depends on the effectiveness of the image copy and the offer.
For example, This first popup from Fab.com strikes all the main points that helped them turn traffic into customers. Let’s break it down piece by piece.
First, the enjoyable phrasing and a statement about the deal are an immediate incentive to respond. The value proposition (“Enjoy 10% off your first order”) is spelled out in capital letters will automatically convince the customer to fill out the form. Visitors are way more likely to react to clever, fun wording and marketing image copy, which usually means you are far more likely to make another conversion.
Truly, exit-intent email, popups are great for collecting emails but, they can also help combat cart abandonment. Let’s take a look at some cool examples;
A simple CTA with a good offer, that convinces shoppers to complete their purchase.
Simple but effective, you can see they have displayed a big coupon on the cart page the moment visitors are about to leave the page this popup is one way to convince them to proceed to the payment.
The choice is something your visitor will always appreciate. This will improve conversions, as it’s more difficult to say “No” than to ignore the popup. The manner in which you incorporate your choices will matter greatly.
Obviously, your main goal is conversions. Yet, giving your visitors options will soften the marketing attempt and get the visit more fun for them.
Honestly, what a wonderful idea! This way a website will able to turn an annoying popup to a fun and enjoyable game. Rather than requiring your current email address, Zodeys allow you to exchange it for a chance to play with and potentially win a trophy! Gamification is really beneficial.
Sumo keenly identifies that a bouncing visitor may possibly have wanted a more engaged conversation with you before converting.
Because of this, they offer you a free call with their team each time a guest starts showing exit-intent. This method humanizes its brand and highlights its subject degree expertise in a non-pushy and in a magical way.
Exit-intent pop-ups have a distinctive position in online marketing. They’re a wonderful tool for sending the previous message to your visitors before losing them potentially forever.
There are several techniques to work with this message effortlessly and the depart intent popup examples above show you several strategies to achieve that.
However, it is ideal to think through what you are trying to reach and who you’re trying to attract. This will let you think of the most appropriate message.