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Oct 01, 2019
How to Maximize the Average Purchase Size: Best Practices
No matter what size your ecommerce venture is, you’ll always want to be looking at ways to increase your sales figures. 
This is especially true if you notice that your sales figures have begun to plateau month over month or, worse, they are in decline.
Finding more customers by generating more traffic and leads is of course one of the ways you can boost your sales figures. But there might be an easier way to increase sales than that.

When you have customers who are already prepared to spend money in your online store, it stands to reason that one of the most logical ways to increase your revenue is to encourage those customers to spend more money with you in their transaction.

To do this, you need to determine what your average purchase size is and set yourself targets to improve on it.  For example if you have 100 customers who spend on average $50 each, getting them to spend at least $10 more will generate another $1000 for your business.
In order to achieve this, you must find ways to convince your customers to add more items to their carts. These are some of the best tried-and-true strategies to do so:

1. Offer free shipping at a certain spend amounts

Customers don’t like paying for shipping. It is often an impediment to them making an online purchase. But if there is free shipping, they’re more likely to buy from an online seller.  Research from Deloitte found that 40 per cent of customers are willing to buy more items when shipping is free.

Setting a threshold for free shipping – where customers are encouraged to spend a certain dollar value in your store so they don’t have to pay for shipping – can help you to increase the average purchase size.

2. Give discounts and freebies at particular spend  amounts

Other ways to provide an incentive for customers to spend to or above a particular amount include offering a discount on all orders over a certain spend point, or perhaps including a free item at a certain spend point. 

3. Upsell or offer complementary products

Another proven way to increase average purchase size is to provide suggestions for complementary products when someone adds something to their shopping cart. For fashion retailers this can include strategies such as showing similar items or making recommendations such as “customers who bought this item also purchased…”

A smart way to upsell and offer complementary products is to use SuitApp – an AI-based software solution that generates entire outfit suggestions to your customers based on your product catalogue, recommending items that would work well in an outfit with the piece of apparel the customer is looking at.

4. Create urgency

When an incentive to buy is time sensitive, for example a sale or offer ends at a certain time, customers will generally respond to this sense of urgency by purchasing in the window that you have set the special offer to be available.