5 Proven Ways to Increase AOV for Fashion eCommerce Stores
Running a fashion eCommerce business isn’t just about getting customers to visit your store, it’s about maximising the value of every order. You’ve worked hard to attract shoppers, but too often they check out with just one item. Sound familiar? The average AOV in fashion eCommerce varies across sources, with Yotpo reporting an average of $97 (Yotpo), while Dynamic Yield indicates a higher global average of $165 (Dynamic Yield). However, top-performing brands regularly push beyond these values by using smart strategies. With increasing competition and rising customer acquisition costs, simply driving traffic isn’t enough. To stay profitable, retailers must focus on increasing Average Order Value (AOV) – the amount a customer spends per order.
Whether you run a niche fashion boutique or a global brand, boosting AOV means higher revenues, better retention, and a healthier bottom line. By leveraging targeted strategies and AI-driven solutions, you can encourage customers to add more to their baskets while enhancing their shopping experience.
What is AOV and Why Does It Matter?
Average Order Value (AOV) is the average amount a customer spends when placing an order on your online store. A high AOV indicates that customers are purchasing more items or higher-value products, which directly impacts revenue and profitability.
Formula to Calculate AOV: Total Revenue / Number of Orders = AOV
A strong AOV strategy allows retailers to:
- Increase profitability without increasing customer acquisition costs.
- Offset shipping and fulfilment costs.
- Improve customer lifetime value (CLV) by encouraging repeat purchases.
1. Implement Minimum Order Thresholds for Free Shipping
Fashion and footwear retailers commonly offer free shipping, but using it strategically can drive up AOV. Consider setting a minimum order amount for free shipping, such as “Free shipping on orders over £50” or “Next-day delivery on purchases above £200.”
Example: ASOS, a leading fashion retailer, implements free delivery incentives, clearly displaying these offers across product pages, banners, and checkout screens to encourage customers to add more items to their baskets.
Stat: According to a report by Shopify, 47% of customers are willing to add extra items to their cart to qualify for free shipping. Shopify
2. Leverage AI-Powered Upselling and Cross-Selling
AI-driven product recommendations are a powerful way to increase AOV. By showcasing complementary products or visually similar alternatives, retailers can encourage customers to buy more.
Tech-driven Solutions:
- AI-Powered Visual Search & Recommendations: Prime AI’s advanced visual product search identifies key product attributes from images and recommends similar or complementary items.
- Personalised Size & Fit Recommendations: A sizing tool like Prime AI Size Finder ensures customers get the perfect fit, reducing the need for multiple size orders and returns, leading to higher-value purchases.
Example: Multi-brand fashion retailers implementing AI-driven product recommendations see an average 15% increase in AOV, with click-through rates (CTR) on dynamic product suggestions ranging from 10% to 30% source
3. Create a Customer Loyalty Programme
Encouraging repeat purchases is essential for long-term profitability. A well-designed loyalty program can reward customers for spending more while fostering brand loyalty.
Key Loyalty Programme Strategies:
- Points-based system: Customers earn points per pound spent, redeemable for discounts or exclusive perks.
- Tiered rewards: Higher spenders unlock better benefits (e.g., free express shipping, early access to new collections).
Example: Brands like H&M and Nike successfully use loyalty programmes to encourage larger purchases.
Stat: Consumers in paid membership loyalty programs are 62% more likely to spend more money on that brand. (Smile)
4. Use FOMO (Fear of Missing Out) and Bundle Deals
Limited-time offers and bundled discounts create urgency, compelling shoppers to buy more before they “miss out.”
FOMO Techniques:
- Limited Stock Warnings: “Only 3 left in stock!”
- Time-Limited Discounts: “Flash Sale – Ends in 2 Hours!”
- Exclusive Member-Only Drops: Early access to limited collections.
Bundle Deals:
- “Buy 3, Get 1 Free” or “20% Off When You Buy 2+ Items.”
- “Complete the Look” – Curated outfit bundles at a discounted rate.
Example: According to optinmonster 60% of millennial consumers make a reactive purchase after experiencing FOMO, most often within 24 hours. Retailers like Boohoo and PrettyLittleThing use countdown timers and bundle discounts to drive AOV.
5. Offer a Personalised Shopping Experience
A personalised approach increases engagement and encourages shoppers to purchase additional items. By leveraging AI and customer data, retailers can tailor the shopping journey for each visitor.
Personalisation Strategies:
- Dynamic Pricing & Discounts: Special offers based on past browsing or purchase history.
- AI-Driven Size & Fit Recommendations: Tools like Prime AI’s Shoe Size Finder allow customers to get an accurate fit with a single foot image, reducing returns while encouraging high-value purchases.
- Personalised Email Campaigns: Recommend relevant products based on customers’ previous orders.
Example: Leading fashion retailers using AI-driven personalisation generate 40% more revenue from those activities than average players. (McKinsey) This underscores the significant impact that effective personalisation strategies can have on increasing revenue and enhancing customer engagement.
Final Thoughts
Boosting Average Order Value (AOV) is an essential growth strategy for fashion and footwear retailers looking to scale revenue while optimising operational efficiency. By implementing free shipping incentives, AI-powered product recommendations, loyalty programs, FOMO tactics, and personalisation, retailers can significantly increase basket sizes and drive profitability.
Investing in AI-driven solutions like Prime AI’s Size Finder and Visual Search that can offer dynamic product alternatives or add-ons, not only helps to increase AOV but also enhances the customer experience, reduces returns, and fosters long-term loyalty.
What’s your next step? Fashion eCommerce is evolving, don’t let your AOV stay stagnant. Implement these strategies today and explore Prime AI’s solutions to take your business to the next level.
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