Average Order Value, It’s All About the Math

Webinar Conducted: September 2020

Ever wonder why Amazon serves you up “related products” when you purchase something through their online marketplace? They figured out that once you decide to buy from their marketplace, it’s much easier to get you to buy MORE in that moment than it is to get you to come back later. Amazon knows when you purchase that new faucet, you probably need new hookup lines, a pliers, some teflon tape, or maybe even a new sink to complete the job. If your goal is to have a faucet that works, you might buy the solution that solves your entire problem. And just like that, you went from a $129 purchase to a $229 purchase or more!

Understanding what problem your customers are trying to solve may open up the door to significantly increasing your average order value. If you see 1,000 customers a year, wouldn’t you want to make $10, $25,or $100 more on each purchase?