What to Know About Low Average Order Value eCommerce

Improved Average Order Value (AOV) with 3PL Services

Understanding and Optimizing Low Average Order Value E-Commerce

Running an e-commerce business involves keeping track of various key performance indicators such as average order value (AOV). AOV refers to the revenue you generate per sale during a certain period. Low AOV means that your customers are spending less per order.

Having a low AOV presents various challenges including less profit per sale, dependency on volume, and slow business growth. However, there are instances where a low AOV e-commerce model makes sense, depending on your industry. Also, there are effective strategies to maximize your online business’s AOV.

Importance of AOV as an E-Commerce Metric

AOV influences how you approach marketing, pricing, and promotions. You can use AOV to gauge the health of your e-commerce business and optimize to realize better returns from every sale.

Overall, it can help your marketing team evaluate the efficacy of specific strategies. For instance, a low AOV gives you an opportunity to try out different marketing tactics. In this case, you can leverage upselling and product bundling and optimize accordingly based on results.

Ways to Increase Your Average Order Value

One of the best ways to encourage customers to spend more is through upselling and cross selling via timely promotions, offers, and product bundles. For instance, you can offer marginal or bulk discounts to move inventory faster.  You can also provide coupons and deals based on minimum spend thresholds.

Present additional purchase options like related, newly added, and popular products. Also, place high-value products in front of your visitors more. Loyalty programs that incentivize return customers also work wonders.

Offering a personalized customer experience is also important. Leverage user data to recommend products based on individual customers preferences and purchase history. You can also conduct personalized email campaigns to pique customer interest.

Optimizing your e-commerce site can also increase AOV. A responsive and intuitive website increases purchases from first-time and return visitors.

Ensure your website is easy to navigate with filtering options and optimized product pages. You should also streamline your checkout process. Checkout difficulties often lead to fewer purchases and cart abandonment.

Another effective way to maximize AOV is by streamlining your fulfillment process. It’s crucial to partner with a competent fulfillment company to support increased sales volume. After all, scaling is a major challenge for low AOV e-commerce setups. A fulfillment company can help you handle aspects like product storage, shipping, tracking, and prompt delivery.


It’s important to understand how AOV affects your e-commerce business. Implementing strategies to improve this metric can help ramp up overall revenue. Proper product promotion, pricing strategies, and optimized user experiences help you get more out of each order.

An important step toward e-commerce success is hiring a reputable fulfillment company to support your venture. Medallion Fulfillment and Logistics offers tailored solutions based on business goals and requirements.

Our services can help you improve AOV, save operational costs, and scale comfortably. Contact us today to unlock your e-commerce business’s full profitability potential.


Is Your eCommerce Business Ready to Outsource Fulfilment and Warehousing?

Cardboard box package with blur hand of Asian shopper woman picking product from shelf in warehouse. customer shopping lifestyle in department store or purchasing factory good concepts.

No matter how competent and ambitious you are, you can’t do it all. Successful eCommerce entrepreneurs know when and where to seek help. Are you ready to outsource to a fulfillment warehouse? Use these questions to guide your decision.

1. What type of product do you sell?

Many fulfillment warehouses offer general services that fit a wide range of products. Other companies support specific categories, such as clothing or appliances. Keep in mind that you’re likely to pay more for specialized services.

2. Does the cost fit your budget?

Outsourcing is counterproductive if it eats into your profitability. Crunch the numbers to make sure the value of the expense outweighs the cost.

3. Does the fulfillment company provide complete customer support?

Unlike brick-and-mortar stores, eCommerce businesses can’t provide face-to-face customer service. Email support is helpful, but it’s only part of the solution. A first-rate fulfillment service includes phone and online chat in their communication options. And don’t forget that you are also a customer who deserves quality support.

4. How does the fulfillment company handle mistakes?

While 100 percent fulfillment is always the goal, the reality is that mistakes happen. A customer may receive an incorrect or damaged item, or the order may be lost entirely. Get the company’s policies and procedures for damaged, lost, or incorrect shipments spelled out in detail so you don’t get unpleasant surprises down the road.

5. Are the fulfillment services scalable?

As your business grows, a fulfillment company’s services should grow with you. Don’t forget about short-term scalability, such as fluctuations in business during the end-of-year holiday season.

Experienced and Cost-Effective Fulfillment Warehouse Services

Our family-owned business has grown from a small operation located in a garage to a company with facilities on both coasts. Contact us at Medallion Fulfillment & Logistics to learn more.