One of the guaranteed ways to boost revenue for e-commerce websites is to increase the Average Order Value. But, this is easier said than done. Your website may need to be revamped and a few key changes will have to be made. What are some of these changes that can positively ensure that the Average Order Value on your Etsy store multiplies dramatically? Read ahead to find out for yourself. 

What is the Average Order Value? 

But, before we get to how you can boost this statistic, let’s first try to understand what the term Average Order Value means. It is used to track the average dollar amount spent by a customer each time they place an order on your website. The figure is generally arrived at by dividing the total revenue by the total number of orders placed. So, let’s assume that your total revenue for June was $24,000 and the corresponding number of orders placed was 1000. So, the Average Order Value would come down to $24.

Calculating the Average Order Value on Etsy is a fairly simple process. All you need to do is download a spreadsheet of your older transactions and use the preset formula function to calculate the average order amount. 

While better Average Order Values automatically translate to higher revenues, there are other reasons why websites prefer their Average Order Cart Value to be high. It’s one of the key stats that investors look at when choosing to stake their money in an Etsy store. So, if you’re thinking of cashing out someday, then keep a close eye on this important statistic. It can well and truly make or break your business. 

How do I increase my Average Order Cart Value? 

This seems to be a popular question among a lot of emerging e-commerce stores. If you own an Etsy store and pondering about the same, here are some sure-shot ways to increase your Average Order Cart Value. 

  1. Offer discounts 

This goes without saying, but customers like to feel that they’re saving a buck or two when buying a commodity. The same applies to the products that are on offer on your Etsy store as well. You can play around with the price point and offer a discount to give consumers the feeling that they’re paying significantly lesser than what they originally would have had. They’re more likely to retain the name of the brand better and recommend it to their friends and family. 

  1. Link to other listings you have 

Once a customer lands up on your website, they need to get an idea of all the products that you’re offering up for sale. This will help them compare and choose what they feel is the better of the choices. They might also be encouraged to splurge on products or merchandise that they weren’t particularly on the lookout for. Think of how supermarkets function when a customer comes in looking for one article or item and ends up leaving with a bag full of items. 

  1. Customization 

Yet another easy way to increase the Average Order Value is to offer customization of your products. Think of your potential customer getting their loved one’s name engraved on a bracelet or a ring or getting the name printed on the jersey of their favorite sports team. These are just a few instances where customization comes in handy, but people generally love getting their gifts customized. This can help set you apart from your competitors and lends your Etsy store a personal touch that customers of today are after. You can also go a step ahead and offer gift-wrapping as an option and ask if they’d like for any special message to be written along with it. 

  1. Offer free shipping 

Most customers think paying for shipping is a matter of inconvenience. You can use this to your advantage and introduce a minimum Average Order Value above which no extra shipping charges would be levied. More often than not, consumers would add something to the cart to get over the minimum Average Order Value or find a more expensive alternative, both of which are better scenarios as compared to the previous ones. 

This is where bundling of products can come in handy. You can have a separate section of the webpage showing that customers had bought so and so products together. This may encourage them to do the same. Make use of a tiered price strategy in such circumstances. Have a baseline version which also happens to be the cheapest one of the lot, a premium version that is slightly better in quality and priced relatively higher, and a top-end version of the same product priced a lot higher. 


In most cases, a customer will likely pick the mid-range option and add the base-range option to avoid the petty shipping charges. A top-range product is usually only kept for display purposes and accounts for the least number of sales, but serves as a point of comparison.