How to increase average order value: give buyers a reason to add a second item. The methods that work best for small shops are bundles, a free-shipping threshold set a little above your current AOV, “buy 2, save 10%” offers and relevant add-ons at checkout. AOV is revenue ÷ orders, so $12,600 from 280 orders is $45.
Raising AOV is one of the cheapest ways to grow profit, because a bigger order shares one shipping label, one set of fixed fees and one ad click. This guide covers the formula, the tactics with worked profit math, how to set a free-shipping threshold without giving away margin, and how to make bundle images that show buyers what they get.
- AOV = total revenue ÷ number of orders, for the same period.
- Bundles raise order value and per-order profit: in our example a two-item bundle at 10% off earns $17.25 per order vs $8.25 for a single item.
- Free-shipping thresholds work best a little above current AOV; check that the extra items cover the shipping you now pay.
- Higher AOV lifts ROAS directly: 20% more per order on the same clicks turns a 3.0 ROAS into 3.6.
- Show the bundle: one image with every item in the set helps buyers see the value. A free product collage maker does this in the browser.
How do you calculate average order value?
Divide revenue by the number of orders for the same period. $12,600 of sales from 280 orders gives an AOV of $45.
Decide once whether revenue includes shipping charged to buyers, and whether it's before or after discounts and refunds, then stay consistent. Most store dashboards show AOV already; marketplaces often show total sales and orders, so divide them yourself. Leave out sales tax, since it isn't your money.
Track AOV per channel if you can. Buyers from ads, email and marketplace search often order differently, and an average across all of them can hide a channel that only ever sells single cheap items.
What are the best ways to increase average order value?
Make the second item easy to find, easy to justify and clearly better value than buying alone.
| Tactic | How it works | Best for |
|---|---|---|
| Bundles and sets | Related items sold together, often at a small discount | Products used together: skincare routines, candle sets, tool kits |
| Free-shipping threshold | Free shipping once the cart passes a set amount | Shops where shipping is a big share of a small order |
| Quantity offers | “Buy 2, save 10%” or multipacks | Consumables and gifts: soap, socks, stickers, cards |
| Cross-sells | “Goes well with” items on the product page or cart | Accessories, refills, care products |
| Upsells | A larger size or better version for a little more | Products with sizes or tiers |
| Gift options | Gift wrap, a card or a gift set | Holiday and occasion shopping |
| Spend-based discounts | “$10 off orders over $75” | Sales events, when you'd discount anyway |
Do bundles increase average order value?
Yes, and they usually raise profit per order too, because the bundle shares one shipping cost and one fixed fee.
Here's the math for two $25 products, each costing $8 to make, with $5 shipping per order and a 15% marketplace fee (a placeholder; use your own platform's rate).
| Single item | Two-item bundle at 10% off | |
|---|---|---|
| Price | $25.00 | $45.00 |
| Marketplace fee (15%) | $3.75 | $6.75 |
| Product cost | $8.00 | $16.00 |
| Shipping | $5.00 | $5.00 |
| Profit per order | $8.25 | $17.25 |
| Margin | 33.0% | 38.3% |
| Break-even ROAS | 3.03 | 2.61 |
Even with 10% off, the bundle earns more than two separate single-item orders ($16.50), because it saves a shipping label. The higher margin also lowers the ROAS your ads need to break even (see break-even ROAS). Before setting the bundle discount, run the numbers through our free discount calculator or how to calculate discount percentage.
- Bundle things people already buy together. Check your order history for pairs.
- Keep it to 2–4 items so the price stays within reach.
- Show the saving as a dollar amount: “Save $5” is easier to grasp than a percentage on small prices.
- Give the bundle its own listing and photo, so it shows up in search on its own.
How do I set a free-shipping threshold?
Set it a little above your current AOV, close enough that buyers can reach it with one more item, then check that the extra items pay for the shipping you're now covering.
- Find your AOV and your most common add-on item prices. With a $45 AOV and add-ons around $12–$15, a $55–$60 threshold is one item away.
- Work out what free shipping costs you per qualifying order. If buyers paid $6 for shipping before, you now give up $6 on every order above the threshold.
- Check the extra profit covers it. A $15 add-on costing $5 with a 15% fee adds $7.75 profit, which covers $6 of shipping with $1.75 to spare.
- Remember orders already above the threshold. They get free shipping without spending more, so that's a pure cost. The higher your share of large orders, the higher the threshold should be.
- Show progress in the cart: “You're $8 away from free shipping”.
- Review after a month: did AOV rise, and did profit per order rise with it?
A rule of thumb you'll see is a threshold 15–30% above current AOV; at a $45 AOV that's about $52–$59. It's a starting point for a test, not a law. The right number depends on your shipping cost and what your add-ons sell for.
Some sellers build shipping into the price and offer free shipping on everything. That can work, but it raises the price of every single-item order and may cost you sales on price-sorted marketplaces. Test one change at a time so you know which one moved AOV.
What is the difference between upselling and cross-selling?
An upsell offers a bigger or better version of the item being bought; a cross-sell offers a different, related item to go with it.
- Upsell: the 16 oz candle instead of the 8 oz, a 3-pack instead of one, the gift box version. Keep the step up modest; a small price jump for clearly more value works best.
- Cross-sell: wick trimmer with the candle, a case with the phone stand, care spray with leather goods. Pick add-ons that cost less than the main item.
- Where to show them: on the product page, in the cart, and in the order confirmation email for the next purchase. Marketplaces limit what you can add, so use bundle listings and multi-quantity options there.
How do I make bundle and set images?
Show every item in the bundle in one clear image, so buyers see exactly what they get without reading.
The free way: photograph the items together on one surface, or combine separate photos. Our free product collage maker takes 2 to 9 photos and arranges them in one of six layouts (2 side by side, 2 stacked, 2 × 2, 3 × 3, 1 big + 2 and 1 big + 3), at 1080 × 1080 or 1080 × 1350 for Instagram, 2000 × 2000 for marketplaces, or 1200 × 628 for ads. You set the spacing, corners and background, and download a JPG or PNG. It runs in your browser and your photos aren't uploaded.
Two cautions. Most marketplaces' main image rules (Amazon's especially) don't allow collages, so use the collage as a secondary image, in ads and on social media; see Amazon secondary images. And a collage looks like one set only if the photos match: if items were shot on different backgrounds, put them all on the same white or styled background first with the AI background generator (credits apply) or a white-background tool.
Make your bundle photos match. Put every product on the same white, brand-color or lifestyle background, with each product kept exactly as you shot it, then combine them into one bundle image.
Make product photos7 days free · 50 credits · No credit cardWhy does average order value matter for ads?
Because ad costs are per click, not per item: a bigger order on the same click raises ROAS and lowers the cost of each dollar of sales.
If your ads get the same number of orders and AOV rises from $45 to $54 (20%), revenue from those ads rises 20% and a 3.0 ROAS becomes 3.6. Across the whole shop, 280 orders at $54 is $15,120 instead of $12,600. Higher order value also helps you afford more per new customer; see how to calculate customer acquisition cost. For seasonal sets, holiday gift guide images covers how to present them.
Mistakes that raise AOV but lower profit
| Mistake | What happens | Better approach |
|---|---|---|
| Deep bundle discounts | Bigger orders, smaller profit | Keep discounts small; the saved shipping is the real gain |
| Threshold too low | Most orders already qualify, so it's just free shipping | Set it above current AOV |
| Unrelated add-ons | Buyers ignore them; the cart feels pushy | Offer items used with the main product |
| Tracking AOV only | AOV rises while order count falls | Watch AOV, orders and profit together |
Frequently asked questions
How do you calculate average order value?
Divide total revenue by the number of orders in the same period. For example, $12,600 in sales from 280 orders is an AOV of $45. Leave out sales tax and be consistent about shipping and refunds.
What is the fastest way to increase average order value?
A free-shipping threshold a little above your current AOV and a simple bundle of items people already buy together are usually the quickest to set up. Both give buyers a clear reason to add one more item.
What is a good free shipping threshold?
A common starting point is 15–30% above your current average order value, so most buyers are one item away. Then check that the profit on the extra items covers the shipping you're now paying, including for orders that were already above the line.
Do bundles increase sales?
Bundles mostly increase order value and profit per order, because related items share one shipping label and one set of fixed fees. Whether total sales rise depends on whether buyers see the bundle as good value, so show the saving and give it its own photo.
What is the difference between AOV and customer lifetime value?
AOV is the average value of one order. Customer lifetime value is the total a customer spends, or the profit they bring, across all their orders. Raising AOV raises lifetime value too, if order frequency holds.
Can I use a collage as my main product image?
Usually not on marketplaces like Amazon, whose main image rules require a single product on a white background. Collages work well as secondary images, in ads, on your own store and on social media. Check your marketplace's rules.
Put every product in a set on the same clean background, with each one kept exactly as shot, and make ad and channel sizes from the same photos.
Start free trialSee pricing7 days free · 50 credits · No credit card. Trial images carry a small “Made with aiarter” mark; paid plans export clean files you can use commercially.
