How Small Business Owners Can Boost Christmas Revenue by Increasing Average Order Value

As Christmas approaches, the pressure to drive sales can be overwhelming for small business owners. But here’s the good news—you don’t need to acquire new customers to significantly boost your revenue. Instead, focusing on increasing your AOV (Average Order Value) can bring in more revenue with the customers you already have.

Let’s break it down with a simple example: If your current AOV is £20 and you manage to increase that to £30, you’ve just increased your revenue by 50%—without spending a single penny on customer acquisition.

Sounds good, right? So, how can you achieve this? Let’s dive into practical, actionable ways you can increase your AOV this Christmas season.

Upselling involves encouraging customers to purchase a more expensive version of an item or adding premium options. Cross-selling suggests complementary products that go well with their current selection.

For example, if a customer is buying a candle, offer a candle snuffer or a matching candle holder. By offering related items that enhance the experience, you make it easy for customers to spend more.

Shopify App Recommendation:

• Bold Upsell : This app lets you create smart upsell and cross-sell offers based on what the customer is already buying.

People love a deal, especially during the holiday season. Bundling complementary products together at a slight discount can encourage customers to buy more than they originally intended. For instance, if you sell skincare products, bundle a cleanser, moisturizer, and serum into a set.

Not only do product bundles increase AOV, but they also simplify the shopping experience for customers who are looking for the perfect gift.

Shopify App Recommendation:

• Bundler – Product Bundles : This app allows you to create custom bundles, encouraging customers to buy more products at once.

A classic yet powerful strategy. Set a minimum order value for customers to qualify for free shipping, which can nudge them to add an extra item to their cart.

For example, if your average order value is £30, you can set your free shipping threshold at £40. Many customers will happily add a little something extra to avoid shipping fees, increasing your overall revenue in the process.

Shopify App Recommendation:

• Ultimate Free Shipping Bar : This app shows customers how close they are to achieving free shipping, prompting them to add more items.

Holiday shoppers are always looking for ways to make gift-giving easier. Offering gift wrapping or premium packaging for an additional fee is a simple way to increase your AOV while providing extra value to your customers.

This could be as easy as offering festive wrapping paper or eco-friendly, branded boxes that elevate the presentation.

Shopify App Recommendation:

• Gift Wrap Plus : This app allows you to add gift wrapping as an upsell during checkout.

Encouraging customers to spend more by rewarding them for larger purchases is another great way to boost AOV. By setting up a tiered reward system, you can give higher rewards for bigger purchases.

For example, if a customer spends £50, they get 5% off their next order; if they spend £100, they get 10% off. This not only increases AOV but also incentivizes repeat purchases.

Shopify App Recommendation:

• Smile: Rewards & Loyalty : This app lets you create loyalty programs that reward customers for spending more.

Scarcity and urgency are proven techniques to increase order sizes. Offering time-limited promotions, such as “Spend £40 today and get a free product,” creates a sense of urgency and encourages customers to spend more to take advantage of the deal.

Shopify App Recommendation:

• Countdown Timer Ultimate : This app adds a countdown to your site to create urgency around your offers.

Offering a “Buy More, Save More” structure can easily drive up AOV. For example, “Buy 2 candles, get 10% off. Buy 3, get 15% off.” This approach encourages customers to buy in bulk, increasing the total value of their order.

Shopify App Recommendation:

• Quantity Breaks & Discounts : This app lets you set volume-based discounts, encouraging larger purchases.

Everyone loves exclusivity, especially during the holidays. Introduce limited-edition products or holiday-themed items available only for a short time. Pairing these items with an upsell can boost your AOV. For instance, if someone is buying a limited-edition Christmas candle, offer a matching wax melt for an additional cost.

Shopify App Recommendation:

• Shopify's Product Recommendations API : This built-in tool suggests related products on product pages and at checkout.

Increasing your AOV is one of the smartest ways to boost revenue without the hassle and expense of acquiring new customers. Implementing just one or two of these strategies can have a dramatic impact on your holiday sales. And by leveraging the right Shopify apps, you can automate much of this process, ensuring you maximize revenue with minimal extra effort.

Remember, it's not just about offering more—it’s about offering the right products, bundles, and perks that align with your customers' needs during this festive season. Get creative, and watch your Christmas revenue soar!