How to Increase Average Order Value for Your Online Vape Shop
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A company can not grow without a solid customer base. Whether it’s a retail or a B2B company, maintaining and increasing the number of customers keeps you relevant and in style.
But it’s not the only way to increase your revenue.
Because you’re already operating or thinking about operating your own online vape shop, it’s likely you’re already acquainted with the phrase ‘average order value’, which means the average amount of dollars spent on orders placed through your website or mobile app.
The average order value formula is simple. To calculate, divide the total revenue by the number of orders placed.
That said:
A great way to increase revenue is by increasing average order value. Your job is to increase the likelihood of more spending by offering a robust product lineup that customers find value and a bargain in.
For instance:
If a customer buys $50 on products each month, it’s your goal to duplicate or increase that order value the next time around. Of course, this is easier said than done.
Thankfully:
There is no lack of strategies to help you increase average order value.
TABLE OF CONTENTS
Best-Selling Products to Look Into
How to Increase Average Order Value
Conclusion
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Best-Selling Products to Look Into
Regardless of how much effort you put into your strategies to increase average order value, none of them will be effective unless you have great products paired with great prices, especially in an industry where competition is as abundant as within the vaping world.
Best-Selling Nicotine Vape Juice by Naked 100
Naked Lava Flow vape juice comes in 60ml bottles and has four different nicotine strengths to choose from: 0mg, 3mg, 6mg, and 12mg. Find more Naked 100 Products here!
Best-Selling Disposable Device by Alphaa Sigma
You can get the Alphaa Sigma disposable device in a 10-pack box and in 15 different flavors.
Best-Selling TFN Vape Juice by Jam Monster
The strawberry flavor by Jam Monster comes in a 100ml bottle and has three different nicotine strengths to choose from: 0mg, 3mg, and 6mg. Find more Jam Monster Products here!
How to Increase Average Order Value
Create Order Minimum Incentives
Many online shoppers would rather spend more money on their order if shipping was free. Offering free shipping once a certain dollar threshold is reached is a common technique used to increase average order value and this is probably the clearest example of how simple the strategy can be.
There are plenty of ways to incentivize an order minimum. Offer discounts on selected spending amounts or provide exclusive discounts on purchases with high spending totals. The amount you incentivize an order minimum is totally up to you.
Cross-Selling Complementary Products
If you’ve ever made a purchase on Amazon, then it’s likely that you’re familiar with the phrases ‘frequently bought together’ or ‘buy it with’. These handy little suggestions are products of the algorithm that Amazon uses to cross-sell more products.
Cross-selling is the practice of selling an additional item to a customer that was only shopping for one product. This is usually done by offering an item that would pair well with or increase the perceived value of the item.
For instance:
If your customer is buying a sub-ohm device for the first time, you have a chance to cross-sell them a sub-ohm-friendly vape juice.
Cross-sell by making sure that your product descriptions include compatible product pairings and offering a link to the suggested pairings. You can also mimic Amazon’s strategy and design an algorithm that will automatically suggest a second item.
Upsell Higher-Revenue Products
Naturally, there will be some products in your lineup that sell better than others and increase revenue. Sometimes this is credited to the higher quality of the product and other times it comes down to how successful negotiations were with your vendor.
Whatever the reason is, it’s not a given that customers will shop for these products first, especially if the products are new and haven’t yet established their credibility with customers.
Much like cross-selling, you’ll want to make recommendations for your newer (pricier) product in a way that communicates greater value to your customers.
Bundles and Discounts
Bundles are more than just discounted products. A bundle is only attractive if the items in the bundle are suited to the type of client you’re offering them to.
For instance:
You might not do well if you are offering a variety pack vape juice bundle to a customer who only vapes fruit-flavored e-juices. But you would have a completely different result if you offer the bundle to a customer who has demonstrated being open to experimenting with different flavors.
On the other hand:
You have the discount incentive, which motivates customers to pay a little more for multiple things at once. That said, bundles might not increase the amount of overall revenue if you sell each item separately, but they do ensure that you will sell your products, clearing up space for you in the warehouse and increasing the average order value.
Customer Loyalty Programs
Customer loyalty programs give recurring customers a better price than one time shoppers. If they are frequent vapers, then it’s likely that they’ll purchase all their products from you if your exclusive discounts and new product launches are appealing.
Customizable Experience
There’s a place I buy lunch from at least once a week. Their food is ok, but their prices are inexpensive and their customer service is amazing. Part of this has to do with how quickly they deliver my lunch, but the other part has to do with the fact that when they answer the phone, they greet me using my name.
While this is an example of a customized or personalized shopping experience that may not apply to your vape shop, it should give you an idea of what’s possible. Creating targeted marketing campaigns and offering discounts that will actually interest your audience is crucial and more than likely will increase average order value with online customers.
Limited-Time Discounts
Have you ever looked at the discounted items within your full Amazon cart and noticed the clock on them ticking? While you won’t have access to that discount when the timer runs out, it’s also likely that you’ll be able to find a discount on that same item once again further down the line.
What that timer is really for is to create urgency. Purchasing the item immediately is more valuable to Amazon than it would be in 2 or 3 months’ time.
But you can use limited-timed discounts to motivate customers to increase order value without feeling you’re doing something wrong. Yes, you are motivating customers to buy more, but if they’re interested, then it means that they’re actually getting what they want for less money.
Display Positive Product Reviews
In order to do this correctly, you’ll have to display all the reviews, good and bad. But you can also respond to negative reviews to see how you can make their next experience better. Because of great customer service, maybe next time they’ll write a positive review or even rewrite the negative review they wrote. It’s actually quite easy to turn a negative experience into a positive one as long as you’ve trained your employees on stellar customer service.
But the point is:
Displaying positive feedback from other customers for a specific product will likely encourage other customers to submit the purchase order. Ultimately, what you’re striving for is to have enough positive reviews attached to products to increase the average order value.
Conclusion
There are dozens of different ways to increase average order value. The tips displayed above are just the tip of the iceberg but should also be enough to get you one step closer to your revenue goals. Remember to carry popular products that you know customers will buy. Make sure to visit VapeRanger wholesale and get your hands on top-quality products at incredible prices.
