Why AOV Should Be Your New Favorite Metric in 2025

The Ecommerce Revolution - Newsletter #2

Feb 10, 2025

If you're passionate about launching and growing a successful ecommerce business, you’re in the right place! This newsletter is packed with practical tips, AI-powered strategies, and smart automation hacks to help you market better, run smoother, and scale faster—without getting overwhelmed. Let’s build something great together! 🚀

The TL;DR:

Stat of the Week: 1 in 4 online shoppers now use BNPL services like Klarna and Afterpay.
Ecom Deep Dive: Why AOV should be your new favorite metric in 2025
On My Mind: Have a serve-first mindset
Podcast Spotlight: Ecommerce Marketplaces, Your Path To Success.

Stat of the Week

BNPL (Buy Now, Pay Later) Continues to Soar – 1 in 4 online shoppers now use BNPL services like Klarna and Afterpay, helping increase AOV by 30-50%. This is a stat you can’t ignore, especially for higher ticket items. Have you added a BNPL option to your site? If you are on a platform like Shopify, it’s super easy, just turn on the option in Shop Pay.

Note: As a merchant, you will pay higher transaction fees for that BNPL order (see your BNPL service for details), however, most data has found that having a BNPL option significantly outweighs the costs for the merchant

Ecom Deep Dive: Why AOV Should Be Your New Favorite Metric in 2025

AOV is one of the easiest ways to grow your revenue without needing more customers. Let’s break it down:

You get 100 orders per month with an AOV of $50.
That means $5,000 in revenue per month.

Now, without changing your traffic or number of orders, if you increase your AOV to $60, your revenue jumps to $6,000 per month.

That’s an extra $12,000 per year—without a single extra customer.

Instead of spending more money trying to attract new buyers, you’re maximizing the value of the ones you already have. We of course are not recommending you take your foot off the gas of acquiring more customers.

When Does This Matter for You?

AOV optimization is critical if:

✅ Your ad costs are rising. If you’re spending money to acquire customers, getting them to spend more per order helps you stay profitable.

✅ You have a steady flow of traffic but want more revenue. Instead of focusing on more visitors, make the most of each purchase.

✅ You sell products that naturally pair well together. If your items are frequently bought together, encourage bundling to increase order value.

✅ Your customers return often. Repeat buyers already trust you, so they’re more likely to add extra products when given the right incentive.

✅ You want a quick revenue boost. Increasing AOV is one of the fastest ways to generate more income without extra marketing spend.

📌 When to act? Now! AOV should be an ongoing focus, not just something you adjust during peak sales seasons.

Pro Tips for Action:

🔹 Tip 1: Offer Product Bundles or Upsells
Encourage customers to buy more by bundling related products together or offering a valuable upsell at checkout.

Example: Instead of selling a single product, create a 3-pack bundle with a small discount.

🔹 Tip 2: Set a Free Shipping Threshold
Encourage customers to spend just a little more to qualify for free shipping.

Example: If your AOV is $45, set free shipping at $60. Many customers will add an extra item just to reach the threshold.

🔹 Tip 3: Add a BNPL option at checkout

Example: See above…

🔹 Bonus Tip: Use AI to analyze and boost your AOV

Learn how to use AI to analyze and boost your store’s AOV. Click here to watch the video and join the conversation.

Increasing AOV is like finding extra revenue that’s already within your business. Instead of constantly chasing new traffic, focus on getting more value out of every order—and watch your revenue grow.

On My Mind

Building a business is both challenging and deeply rewarding. The Ecommerce Revolution is the sixth business (all ecommerce based) I’ve launched in my career, and with it, I’m more committed than ever to helping ecommerce entrepreneurs succeed. Through our podcast, weekly newsletter, webinars, and soon-to-launch courses and digital products, we’re focused on providing actionable insights and strategies for building and growing a thriving online business.

I know firsthand that entrepreneurship isn’t easy. Every venture requires resilience, creativity, and a willingness to adapt. That’s why I approach this journey with humility and a serve-first mindset—because at the heart of every successful business is a deep understanding of the customer. Keeping your focus on the person at the other end of the transaction, the content, or the product you’re delivering gives you a north star—a guiding force that dramatically improves your chances of success.

As Greg Rollett, Director of Growth at The Grommet, shared on a recent episode of The Ecommerce Revolution Podcast:

“Someone out there is counting on you to be the best version of yourself so they can get what they need.”

That perspective is a game-changer. When you show up for your customers, deliver value, and stay focused on serving them, success becomes a byproduct of that commitment.

Podcast Spotlight: Ecommerce Marketplaces, Your Path To Success?

🎧 Listen or Watch Now

In this episode of The Ecommerce Revolution Podcast, we explore the dynamic world of ecommerce marketplaces with expert Cherie Edilson. From her journey of launching a local online marketplace to the broader implications of ecommerce strategies, we discuss the importance of consumer convenience, the rise of niche marketplaces, and the essential steps for emerging entrepreneurs to succeed in the online selling landscape.