There are two real schools of thought on improving average order value. The first camp focuses on direct, tactical ways to get customers to add more to their cart right now. The second camp argues that AOV is a potentially misleading metric, and the real focus should be on profitability and customer lifetime value.
Camp A: Increase the immediate transaction
This is the most common approach, and it’s all about tactical execution. Proponents like Kunle Campbell, host of the 2X eCommerce Podcast, focus on immediately actionable strategies like product bundling, tiered discounts, and upsells. On his show, he repeatedly emphasizes techniques like offering 15% off a $100 order and 25% off a $200 order. The logic is that this incentivizes customers who are already buying to spend a bit more to hit the next discount tier, which helps offset rising ad costs, especially during peak seasons.
Chase Clymer takes a similar line on Honest Ecommerce, framing AOV improvement as a simple equation: bundles, cross-sells, and upsells. The core idea is to make relevant offers at the right time. Felix Thea on eCommerce Fastlane breaks this down further into pre-purchase upsells on the product page, in-cart cross-sells, and even post-purchase offers. The goal is to maximize the value of every conversion by seamlessly presenting customers with items that complement what they're already buying. It’s a direct lever on revenue, and when done well, it can feel like a helpful service to the customer rather than an aggressive sales tactic.
Camp B: AOV is a vanity metric
This camp argues that a myopic focus on AOV can be dangerous. The clearest voice for this perspective is Nathan Perdriau, who puts it bluntly on eCommerce Australia in an episode titled "Why AOV means nothing." He argues that AOV is meaningless without the context of profit margin and Customer Lifetime Value (CLV). A high AOV number looks great in a report, but if you achieved it by offering discounts that erase your margin, you're just busy, not profitable. You might even be losing money on every "big" order.
This school of thought prioritizes data hygiene and a deeper understanding of your unit economics. On Honest Ecommerce, guest Kyle Lafond of American Provenance shared that his first step wasn't implementing upsells, but doing the backend work to figure out his breakeven AOV. Only after knowing the threshold where his business actually generates profit on an order could he make intelligent decisions about pricing, shipping, and promotions. Will Evans also discussed the prioritization of LTV over AOV on the Ecommerce Exits Podcast, suggesting a long-term view of customer relationships is more valuable than maximizing a single sale. This camp sees AOV not as the goal itself, but as one variable in the much more important equation of long-term, profitable growth.
So, who's right?
I land firmly in Camp B, but with the understanding that the tactics from Camp A are the tools you use to execute the strategy. Chasing a higher AOV without knowing your numbers is a recipe for disaster. You can easily create a scenario where your revenue goes up while your profit goes down. The strategic thinking of Camp B—focusing on profit, LTV, and your breakeven points—is the foundation. You have to do that work first.
Once you have that foundation, the tactics from Camp A become incredibly powerful. Upselling and cross-selling aren't just about squeezing more dollars out of a customer; they're about intelligently increasing the margin on each order after you've covered your fixed costs and CAC. The methods described by Kunle Campbell and Ecommerce Playbook are excellent, but only when applied with the financial discipline advocated by Nathan Perdriau.
Ultimately, your approach should depend on your store's stage. If you're just starting out, your first job is to follow Kyle Lafond's lead: figure out your breakeven AOV. From there, you can introduce simple mechanisms like a free shipping threshold or a basic product bundle to nudge customers toward profitability. If you're a more established brand with solid data, you can implement more sophisticated, personalized offers. But in either case, the goal isn't "a higher AOV." The goal is a healthier, more profitable business. The AOV is just one of the dials you can turn to help you get there.