As a retailer, one of your primary goals may be to increase online retail sales.
And one of the easiest ways to do that is to increase basket size. To help you stay competitive in an ever-changing market and improve your bottom line every quarter, we’re sharing seven surefire ways to increase basket size
1. Focus on Cross-Selling & Upselling
As any retailer knows, the key to increasing sales is to encourage customers to buy more. And there's no denying that cross-selling and up-selling are effective ways to boost basket size.
According to Sucharita Kodali, these two techniques are responsible for 10-30% of eCommerce revenues.
After all, if customers are already in the store or browsing your website, they're clearly interested in what you have to
Cross-Selling
Cross-selling is one of the simplest and most effective ways to increase basket size and boost sales. When done right, cross-selling involves offering customers complementary or related products that they might be interested in.
And best of all, cross-selling is relatively easy to do. A simple "Do you need X to go with your purchase of Y?" can often be enough to encourage customers to add another item to their purchase.
For example, when a shopper searches for a cot bed, Tony Kealys recommends sheets and mattresses
Up-Selling
Upselling is a popular sales tactic that involves persuading a customer to buy a more expensive product or upgrade their purchase. While it may seem like a straightforward way to increase online sales, upselling is actually an important part of the customer experience.
When done correctly, it can help customers find the products that best meet their needs, which can lead to increased customer satisfaction and loyalty. Done poorly, however, upselling can come across as pushy and insincere.
This strategy is often used in the hotel and airline industry, where customers are offered the chance to upgrade to a better room or seat for an additional fee. To expand on our cross-selling example, when a customer is looking at a cot bed, Tony Kealys might offer them the option to upgrade to a luxury cot bed with a higher price tag.
But instead of trying to build it yourself, why not let Shopbox’s Smart Merchandising feature do it automatically for you. Our AI-driven platform already has this intelligence built in leading to a 20-30% increase in AOV.
Cross-selling and upselling are quick and easy ways to increase basket size and revenues when done right. Not to mention that both also reduce friction and improve the shopping experience by suggesting relevant products for your online visitors in real-time.
2. Create Bundles of Complementary Products
Building on the cross-sell and upsell ideas, creating bundles of complementary products is a great way to boost sales and generate value for your customers.
By offering a bundle of products that work well together, you make it easy for customers to get everything they need in one purchase.
Furthermore, studies suggest that bundling is especially effective when you frame it as a "free gift". Not only does this save them time and hassle, but it also gives them a sense of confidence that they are getting a complete solution from a trusted source.
By bundling together products that complement each other, you can create a package worth more than the sum of its parts. For example, if you sell coffee and coffee filters, you could bundle them together and offer a discount.
It's simple, fast and convenient — everything that today's shopper is looking for.
3. Trigger Urgency
Have you ever gone to a website, added items to your cart, and left without completing the purchase? Most of us have — the average cart abandonment rate is just under 70%.
And it can be frustrating for both the customer and the business. But there's no need to despair.
Creating a sense of urgency is one way to increase the likelihood that a customer will complete a purchase. There are a few ways to do this, but the most effective are:
- abandoned cart emails
- cart timers
- limited-time offers
A sense of urgency is a powerful motivator. When a customer thinks they're getting a fantastic bargain that requires immediate action, they are encouraged to buy since they have no time to think about the purchase decision.
It simply works - no one wants to miss out on a great deal.
4. Create a Sense of Scarcity
Have you ever been to a store and seen a sign that says "while supplies last" or "only XX left"? These signs are designed to increase the urgency to purchase and encourage customers to buy more.
They work by preying on our fear of missing out - if we see that there's only a limited quantity of something, we're more likely to buy it before it runs out. By adding disclaimers like “When it’s gone, it’s gone”, you're letting people know that the product they're eyeing is either limited in quantity or will only be available at this price for a specific period of time.
This technique can effectively increase basket size, but it's essential to use it sparingly. If everything in your store has a disclaimer attached, shoppers will tune out the message and it will lose its impact. Instead, save it for items like seasonal products with a limited shelf life that you really need to move quickly.
5. Engage Shoppers
Letting shoppers indulge in some retail therapy is one of the best ways to increase basket size. Engaging shoppers by providing a fun, interactive, and hyper-personalised experience will make them want to spend more time (and money) in your store. And that means they’re less likely to explore a competitor’s website and get deeper into your store instead.
By showing them more products and sparking ideas, you can learn about their shopping journey and adapt accordingly. Or better yet, let Shopbox do the work for you. When shoppers use Shopbox, they look at 3x more products and spend 4x more time on your site, translating into higher conversion rates and AOV.
It's the perfect way to increase basket size without putting any extra strain on your team. And with Shopbox, there are no limits to what you can show your shoppers.
6. Offer Free Shipping
Many online shoppers are less likely to complete a purchase if faced with shipping costs at checkout. Offering free shipping, either with a minimum purchase amount or during promotional periods, can increase basket size and order value.
In fact, according to an Inmar Survey, 78% of customers are willing to spend more to qualify for free shipping.
Of course, free shipping isn't always feasible, especially for small businesses with slim margins. However, one way to make free shipping work is to offer it only when customers reach a specific order value.
This way, businesses can still encourage larger orders without eating into their profits too much. For customers, this offers an incentive to spend more in order to save on shipping costs. Ultimately, it's a win-win for both businesses and shoppers.
7. Use Product Recommendations
Buyers today are more sophisticated than ever before. They know what they want, and they expect to find it in one place. And contextual AI-driven recommendations are a great way to increase basket size and show shoppers more relevant and personalised products.
By learning about the shopper and constantly adapting in real-time, you can show them products they are more likely to be interested in. This not only helps them find what they are looking for but also leaves them with a bigger basket.
Contextually aware recommendations also create a sense of trust and loyalty between shoppers and your store. They feel like you are looking out for their best interests and are more likely to come back in the future.
With so many benefits, it's clear that contextual AI-driven recommendations are the way of the future.
Increased Customer Satisfaction = Increased Profitability
Basket size is a critical metric for eCommerce stores. By understanding how to increase basket size, you can improve your store’s profitability and customer satisfaction.
The seven methods we’ve outlined are some of the most effective ways to boost your AOV and basket size. With a solid strategy and the help of AI, you can increase your online retail sales in no time.
We’d be happy to show you how our AI-driven platform can help increase your average basket size and drive more sales for your online store. Contact our team today to learn more about how Shopbox AI can help you achieve this goal.
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