What’s Causing a Drop in Your Average Order Value?

Have you noticed your Average Order Value (AOV) slowly slipping and you’re not quite sure why? You’re not alone. AOV is one of those metrics that quietly affects your bottom line, and when it starts to dip, it can signal deeper issues in your online store’s customer journey, product strategy, or user experience.

Before you hit the panic button, let’s list down what actually causes a drop in AOV and what you can do to fix it.

What Is Average Order Value (AOV)?

In simple terms, AOV measures the average dollar amount spent each time a customer places an order on your site.
It’s calculated like this:

AOV = Total Revenue ÷ Number of Orders

It’s a crucial metric because it helps you understand customer spending habits, evaluate marketing ROI, and guide pricing or promotional strategies. If your AOV drops, you’re essentially doing more work for less return.

Common Causes of a Decline in AOV

1) Cross-Sells and Upsells Aren’t Working Like They Used To

You might have all the right upsell mechanics in place (e.g. bundles, “frequently bought together” suggestions, even post-checkout add-ons), but if they’re not delivering results, the issue might be visibility or relevance. 

Site layout changes or outdated recommendation logic can lead to these offers being overlooked entirely. And if they’re not well-matched to the customer’s intent, they can feel more like friction than added value.

To improve performance, consider testing different strategies such as:

• Placing upsell suggestions earlier in the journey—like on product or cart pages
• Bundling items based on actual purchase behavior, not just category
• Highlighting social proof (e.g. “most popular combination”)
• Adding urgency by showing low stock or limited-time bundles

2) Discounts Are Cannibalising Full-Price Sales

Discounting can be a powerful tool for driving traffic, but it’s a double-edged sword. When promotions become too frequent or predictable, customers begin to expect them—and may even delay purchases until a discount is available. Over time, this chips away at your average order value, especially if buyers start using coupons to make smaller, less profitable purchases.

To encourage higher spending while preserving brand value, try:

• Replacing blanket discounts with tiered incentives (e.g. “Spend $100, save $15”)
• Offering free shipping thresholds just above your current AOV
• Promoting bundled value instead of individual discounts
• Limit discount code stacking to prevent gaming the system

These changes protect full-price sales and help shape healthier spending habits among your customer base.

3) Your Product Mix Has Shifted

Sometimes, the reason for a dip in order value isn’t behavioral—it’s structural. If your high-value products are out of stock or difficult to find, customers will naturally gravitate toward lower-priced alternatives. Even subtle shifts in product visibility can impact what people end up buying.

If you’ve recently introduced more entry-level products or low-cost items, they might be skewing your averages downward, even if conversions are steady. Rebalancing your merchandising strategy by spotlighting premium products more prominently can help guide customers toward higher-value purchases.

4) Mobile UX Is Sabotaging Larger Orders

Mobile traffic has overtaken desktop traffic for many online stores, but it doesn’t always translate to higher revenue. Smaller screens, more distractions, and a less immersive shopping experience can lead to smaller, quicker purchases—or missed upsell opportunities altogether.

Improving the mobile experience can make a significant difference in average order value. Focus on:

• Optimising page speed for fast load times
• Streamlining navigation with intuitive menus and clear CTAs
• Implementing quick-add buttons or sticky “Add to Cart” features
• Simplifying forms and auto-filling wherever possible
• Making checkout easy to complete with one hand

5) Your Checkout Is Causing Friction

Checkout is often where high-value orders fall apart. Whether it’s due to unexpected shipping fees, long forms, or limited payment options, small pain points can prompt customers to reduce their cart size or abandon their purchase altogether.

Reducing friction starts with identifying where users are dropping off. Tools like session replays or heatmaps can help uncover bottlenecks. Streamlining the process, offering transparent pricing, and providing flexible payment options can go a long way in supporting higher-value checkouts.

6) Customer Behaviour Has Changed

Sometimes, it’s not your store that’s changed—it’s your customers. Economic uncertainty, shifts in seasonal demand, or even broader lifestyle trends can influence how much people are willing to spend in a single transaction.

Understanding what’s behind these changes can help you adapt your strategy. Whether it’s through customer surveys or analytics segmentation, identifying new patterns in purchasing behavior allows you to reposition your offerings, refine your messaging, and align promotions with what your audience actually values right now.

7) You’re Not Personalising Enough

Serving the same homepage and promotions to every visitor—whether they’re a first-time shopper or a loyal customer—misses key opportunities to grow order value.

Personalisation doesn’t have to be overly complex to be effective. Tailoring your messaging, product suggestions, or email campaigns based on customer segments can significantly increase engagement and spending. 

Even simple changes, like showing exclusive bundles to returning visitors or highlighting relevant upgrades, can make the shopping experience feel more intentional and rewarding.

8) There’s a Tracking Glitch

It’s worth remembering that not all AOV drops are real. If your analytics configuration has changed recently—especially following a website redesign or CMS update—it’s possible that your tracking is misfiring. Issues like untagged pages, misattributed conversions, or duplicate revenue events can skew your data.

Cross-referencing your analytics platform with your actual order data can quickly flag discrepancies. Ensuring your eCommerce tracking is working as intended is the first step before making any strategic changes based on potentially faulty numbers.

How to Spot the Problem: Data First

Start by diving into your analytics. Here’s what to look at:

• AOV over time: When did the drop start?
• By device: Is it happening more on mobile?
• By traffic source: Is it tied to a specific campaign or channel?
• By product category: Are customers shifting their interests?

From there, you can pinpoint which area needs attention—pricing, UX, product availability, or targeting.

Want to Increase Your AOV? Start Here

Once you identify what’s holding AOV back, here are a few ways to boost it again:

• Offer bundles and kits for commonly bought-together items
• Set free shipping thresholds just above your current AOV
• Use dynamic upsells at checkout (not random ones)
• Incentivise loyalty: exclusive discounts, rewards or early access
• Test pricing psychology: charm pricing, anchor pricing, etc.

Struggling with Low AOV? Your Website Might Be Holding You Back

Your average order value is heavily shaped by your website design. Everything from product layout and upsell placement to mobile experience and checkout flow can either lift or limit how much customers spend.

Need help diagnosing or improving your store’s performance? At Chromatix, we live and breathe website conversion. 

If your AOV is slipping and you’re not sure what steps to take, our web design agency in Melbourne can help identify the loopholes in your website and optimise it to get those numbers climbing again.

Book a free consultation and find out how your website could be working harder for your business.