When ad costs go up, there are only a few ways to keep growing. You can find cheaper customers, keep customers longer, or earn more from each order. Raising average order value is often the quickest of the three, because you are working with buyers who are already at checkout.
How to calculate average order value
The average order value formula is:
Average order value = total revenue divided by number of orders
If you made $500,000 from 10,000 orders last month, your average order value, or AOV, was $50. Calculate it for the same period every time, and look at new and returning customers separately. Returning customers often spend differently from first-time buyers.
Why average order value matters more for supplement brands
Most supplement brands pay to acquire a customer on the first order. A higher first order means you recover that cost sooner and have more room to bid on ads. It also gives you more cash to reinvest while you wait for repeat orders to come in.
The catch is that many brands try to raise AOV with deeper discounts. That can lift the order total while shrinking the margin on every sale. The goal is a bigger order that is also a better order.
Seven ways to increase average order value
1. Bundle products around a goal
Customers don't shop for ingredients. They shop for results like better sleep, more energy or healthier digestion. Group products that support the same goal into a single bundle with a clear name. A "Sleep Stack" is easier to say yes to than three separate bottles.
2. Sell a longer supply up front
Offer a 60 or 90 day supply next to the 30 day option. Many customers already plan to stick with a product long enough to judge it, so a longer supply fits how they think. It also gives the product more time to work before the next decision.
3. Use a free shipping threshold
Set free shipping a little above your current average order. Customers who are slightly short will often add a small item to get there. Check your numbers after a month to be sure the extra items cover the shipping cost.
4. Add a post-purchase upsell
A post-purchase upsell appears right after payment, before the thank you page. The customer has already said yes, so a relevant add-on they can accept with one click can lift order value without adding friction to checkout itself.
5. Recommend what actually goes together
Generic "you may also like" widgets tend to get ignored. Recommendations based on what customers really buy together, or on the goal they came for, feel helpful instead of pushy.
6. Offer a premium tier, not just a cheaper one
Most brands only add options below their main product. A premium option above it gives the most committed customers something more to buy. For some established brands, that premium option is a guided program, such as one-on-one coaching that helps the customer reach the goal the product supports. It is offered under the brand's own name by a specialist partner and turns a single order into a much bigger relationship. You can read how this works on our page for brands.
7. Test prices before you add discounts
Before adding another coupon, test whether customers notice a small price change at all. Many brands find that a modest increase on a strong product does not hurt conversion and adds more profit than any upsell.
How to measure the results
Track these numbers monthly, and compare new customers with returning customers:
- Average order value: total revenue divided by total orders
- Items per order: how many units the average order contains
- Upsell take rate: the share of customers who accept an add-on offer
- Gross margin per order: what you keep after product, shipping and discounts
Gross margin per order is the number to watch most. An AOV increase that lowers margin is not a win. A higher AOV also raises customer lifetime value, especially when combined with more repeat customers.
The bottom line
The best ways to increase average order value give customers more of what they already want: a complete solution to their goal, enough supply to see results, and a premium option when they are ready for more support. Done well, a higher AOV makes every ad dollar work harder.
Frequently asked questions
How do you calculate average order value?
Divide total revenue by the number of orders for the same period. For example, $500,000 in revenue from 10,000 orders is an average order value of $50.
What is a good average order value for a supplement brand?
It depends on your products and price points, so the most useful comparison is your own trend over time. Track it monthly and look at new and returning customers separately.
Do discounts increase average order value?
They can raise the order total, but they often reduce the profit on each order. Bundles, longer supplies, free shipping thresholds, post-purchase upsells and premium options usually raise order value while protecting margin.
