Comprehensive guide: how to increase Average Order Value (AOV) through effective upselling

If you’re a D2C brand who is able to get 1,000 customers every day, there are three simple (not easy) ways for you to double your revenue. 

• Get 2,000 customers instead. 
• Get customers who are already on your website, to buy twice as often. 
• Get these 1,000 customers to spend twice as much money on every single order.

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In this guide, we will explore going down the third road. 

That is, increasing average order value (AOV) to increase revenue.

There are many ways to do this, but one of tried and tested ways of doing this is by upselling. And listen, this is not a reinvention of the wheel. Nor is it a boiling of the ocean.

It is what supermarkets used to do. Or still do, perhaps. We’ve not been to one in years. 

From putting toothbrushes next to the toothpaste; to stocking candy at the checkout counter; you’ve seen a whole lot of these clever strategies in action. It’s all upselling—all tapping straight into the consumer’s psychology.

It is interesting to note that the shopper wants to spend as little time and money as possible at a supermarket; while the supermarket wants them to spend as much of both as possible. And the supermarket usually wins – thanks in part to these upselling tactics.

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Understanding AOV: The Foundation of E-Commerce Success

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Definition of AOV

Average Order Value (AOV) is the average amount spent per order over a given period. It is calculated as:

AOV = (Total Revenue in Given Time) / (Number of Orders in the Same Time)

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Note: There are various ways to calculate your Average Order Value, but the formula presented above is the most widely used. Choose a formula that works best for you and focus your energy on boosting the value itself, rather than overthinking the formula.

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Significance of AOV

Impact on overall revenue 

A small boost in your AOV can make a big difference. For example, increasing it from Rs. 5,000 to Rs. 5,250 may seem minor, but across thousands of orders, it adds up fast—meaning more profit without needing more customers. 

The best part? Simple improvements like suggesting related products, offering bundles, or setting free shipping thresholds can help customers spend a bit more on each store visit.

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Role in optimizing gross margins and net profit

Average order values play a crucial role in e-commerce economics. Every e-commerce order costs money to fulfill, but servicing a ₹10,000 order usually doesn’t cost much more than it costs to service a ₹1,000 order. Not to mention, your brand is more likely to be cashflow positive when you fulfil more of these higher-ticket orders. It’s in your best interest, therefore, to increase your average order value.

An informed upselling strategy can help you increase your Average Order Value (AOV).

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Why increase your AOV

To be clear, the destination is to increase the lifetime value of your customers; a higher AOV is just the means to get there. And it isn’t the only way to increase the lifetime value of your customers. To be more specific, 

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There are three ways a brand can boost LTV:

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1. This can be done by raising AOV

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2.  Improving the percentage of returning customers

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3. By boosting the repeat rate

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Out of these options, increasing AOV has the least amount of friction associated, and is therefore seen by many D2C founders as the go-to solve to their profitability woes.

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Impact of upselling in D2C

A real example from a health and wellness brand

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Another example 

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Upselling vs. Cross-selling in D2C

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Before we go into further detail, it is important to acknowledge the distinction between upselling and cross selling. Let’s start with the universally accepted meaning and definition.

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Upselling

Selling many copies of the same product or a bigger version of the selected product.

Cross selling

Selling a related (directly or indirectly) product based on the selected cart items.

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Upselling is selling many copies of the same product or a bigger version of the selected product.

Cross selling is selling a related (directly or indirectly) product based on the selected cart items.

That’s the difference.

What do they have in common then?

You can do both with Shopflo’s end-to-end e-commerce solution.

CTA banner: Increase Your AOV with Shopflo’s upsell

Note: it is worth noting that many D2C brands use the word upsell as an umbrella term which includes both cross-selling and upselling and we will treat it as such in the rest of the article.

Strategies to Increase AOV By Upselling

One-Click Upsell

Seamlessly present customers with a higher-value item or add-on just before they complete their purchase. Grocery brands use this incredibly well by adding attractive discounts only when a user selects 2+ items of the same product.

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How Swiggy nudges users to increase their cart size through one-click upsells

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Product Bundling

Offer a curated set of complementary items that make logical sense, you would be able to see these in action if you look at the ‘Frequently bought together’ tab on Amazon. 

Here, the upsell is less of a sales effort and more of a reminder. For instance, bundle a phone case with a tampered glass if you’re a mobile accessory brand. Or a toothpaste with a toothbrush if you’re a grocery store. This not only raises AOV but also enhances the overall shopping experience by providing a convenient, smooth shopping experience.

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Tiered Pricing

Present customers with “good,” “better,” and “best” options – this simple visual prompt helps buyers see the value in going for a premium package. A lot of brands also tap into consumer psychology to nudge consumers into choosing the higher priced offering. Also see: anchoring bias.

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Limited-Time Offers

Introducing a sense of urgency into the shopping experience would incentivize a customer to purchase sooner rather than putting it off altogether. Adding in time-sensitive discounts or special upgrades towards the end of their purchase experience . A countdown timer or “24-hour only” deal can motivate buyers to act fast. Urgency can tip the scales, turning a standard purchase into a more profitable one.

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Post-Purchase Upselling

Don’t overlook opportunities to increase value even after the initial sale. Offer customers add-ons or complementary items via follow-up emails or package inserts. Post-purchase upselling turns satisfied buyers into repeat customers and boosts your revenue over time. Even ‘traditional D2C brands’ like the Good American prompt use post-purchase upselling while their customer’s brain chemistry is still riding the high of shopping. 

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Best Practices for Effective Upselling

1. Keep It Relevant and Aligned

Tailor upsell offers to match the customer’s purchase intent and shopping history. Irrelevant suggestions can backfire quickly.

2. Focus on Value, Not Just Products

Highlight the benefits of the upsell, such as savings or extra features. Use clear messaging like “You might also like” or “Save 20% when you bundle.”

3. Design Matters

Use high-quality visuals and well-designed badges to make upsells stand out. Shopflo’s UX-driven upsell strips help 700+ Indian D2C brands boost AOV with strategic precision.

With Shopflo’s upsell, you can drive urgency with limited-time offers or countdowns. You can also sprinkle in social proof, like reviews or ratings, to boost trust and credibility.

4. Strategically Place Your Upsells

Introduce upsells at smart points like the cart, checkout, or post-purchase emails. Right place, right time can make a whole world of difference.

5. Test and Refine Regularly

A/B test different approaches to see what resonates best—placement, wording, visuals—then refine for better results. Shopflo lets D2C brands A/B test everything on their cart and checkout, including upsells.

6. Keep It Clear and Simple

Avoid overloading customers with too much information or too many choices. Make the upsell straightforward and easy to understand.

7. Numbers matter

When bundling or upselling, consider how the total cart value impacts shopper behavior. For example, bundling a Rs. 750 pot with a Rs. 249 pan keeps the total at Rs. 999, while a Rs. 300 pan pushes it to Rs. 1050. Even small differences like crossing the Rs. 1000 mark can influence emotional decisions, so pick your upsell placements strategically.

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Common pitfalls to avoid in your Upsell strategy

1. Too Many Choices, Too Little Clarity

Offering too many upsell options leads to confusion. Stick to one or two clear and relevant offers.

2. Irrelevant or Poorly Timed Offers

Misaligned upsells or suggesting upgrades at the wrong moment can disrupt the customer journey. Timing is everything.

3. Overlooking Mobile Experience

Ensure upsells are mobile-friendly, with fast loading and easy-to-click buttons. Mobile shoppers won’t wait around.

4. Being Pushy or Intrusive

Aggressive tactics like repeated pop-ups can annoy customers and cause cart abandonment. Keep it respectful.

5. Neglecting Data and Insights

Regularly track metrics like conversion rates and upsell performance. Without data, you’re just guessing.

6. Missing Post-Purchase Opportunities

Use follow-up emails or thank-you pages to suggest add-ons. Upselling doesn’t have to stop at checkout.

7. Lack of Transparency

Clearly outline additional costs or terms to avoid confusion and maintain trust. No surprises, just clarity.

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TL;DR - All you need to know about upsells

Upselling is a tried-and-tested way to boost your Average Order Value (AOV) and drive revenue growth. It works for every brand, but it works differently for each brand.

Depending on your industry, geography, and your customer’s persona, you need to adopt an upselling strategy that grows your revenue while still delivering customer delight.

From bundling complementary products to using time-sensitive offers, a well-planned upselling strategy can tap into customer psychology, encouraging them to spend more. 

That said, the key to effective upselling lies in precision and balance. Keep offers relevant, strategic, and simple. A badly-done upsell can frustrate customers and make you seem money-hungry.

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How Shopflo can help you get started with upselling 

Shopflo’s comprehensive e-commerce solution is built to help D2C brands boost their Average Order Value (AOV) without compromising conversion rates. With features like intuitive, UX-driven upsell strips, robust A/B testing capabilities, and seamless cart and checkout experiences, Shopflo empowers over 700 Indian D2C brands to achieve their full potential.

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Whether you’re an emerging e-commerce startup or a well-established D2C brand, upselling isn’t just a sales tactic—when done well, it has the ability to impact the color of your next financial report.

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