Why Increasing Average Order Value Before Christmas Matters

Instead of selling to more people, what if you could leverage strategies to increase the average order value this Christmas?

With Christmas just around the corner and shoppers making last-minute purchases, focusing on how to increase average order value during this time can be your secret weapon to higher profits. The holiday season sees a surge in consumer spending as shoppers eagerly search for gifts, making it the perfect time to focus on encouraging bigger transaction values.

A higher AOV reduces the reliance on acquiring new customers, which is often expensive, and instead captures more value from existing ones. Additionally, operating costs—logistics, advertising, and promotions—are higher during the holidays, so increasing AOV offsets these expenses. By emphasizing tactics that encourage larger baskets, businesses capitalize on the increased willingness to spend that comes with the festive season, ensuring they make the most of this critical sales period.

Top Strategies to Increase Average Order Value Before Christmas

Ready to turn $50 carts into $100 carts this Christmas? These strategies can help increase your average order value.

1. Offer Tiered Discounts

Tiered discounts such as “Spend $50, get 10% off; spend $100, get 20% off” work wonders to encourage customers to add more items to their cart. It appeals directly to their desire for savings and pushes them closer to the next spending milestone.

2. Bundle Complementary Products into Gift Sets

Create curated gift bundles that package related products together, featuring a slightly reduced price compared to purchasing items individually. For example, bundle skincare with a holiday-themed toiletry bag or pair seasonal candles together. Such bundles enhance value perception and cater to shoppers seeking convenient gift solutions.

3. Add Upsells and Cross-Sells at Checkout

Intelligently suggest premium product upgrades or complementary add-ons when a customer is about to complete their purchase. For instance, recommend a leather cover with a journal purchase or offer holiday-themed wrapping. Personalized cross-sells create opportunities to bump up the order value effortlessly.

4. Use Free Shipping Thresholds to Increase Cart Sizes

Free shipping remains one of the most compelling incentives during the holiday season. Set thresholds such as “Free shipping for orders over $75” to nudge customers toward spending more. Position this promotion prominently across your site for maximum visibility.

5. Incorporate Holiday-Themed Packaging Upgrades

Offer holiday-specific packaging as an additional incentive or tier threshold reward. For example, spend $50 for complimentary festive wrapping. This appeals to time-pressed gift-givers and adds emotional charm to the shop-and-spend experience.

By implementing these strategies, businesses tap directly into the holiday shopping psyche, enhancing both revenue and customer satisfaction.

How Can These Tactics Boost Your Christmas Sales?

Picture your customers eagerly spending more and perceiving incredible value, resulting in an increase in average order value during Christmas. That’s how these strategies work.

  • Tiered discounts: Enable higher cart values by incentivizing shoppers to cross price thresholds.

  • Product bundling: Simplifies gift-buying decisions while increasing revenue per transaction.

  • Upselling and cross-selling: Boosts average basket sizes by helping customers see the value in upgrading or adding items.

  • Free shipping thresholds: Encourages higher spending to “unlock” this popular offer, raising AOV for minimal additional cost.

  • Festive packaging upgrades: Adds appeal for customers looking to save time while spending more.

These tactics align with holiday consumer behavior and build loyalty by offering perceived value-driven transactions.

Why Is Focusing on AOV Crucial for Christmas Sales Success?

With customer spending at an all-time high during Christmas, missing the chance to increase their spend could cost you big.

Focusing on AOV is a strategic move for businesses aiming to make the most out of the annual Christmas shopping surge. Increasing AOV creates a ripple effect: one that not only boosts profitability but also improves advertising efficiency by maximizing revenue per customer.

The cost of acquiring new shoppers is generally higher during the festive season due to strong competition. Instead of focusing solely on customer acquisition, higher AOV allows businesses to enjoy significant returns on the customers already at their virtual or physical stores. By capitalizing on the limited holiday window—with curated gift bundles, upsell opportunities, and thoughtful offers—businesses can maximize seasonal profits while fostering better customer satisfaction.

FAQ: Addressing Common Concerns About Increasing AOV for Christmas

Still have questions about boosting AOV? We’ve got answers to get you holiday-ready.

  • What are the best methods to increase average order value during the Christmas season? Use tailored discounts, product bundling, upselling at checkout, thresholds for free shipping, and festive upgrades to encourage customers to spend more per transaction.

  • Can I increase average order value for Christmas sales? Yes! Curate gift sets, implement free shipping thresholds, and market add-ons like gift wrapping or stocking stuffers to capitalize on the holiday shopping mindset.

  • How do discounts affect AOV? Discounts tied to spending minimums positively influence AOV. Tiered approaches like “Save 20% when you spend $100” incentivize customers to increase their cart value to hit savings milestones.

Start Planning Your AOV Strategy Today

Shoppers won’t wait—and neither should you. The earlier you plan, the bigger your Christmas spike in sales.

With just a few actionable changes to your sales strategy, you can turn Christmas shoppers into high-value customers. By focusing on tactics that align with the festive spirit, watch these strategies effectively increase average order value and boost your profits this Christmas. With these tools in hand, you’re ready to make this your most profitable Christmas season yet.