Average Order Value (“AOV”), is simply calculated by dividing the value of orders by the number of orders over a period of time. This number is one of the most important e-commerce KPIs. Let’s take a deeper look at how size recommendations can influence your AOV.
There are many strategies to increase AOV, like extending your product offering, increasing product prices, creating product bundles, extending incentives for additional cart value, amongst many others. Several of the strategies commonly used by retailers to increase an order’s overall value are complicated and can take months to optimize. However, size recommendation is one of the easiest strategies to implement and often times overlooked as a major influencer to AOV.
For apparel e-commerce retailers, we see that size confusion is one of the largest factors leading to reduced conversions and an overall lower AOV. When you begin to think like a consumer, it’s easy to see how this stems from a lack of shopper confidence when they get to the point of selecting the best fitting size.
How Does Sizing Impact AOV?
With today’s size selection tools, like size charts, model dimensions, fit reviews, etc., shoppers are forced to “guess” their best fitting size. It’s no secret that sizing varies from brand to brand, and especially when shopping on an online only format with a new brand size is a gamble. This leads to a consumer size sampling which consists of them purchasing several sizes with the intent to return in order to gain a sense of confidence in fit. Inherently, this reduces your AOV and increases potential spikes in returns for size and fit purposes. Unfortunately, this shopping behavior is completely normal, but ends up hurting your brand’s profitability and sustainability. The good news is that it doesn’t need to be this way.
With accurate sizing tools like the WAIR Fit Advisor shopper’s are able to receive a recommended best fitting size based off of their individual body dimensions. Our technology ensures that size recommendations align with the way your design team intended each garment to fit. An accurate sizing tool gives your shoppers confidence when selecting their size, leading to less size sampling, and helps your new shoppers act like returning shoppers…whereby increasing AOV.