A business’s profitability is not just based on the number of products sold but also on the profit accumulated. Every order should have a low acquisition cost and high revenue. When most sellers want to increase profits, their first instinct is to come up with ways of finding new customers. But what if you increase the order value?

According to research by Gartner Group, businesses can increase their conversions by 70% if they sell to an existing customer instead of a new one. It also translates to the cost of conversion. You will spend more when you sell to a new customer than an existing customer. How then can you increase the value of each order you send out? In this article, we review measures FMCG can take to make every order more profitable.

What is order value?

The average order is the amount of money spent every time a customer places an order. Order value is a crucial metric because the higher the order value, the more revenue you earn. That translates to more revenue without having to increase the market share. Here is how you can get the order value:

Average order value = Total Revenue/ Total number of orders

 By optimizing your order value, you manage your cost and grow your business. Let’s look at the strategies you can use to increase your order value and in turn, grow your revenue.

6 Strategies to make every order more profitable

Cross-selling your products

Cross-selling involves offering related or complementary products to a customer. By cross-selling, your customers have a one-stop-shop for all the products they require. For instance, if you sell soda, have cakes and biscuits in the nearby aisle. According to Amazon, cross-selling will generate 35% more in profits. The main advantages of cross-selling are:

  • Increase your order size, and that will also increase revenue and reduce the shipping cost.
  • The lifetime value of your customers will increase.
  • Shipping costs are reduced if you offer a flat rate shipping fee model


Upselling is a sales technique that involves offering your customers an upgrade for their purchases. You can upsell by recommending a product that has better features, specifications, and more volume. However, the product is usually more expensive.

It’s essential that you first develop a relationship with your customers and understand their needs. A robust bond and a good understanding will make upselling easier. Otherwise, you’ll quickly put off the client if you try to upsell when you have no idea what they need.

Use the minimum order threshold while shipping.

The minimum order threshold technique requires you to increase the minimum order value to qualify for free shipping. If a customer is shopping and nearing the threshold, they will most likely add a product to earn free shipping.

Offer your customer limited-time promotions.

Customers don’t want to miss a great deal expiring soon. Offer discount codes that last a short time. Urgency makes customers want to add more.

Create a personalized experience that suits your customers

Using data, you can create a more personalized experience and increase your order value. Using analytics tools, you can create campaigns that resonate with your customers. Campaigns that are specific and target your current customers are likely to yield more sales.

Offer bundle deals and bulk purchase options

Put products that go together in one aisle and make sure that the pricing of the bundle increases the order value of each product. This encourages customers to buy the products as bundles.

In addition, you can offer slight discounts if a customer purchases more than one or two items. Customers will look at savings they will make if they buy in bulk.

In today’s highly competitive business world, the margin is everything and that makes it essential to optimize every sale. You need to analyze your business and figure out how to extract more benefits from every order. Contact our team of experts for better ways to structure your products and increase the order value. We will work with you to increase the value of every order that goes out!

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One reply on “6 FMCG Strategies to Make Every Order More Profitable”

  • April 29, 2022 at 9:17 am

    I went over this website and I conceive you have a lot of superb information, saved to bookmarks (:.

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