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Why You Should Implement Minimum Order Values on Shopify

Maybe you are new to the e-commerce business or you just want to learn about the advantages and disadvantages of e-commerce. Let’s talk about the benefits and drawbacks of having a minimum order value and how to implement it in your online store.

Minimum order value: advantages

One of the most important benefits of setting a minimum order value is that the average shopping cart value increases. It means that many customers will increase the size of their order to meet the minimum order value. This will result in more sales for your shop. 

If a consumer has added items to their shopping cart below the minimum purchase amount, you may use upselling and cross-selling strategies to offer them relevant products. 

You might display similar pillowcases or sheets in a pop-up menu or below the shopping basket if a customer orders a blanket from your store. This is known as cross-selling.

The minimum order amount also simplifies logistics and delivery. Due to this, tiny online stores often impose a general minimum order value. 

By doing this, you and your team will only handle orders worth the time you and your team.

Minimum order values: disadvantages

It is possible that a minimum order value could discourage potential customers. 

Some online visitors may leave the page when they learn that your business requires payment.  It is unlikely that customers will purchase any products from you if they think the fixed price is excessive. In a similar situation, buyers may only want to order a particular product after searching specifically for it. 

Customers will likely switch to your competitors if you do not insist on a set shopping basket value.

Indeed, other factors contribute to higher shopping cart abandonment rates, such as a lengthy checkout process. Consequently, you should pay attention if these figures change significantly after setting a minimum order amount.

Minimum Order Values Right for Your Shopify Store?

You need to decide whether a Shopify calculator app should be implemented in your online store. Is it critical for you to get only relevant orders with a high-profit margin for your business? 

Orders must be limited in your Shopify shop to a certain number of products or a certain amount for the basket. Some supermarkets and food delivery services, for example, will not deliver orders unless the total value of the order is at least $25. 

The problem with this restriction is that it is likely to prevent some customers from ever placing an order with you in the first place. In the long run, the company might be better off accepting smaller orders. Ultimately, this leads to increased customer satisfaction, and those customers who have previously placed orders with you will do so again.

The ShopFox Extension for Shopify

The quantity supplied should not exceed the average order value of your online store. 

You shouldn’t require a minimum order value that is greater than £30 in your store, because the average order value is around £30. When it comes to free delivery, most retailers offer it for orders worth at least $25.

Your online store should set a minimum order value based on various variables. Detailed analysis and calculation should be performed. The odds of you losing a few clients are slim, but you might see an increase in your average order value, which results in a successful business.

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