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Perhaps you’re new to e-commerce or just want to learn more about the advantages and disadvantages of this method. We’ll go through the benefits and drawbacks of having a minimum order value, as well as some pointers on how to implement this technique in your online store.

Advantages of Minimum Order Values

The average rise in the shopping cart value is one of the most important benefits of establishing a minimum order value. To put it another way, many customers will increase the size of their order in order to fulfil the minimum order value. As a result, your shop will create more sales. 

You may use upselling and cross-selling strategies to propose relevant goods to consumers who have added items to their shopping cart but are still below the minimum purchase amount. 

If a customer orders a blanket from your store, you might display similar pillow cases or sheets in a pop-up or below the shopping basket. Cross-selling is the term for this technique.

Another advantage of having a minimum order amount is that it makes logistics and delivery easier. As a result, tiny online stores in particular, frequently elect to impose a general minimum order value (e.g. orders can only be placed with a shopping cart value of £10 or more). 

This guarantees that only those orders are handled that are worth your and your team’s time.

Disadvantages of Minimum Order Values

A minimum order value, as you might expect, might be a disincentive to potential clients. 

Some online visitors will quit the page as soon as they learn that ordering from your business requires a particular amount of money. Customers who believe the fixed value is too high are unlikely to purchase anything from you. A similar issue might develop when buyers have specifically looked for a product and only want to order that product. 

If customers do not demand a set shopping basket value, it is likely that they would like to switch to your competitors, leading you with a loss of a potential sale.

Of course, there are additional factors that contribute to higher shopping cart abandonment, such as a sluggish checkout process. As a result, if these figures change substantially after you set a minimum order amount on your website, you should pay attention.

Are Minimum Order Values Right for Your Shopify Store?

Finally, you must determine whether or not to implement a minimum order value in your online store. Is it important for you to get only relevant orders with a high profit margin? 

Then in your Shopify shop, you should limit orders to a set shopping basket value or a certain number of goods. Some food/grocery delivery services, for example, only deliver orders worth at least £25. 

On the one hand, this restriction is likely to deter some customers from placing an order with you in the first place. Accepting smaller orders, on the other hand, might be beneficial in the long run. Customer satisfaction rises and after all, customers who have previously placed orders with you will gladly do so again.

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Make sure the quantity supplied isn’t more than your online store’s average order value. 

If the average order value in your shop is roughly £30, your minimum order value should not be more than £30.  To give you an idea, most online retailers that offer free delivery do so for orders worth more than £20 or £25.

You must decide on a minimum order value for your online store depending on a variety of variables. Take time, examine your figures, and perform the calculations. Although you may lose some clients, there is a chance that your average order value will increase and your firm will become more successful.

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