TikTok Shop Killing AOV
🚀 How TikTok is killing your AOV and how you can increase it
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🚩TikTok Shop Killing Your AOV
📈 Q1 2024 Insights: Google Shopping and Text Ads Dynamics
🌐 Q1 2024 Analysis for Snapchat and Meta
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TIKTOK
🚩TikTok Shop Killing Your AOV
Insights from Jonathan Snow
While TikTok Shop offers high conversion rates, its Average Order Value (AOV) significantly lags behind that of direct-to-consumer (DTC) websites. Several key factors contribute to this discrepancy, impacting the potential revenue per transaction on the platform.
Key Challenges Impacting AOV on TikTok Shop:
Capped Discounts Limiting Cart Value:
Issue: Discounts on TikTok Shop are capped (e.g., 50% off up to a $20 discount), which does not encourage customers to add more items to their cart.
Impact: Shoppers are not motivated to increase their cart sizes beyond the discount cap, resulting in a lower AOV.
Suboptimal Placement of Upsells and Cross-sells:
Issue: Additional purchase options like upsells and cross-sells are positioned below the fold and beneath the checkout button, making them less visible and accessible to users.<