Why installments affect AOV
When a shopper is deciding what to buy, the full price is the number doing most of the work. It determines which products they consider, whether they go for the premium version, and whether they add anything else to their order. For high-ticket items in particular, that number can trigger sticker shock — the gut hesitation that makes a purchase feel like a bigger commitment than it needs to be.
Installments change that dynamic. When a shopper can spread the cost over time, the price becomes less of a barrier to trading up or adding on. They’re more likely to choose the better model, include an accessory, or go ahead with a purchase they’d have otherwise delayed.
On average, Splitit merchants see a 23% increase in average order value.
Strategies to increase AOV with installments
Promote the upgrade
Most product ranges have a good, better, best structure — a basic version for the budget conscious, a standard version for the majority and a premium one for those who want the best that you offer. The price gap between them will look much bigger when displayed in full than when it is broken down in monthly terms. When you show the monthly price on all versions, the upgrade becomes an easier decision.
The gap between a $400 product and a $600 product is $200. Spread over 12 months, it’s less than $17/month. Showing that on the product page — or in any marketing that features the two options side by side — reframes the choice completely.
This works best when the monthly pricing is visible on product listing pages and comparison pages, not just on the individual product page. Shoppers comparing options should be able to see the monthly figures side by side.
What to say:
- “Upgrade to [product name] — from $[X]/month.”
- “From $[X]/month”
Show the monthly price on bundles
Product bundles increase AOV by definition. You’re selling more than one item in a single transaction. The challenge is making the bundle feel like good value.
Showing the monthly price on a bundle removes the sticker shock of the combined total. A camera body, lens, and bag might look like a lot as a lump sum. Spread over 12 months, it looks like a manageable monthly commitment for everything they need.
If you offer bundles or frequently-bought-together recommendations, always show the monthly installment price alongside the bundle total.
What to say:
- Everything you need, from $[X]/month. No added interest or fees ⓘ
- Bundle and pay from $[X]/month on your existing credit card with 0% APR ⓘ
Wherever you use interest-free messaging, the following must be accessible to the shopper: “0% APR. Your credit card will be charged in equal installments according to your chosen plan. Your standard credit card terms and conditions still apply.”
This can sit directly on the page, or as a link that leads to a “Learn More” overlay or page. Splitit’s built-in “Learn More” modal includes this disclaimer automatically. If you build your own “Learn More” modal, make sure it’s in there.
Include monthly pricing for cart add-ons
When a shopper is at the cart stage, any cross-sell or upsell recommendation should include the monthly price, not just the item price. Showing what adding an item looks like in monthly terms makes the add-on feel like a small incremental decision rather than a separate purchase.
AOV strategies that work alongside installments
Installments help reduce the psychological barrier to spending more. These tactics complement that:
- Free shipping thresholds give shoppers a concrete reason to add to their order. The installment angle makes the threshold easier to reach because spending more feels less significant when the cost is spread.
- Product bundling increases the items per order. Combined with installment pricing, the total is less daunting.
- Cross-sell and upsell at checkout — relevant accessories, warranties, or complementary products shown at checkout. With installments visible, the incremental monthly cost of adding an item is minimal.
- Limited time offers — a time-limited bundle or upgrade offer combined with installment messaging creates urgency and removes the price barrier simultaneously.
Thresholds, bundles and cross-sells all become more effective when the price the shopper is weighing up is a monthly one.
