Does Size Matter for Shopping Baskets?

July 29, 2022

When we go shopping for things, be it food, clothing, shoes, or any other type of item, one of the most important ways for merchants to gain a better understanding of how involved we are with their brand is by analysing the size of every specific order's shopping basket. A crucial key performance indicator (KPI) for commerce brands of any sort is the basket size statistic. This measure offers businesses a glance into the average monetary worth of a customer's purchasing capacity, as well as whether or not that value has risen or decreased over time.

The following is an explanation of why retail business owners need to embrace this important measure and how they can make the most of the data that it gives.

The ABS (Average Basket Size) And Why It Matters

The term "average basket size" (ABS), which is often referred to as "units per transaction" (UPT), describes the typical number of products that are purchased in a single transaction. To get your average basket size, you will need to divide the total number of products sold by the total number of transactions.

Because your ABS may be used as a measurement tool to determine the overall performance of your company, basket size is an important factor to consider. The calculation of basket size enables retailers to measure a variety of critical dimensions that ultimately affect their bottom lines, such as the success of their marketing efforts, the impact of advertising and sales campaigns, and the quality of the experience that they provide for their customers. Retailers are also able to learn which products are commonly purchased together, the influence of external variables on purchasing patterns such as the seasons and holidays, and a variety of other trends as a result of this. In the end, these important indicators give businesses insights into whether or not they are serving the demands of their customers at the time of purchase and whether or not they are delivering the appropriate variety or mix of items to their customers.

Importance and Impact of a Right Shopping Basket Size

Calculating your average basket size has a dual benefit: first, it helps you evaluate the effectiveness of your marketing and sales activities, and second, it improves your ability to understand your clients.

• Inspect The Average Order Value

Monitoring your "average order value," also known as the "average amount spent each time an order is made," provides you with a useful way to evaluate the efficacy of your marketing and sales activities. However, if you aren't also keeping track of ABS as a supporting parameter, it might be difficult to figure out the AOV values properly.

• Improve Your Knowledge Of Consumer Behaviour

You can learn a lot about a person's shopping habits by looking at the statistics, whether they're in a store or shopping online. Your store's success depends on accurately monitoring customer behaviour. The data may help you distinguish between different sorts of customers, forecast consumer trends and outsell competitors, make decisions on how to best retain customers, and add the most relevant goods to your shelf.

Boost The Average Size of The Shopping Cart

The shopping basket size on average isn't where you want it to be. This is the point at which a few tried-and-true retail methods can assist you in increasing that number. Try using several strategies such as upselling and cross-selling, offering free shipping and product bundling, utilising shop layout to your advantage, cutting down on stock-outs, and personalising suggestions.

When you know your typical basket size, you have a leg up on the competition. Maintaining relevance in a competitive industry is possible if you know what things sell best and how to expand your business consistently.

Contact us for all your shopping cart and trolley needs!

Head Office VIC

SOS Retail Sales
16 Brett Drive, Carrum Downs Vic 3201
Ph: 1300 131 383
Fax: 03 9775 0733

NSW Office

SOS Maintenance Services Pty Ltd
1/6 Smoothy Place, Arndell Park NSW 2148
Ph: 1300 131 383

Email: [email protected]