Minimum Order Value

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Fulfilling small orders is not always worthwhile for the business, as operating costs, time and effort spent on processing them often overweight the profit gained. In such cases, implementing a minimum order value requirement might be prudent to make the orders handling process more efficient for shop owners. On the one hand, you can just set a minimum order value, and if the cart value is below it, the buyers will not be allowed to proceed to order placement. On the other hand, you can set up a fee for processing small orders below the minimum value, or you can show a message on the checkout recommending the buyers to add more items, but still let them place the order. Even though minimum order value is not a panacea for boosting average order values for all businesses and cases, when setting it you can:

• get buyers to checkout with larger carts, which can increase your sales;
• prevent waste of resources on small orders;
• ensure that your cost of items sold is not too high for each transaction, which in the long run can make your business more profitable;
• use this feature in the promotional campaigns, for example, you might want to offer free shipping for orders that are above the minimum value.

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