To increase AOV with store credit, start with what the credit actually is. Shopify store credit is a payment method, not a discount, so an order paid partly with credit still counts at full value in your average order value report. That makes it a different tool from a coupon: it can nudge baskets up without marking prices down.
The numbers repeated online for how much extra customers spend are all over the place, from about $20 an order to claims of 300% above the credit's value, and most trace to gift card surveys or vendor case studies. This guide covers the average order value meaning in Shopify's own terms, what the research shows, five credit designs to increase AOV Shopify stores can test, and a margin check most guides skip.
Average order value meaning, and how Shopify calculates it
The average order value meaning is simple: the average amount a customer spends per order, calculated as revenue divided by number of orders. Shopify's version is narrower. According to Shopify's changelog on its AOV definition, the Shopify average order value is gross sales minus discounts, divided by orders, excluding adjustments made after the order was created, such as edits, exchanges, and returns. Taxes and shipping are left out.
Two details matter for store credit. First, a discount code lowers your Shopify AOV by its amount, while store credit does not, because credit is a payment method. Second, the mean can be pulled by a few large orders, so check the median and the most common order value alongside it. Figures quoted for the "average Shopify AOV" come from different samples and categories, so your own history, segmented by customer type, is the better yardstick.
Why store credit can increase AOV, and what the evidence shows
The mechanism has real research behind it. In Raghubir and Srivastava's peer-reviewed study on gift certificates and spending. published in the Journal of Experimental Psychology: Applied in 2008, people spent more when the same face value arrived as a gift certificate than as cash. The gap shrank when the difference between the two forms was made obvious.
Treat that as an explanation, not a forecast. These were small lab experiments on gift certificates, not Shopify stores. Real-world data exists for gift cards: Capital One Shopping's compilation of public data reports that 61% of people redeeming gift cards spend more than the balance, and among those who do, the extra averages $108. Those figures describe gift cards. The numbers circulating for store credit specifically rarely come with a primary source, so measure the effect in your own store.
Five store credit designs that increase AOV Shopify stores can test
Size the credit below a typical order
Shopify applies a customer's full available balance up to the order total, with no partial option. A credit larger than a typical cart covers the whole order and gives no reason to add anything. A credit well under your AOV leaves the customer paying the difference, which is where overspend can happen. This is a design rule of thumb, not a research finding, so test it.
Make the earn moment a threshold
"Spend $75, earn $10 in credit" works like a free-shipping threshold. Set it a little above your current AOV so customers add one more item to qualify, and run it as a time-limited campaign when you want the nudge now. Because the credit is redeemed later, the same offer can lift two orders.
Steer the basket with collection-specific credit
Bonus credit when the cart includes a product from a chosen collection moves the mix toward add-ons, accessories, or higher-margin items. It raises AOV through what's in the basket, not only its size.
Reward higher spend with tiers
Earning more credit per dollar as lifetime spend rises gives customers a reason to consolidate orders with you instead of splitting them across stores. Model the cost before launch, since richer tiers mean more credit outstanding.
Set an expiry window and remind before it lapses
An expiry matched to your reorder cycle creates a reason to redeem, and a reminder email recovers balances that would otherwise go stale. Check local rules on expiring credit before you set a date.
The margin check: credit has to pull in more than it costs
A higher AOV is not automatically more profit. Credit you issue as a reward costs margin, so it has to earn itself back. The rule: each $1 of reward credit redeemed needs $1 divided by your gross margin in extra order value to break even against the same customer ordering at your baseline AOV.
An illustration with made-up numbers: a $60 baseline order at 50% gross margin earns $30. A customer redeems $10 of credit on an $85 order, paying $75 in cash against $42.50 of product cost, for $32.50 of gross profit. AOV rose about 42%, but gross profit rose about 8%. Break-even in this case is an $80 order.
One distinction helps. Credit issued in place of a cash refund is the customer's own money, retained revenue rather than a reward cost, so the only question is whether the next order grows. Reward credit is different, and it's the kind to model.
How to measure the effect on your Shopify AOV
Find the trend in Analytics under Reports, in the Average order value over time report. Then compare orders paid with store credit against orders paid without it, within the same customer segment, since returning customers spend more regardless of credit. For reward credit, hold out a random slice of eligible customers for 60 to 90 days and compare AOV, order frequency, and gross profit. Because Shopify's AOV excludes later returns and exchanges, check net sales alongside it.
Running AOV-focused credit with Rewardify
Rewardify: Store Credit & VIP supports spend-based rewards including lifetime spend tiers and campaign-linked earn rates, plus product and collection-specific rewards and rebates, so the designs above don't need custom code. It shows the balance at checkout and sends reminders before credit expires. To compare it with your current setup, see Rewardify: Store Credit & VIP, and for more retention strategy, read our blog on store credit and loyalty.
Common mistakes when using credit to increase AOV
- Quoting one overspend statistic as if it applies to your store. Most are gift card or vendor figures.
- Issuing credit larger than a typical order. The customer has no reason to add items.
- Skipping the margin check. AOV can climb while profit barely moves.
- Comparing credit users to all customers. Engaged customers already spend more.
- Forgetting sign-in. Native credit only appears for signed-in customers.
FAQ
Q1. What is the average order value meaning? Average order value is the average amount spent per order: total revenue divided by the number of orders for the same period. Shopify's report uses gross sales minus discounts, excluding taxes, shipping, and later returns.
Q2. How do I increase AOV on Shopify with store credit? Size credit below a typical order, tie earning to a spend threshold, add collection-specific bonuses, and use tiers. Then measure against a holdout group and check margin.
Q3. Does store credit lower my Shopify AOV? No. Credit is a payment method, not a discount, so an order paid partly with credit counts at full gross-minus-discounts value. A discount code does lower it.
Q4. What is a good Shopify average order value? It depends on category and customer mix, and published averages come from different samples. Compare against your own segmented history first.
Q5. Can customers use part of their store credit on Shopify? Not natively. Shopify applies the full available balance up to the order total, and credit only appears for signed-in customers.
Conclusion
Store credit can increase AOV because a stored balance can feel easier to spend than cash, but the size of the effect is something to measure, not assume. Treat it as a payment method rather than a discount, size it below your typical order, and check that the extra basket value covers what the credit costs.
If you want to run those designs without custom development, Rewardify: Store Credit & VIP automates spend-based credit, tiers, and expiry reminders on Shopify.