AOV (Average Order Value)
AOV is the average amount a customer spends per order.
AOV is total revenue divided by the number of orders. Raising AOV grows revenue without buying more traffic, and often lifts profit per order because shipping and ad costs are per order.
Bundles, free shipping thresholds and product recommendations are common ways to raise AOV.
Formula
AOV = Revenue ÷ Number of orders
Example
A store makes 48,000 from 600 orders, so AOV is 80.
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Common questions
Should AOV include shipping and tax?
Usually not, but stay consistent over time.
Does a higher AOV always mean more profit?
Not if it comes from heavy discounting.