Average Order Value (AOV)

Also known as: AOV, Average Transaction Value

Average order value is the average amount a customer spends on each order. You calculate it by dividing total revenue by the number of orders.

Average order value is the average amount a customer spends each time they buy from you. Take all the revenue you made in a period and divide it by the number of orders. That number shows what a typical order is worth.

AOV matters because it shows how much revenue you get from each sale. If you raise AOV, you can grow revenue without needing more customers. It helps you see if your pricing, bundles, and offers are working. Many teams track AOV by channel to see how email, ads, and onsite flows perform.

To increase AOV with email, suggest add ons or bundles that make the main product better. For example, pair a camera with a case or extra battery. You can test free shipping thresholds that sit slightly above your current AOV. Small changes like this can create steady lifts over time.