AOV (Average Order Value)

AOV (Average Order Value) is the average amount spent per order over a given period, calculated by dividing total revenue by the number of orders. It is a core e-commerce metric that shows how much each purchase is worth, independent of how many customers you have.

Why it matters

Revenue is the product of order count and order value, so raising AOV grows revenue without paying to acquire more customers. Stores influence it with bundles, free-shipping thresholds, upsells and cross-sells. AOV also affects how much you can afford to spend on advertising: a higher AOV leaves more margin to cover acquisition cost.

Example

Revenue in March: 540,000
Orders in March:     1,800
AOV = 540,000 / 1,800 = 300

If a free-shipping threshold of 400 pushes the AOV from 300 to 330 on the same 1,800 orders, revenue rises by 54,000 with no extra traffic.

Common mistakes

• Treating AOV alone as success. A discount that lifts AOV but lowers margin or repeat purchases can hurt profit.
• Averaging across very different segments. A few bulk orders can distort the mean, so check the median too.
• Mixing gross and net revenue (before or after refunds and discounts) from one report to the next.

Related

• Upsell
• Cross-sell
• Conversion rate
• ई-कॉमर्स

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