Average Order Value (AOV)

Average Order Value (AOV) measures the average value of your orders. Simple enough, right? Just pick a time frame, do a little math, and you’ll have your AOV.

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The math

To determine your Average Order Value, divide your total revenue by your total number of orders.

Revenue ÷ Orders = Average Order Value

If you’re in ecommerce, odds are your ecom software already has your AOV worked out for you. If you take payments through a payment processor, export your payment data to a spreadsheet, create an “AVERAGE” cell, and highlight all of the income coming in from your orders. Something like this:

How can I increase my AOV?

Test multiple price points.

Try tiered pricing.

Create opportunities for upsells, cross-sells, and downsells.

Introduce minimum order incentives like thresholds for free shipping, a gift with purchase, or a discount.

Make it easy for customers to find what they’re looking for with advanced personalization.