Average order value (AOV)
Average order value is the average amount a customer spends in a single order, calculated as total revenue divided by number of orders.
AOV tells you how much revenue each order is worth on average. If you did $20,000 across 400 orders last month, your AOV is $50.
It matters because raising AOV increases revenue without needing more traffic. Bundles, volume discounts, free-shipping thresholds and post-purchase upsells are the usual levers.
Read AOV alongside conversion rate and margin. An AOV lift driven entirely by discounted bundles can shrink profit even as revenue climbs.