Average Order Value (AOV) is a key e-commerce metric that measures the average total of every order placed with a merchant over a defined period.


The Average Order Value (AOV) is a key metric in e-commerce that measures the average total of every order placed with a merchant over a defined period. It is calculated by dividing the total revenue by the number of orders. It's a crucial indicator of how much revenue each order brings in on average.

Usage and Context

AOV is used by businesses to understand their customers' purchasing habits. This information can help them develop effective pricing strategies and determine whether or not their marketing efforts are successful. For example, if a company's AOV is increasing, it could mean that customers are purchasing more expensive items or adding more items to their cart per order.


What is a good Average Order Value?

The 'good' AOV varies from industry to industry and depends on factors like the type of products you sell and your pricing strategy. However, a good AOV is generally one that is increasing over time.

How can I increase my Average Order Value?

There are several strategies to increase AOV, including upselling, cross-selling, offering bundle deals, and providing free shipping for orders over a certain amount.

Related Software

Many e-commerce platforms and analytics tools, like Shopify, WooCommerce, and Google Analytics, can help you track and analyze your AOV.


Understanding your AOV can help you make more informed business decisions. It can help you identify trends, optimize your pricing strategy, and increase your overall revenue. Furthermore, improving your AOV can be more cost-effective than constantly trying to acquire new customers.


In conclusion, the Average Order Value is a valuable metric for any e-commerce business. By tracking and aiming to improve your AOV, you can increase your revenue and make your business more profitable.

Related Terms

ARR (Annual Recurring Revenue)

Learn about ARR (Annual Recurring Revenue), a key metric for subscription-based businesses. Understand its usage, benefits, related software, and more.


Cross-selling is a sales technique used to sell additional products or services to existing customers, aiming to increase the value of the sale.


E-commerce refers to the buying and selling of goods or services using the internet. It includes the transfer of money and data to facilitate these transactions.

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  • njlitics
  • nibol
  • startupgeeks
  • paymo
  • tedx
  • tweethunter