Discover how Average Order Value (AOV) measures the average amount spent each time a customer places an order. Learn how to track, analyze, and increase AOV to boost profitability and maximize the value of each transaction.
Marketing, Ecommerce
depends on
Average Order Value = Total Revenue / Number of Orders
Tracks the average revenue per order, helping businesses evaluate the effectiveness of product pricing, bundling, and cross-sell strategies.
Shopify, WooCommerce, BigCommerce, Google Analytics, Stripe, Klaviyo, ReCharge.
Tracked weekly or monthly to monitor revenue trends and optimize sales strategies.
Increase AOV by 15% in Q3 by introducing product bundles, offering free shipping thresholds, and upselling higher-value items.
An eCommerce Marketing Manager tracks AOV to measure the effectiveness of promotional tactics. If AOV is stagnant, they may test bundle offers, add upsell modules on product pages, or create volume discounts.
Recommend complementary or premium products during the shopping journey and at checkout.
Encourage larger purchases with value-packed product bundles or kits.
Motivate customers to spend more by offering free shipping above a certain amount.
Use customer data to serve dynamic, relevant product suggestions.
Average Order Value (AOV) is a key performance indicator (KPI) that measures the average amount of revenue generated per order over a specific time period. It is calculated by dividing total revenue by the total number of orders. AOV helps e-commerce businesses understand customer purchasing behavior and assess the effectiveness of strategies aimed at increasing revenue per transaction. Monitoring AOV is important for evaluating overall business health and identifying opportunities to improve marketing, upselling, and cross-selling efforts to drive higher returns from each customer order.
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