Average Order Value (AOV)

Average Order Value (AOV) is the mean dollar amount customers spend each time they place an order on your website. It is calculated by dividing total revenue by the number of orders. Increasing AOV is a key strategy for e-commerce growth, often achieved through upselling, cross-selling, offering free shipping thresholds (e.g., 'Free shipping over $50'), or bundling products. High AOV allows a business to spend more on customer acquisition while remaining profitable.