Average Order Value (AOV)

What is Average Order Value (AOV)?

Average Order Value is the average dollar amount spent every time a customer places an order on a website or mobile app. It is calculated by dividing total revenue by the number of orders over a specific period.

Why It Matters

• Increasing this value is one of the most effective ways to grow total revenue without increasing marketing spend.

• It helps businesses understand customer buying patterns and the effectiveness of their pricing strategies.

• Merchants use this metric to evaluate the success of cross-selling and up-selling efforts.

• A higher value improves the return on investment for customer acquisition costs.