Average order value
What is AOV (average order value)?
AOV (average order value) is the average amount a customer spends per order: revenue divided by number of orders.
Formula
AOV = revenue ÷ orders
$50,000 of revenue from 1,000 orders is a $50 AOV. Raise it to $55 and the same traffic brings in $5,000 more.
Work out yours with the AOV calculator.
A real store example
Beekman 1802 advent calendar page: over 15 Meta ads linked here.
The calendar puts 24 drawers of products, 12 of them full size, into one purchase. Gift sets like this raise the value of a single order without asking the shopper to add items one at a time.
Put AOV to work
Ask Replo: "show AOV by traffic source this month".
Go deeper
Average order value: how to raise itAOV questions
- How do I increase AOV?
- Offer bundles and kits, set a free-shipping threshold a little above your current AOV, and suggest products that go with what's in the cart. Each one raises the value of orders you already get.
- Should AOV include shipping and tax?
- Most stores leave out tax and shipping, so AOV reflects product revenue. Whatever you choose, keep it consistent, or month-to-month changes will reflect your formula rather than your shoppers.
Related terms
Browse the glossaryUpselling
Upselling is offering a customer a bigger, better or more expensive version of what they're already buying.
Cross-selling
Cross-selling is offering a customer products that go with what they're buying, such as a case with a phone.
ROAS
ROAS (return on ad spend) is the revenue an ad campaign brings in for every dollar spent on it: revenue from ads divided by ad spend.
Conversion rate
Conversion rate is the share of visitors who complete a goal, usually a purchase: conversions divided by sessions.