Average Order Value (AOV)

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on a website or app.

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What Is AOV?

Average Order Value (AOV) is a key ecommerce metric that measures the average amount spent per transaction. It is calculated by dividing total revenue by the number of orders.

How to Increase AOV

Common strategies include upsells, cross-sells, volume discounts, free shipping thresholds, and product bundles. Many ecommerce apps specialize in post-purchase upsells and recommendations.

Related Terms

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) predicts the total revenue a business can expect from a single customer account throughout the relationship.

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