Help Center📈 What is Average Order Value (AOV)?
Definition:
Average Order Value (AOV) is calculated as:
Total Revenue ÷ Total Number of Orders
It tells you how much, on average, a customer spends per order in your store.
Why AOV Matters
AOV is a key metric for understanding customer purchasing behaviour. Improving AOV means getting more revenue from the same number of customers — often without increasing marketing spend.
How Can I Increase My AOV?
Here are a few tried-and-tested strategies:
Upselling
Recommend higher-value alternatives or premium versions of products.
Example: Offer a deluxe version of a skincare product at checkout.
Bundling
Package complementary products together at a value price.
Example: Shampoo + Conditioner + Hair Mask sold as a “Hair Care Kit”
Free Shipping Threshold
Encourage customers to spend more to qualify for free shipping.
Example: “Spend $75 or more and get free shipping!”
Loyalty & Rewards Programs
Reward customers for spending more with exclusive perks or points.
Example: Earn double points on orders over $100.
Pricing Optimisation
Review and test your pricing strategy to determine the optimal price point where you can increase prices without compromising conversion rates.
Tip: Use customer data to test whether small increases in price impact buying behavior.
Why You Should Track AOV Over Time
Tracking AOV over time helps you:
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Measure the impact of marketing and merchandising strategies
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Identify opportunities to boost profitability
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Understand how customer behaviour shifts across campaigns, seasons, or product lines
--> Access all Metrics cheatsheet here.