Average Order Value (AOV)
01 Definition
Average Order Value (AOV) meaning: The average revenue collected per order over a chosen period.
Average order value is total revenue divided by the number of orders in a period. It shows how much a typical customer spends per purchase. Decide whether you include taxes, shipping, and refunds, since those choices change the figure and make comparisons across tools inconsistent.
Why it matters
How Average Order Value (AOV) fits the work
AOV helps you judge pricing, bundling, and upsell efforts, and it pairs with conversion rate and traffic to explain changes in total revenue.
In context
A shop earns 50,000 dollars from 1,000 orders in a month, so its average order value is 50,000 divided by 1,000, which equals 50 dollars.
Practical note
A few very large orders can pull AOV upward, so review the median or the order-size distribution too. Rising AOV with falling order counts may still mean lower total revenue.