What is AOV?

Average Order Value (AOV) is a key e-commerce metric that measures the average total of every order placed with a merchant over a defined period. It's calculated by dividing total revenue by the number of orders.

Why AOV Matters

AOV is a critical metric for understanding customer purchasing behavior and evaluating the effectiveness of your pricing strategy, product bundling, and upselling efforts. It helps you:

• Measure the effectiveness of your merchandising and marketing efforts
• Set appropriate customer acquisition cost targets
• Identify opportunities for cross-selling and upselling
• Evaluate the impact of promotions and discounts

When to Use AOV

AOV is most valuable when:

• Analyzing the effectiveness of your pricing strategy
• Evaluating the impact of marketing campaigns
• Comparing performance across different time periods
• Setting targets for customer acquisition costs
• Developing strategies to increase revenue per customer