What is Average Order Value (AOV)?

Average Order Value (AOV) is the average dollar amount a customer spends per order. It is calculated by dividing total revenue by total number of orders. AOV is one of the three core levers of ecommerce revenue, alongside traffic and conversion rate.

How do you calculate AOV?

AOV is calculated with the formula: AOV = Total Revenue / Total Number of Orders. Use revenue from a consistent time period such as one month or one quarter. Exclude refunded orders for accuracy.

What is a good AOV for Shopify stores?

A good AOV depends on your industry. Fashion & Apparel averages $86, Beauty & Cosmetics $65, Electronics $215, Health & Wellness $55, Jewelry $175. If your AOV is above the industry average, you are performing well.

How can I increase my AOV?

The most effective strategies are product bundling, upsells and cross-sells at checkout, free shipping thresholds set just above current AOV, tiered pricing or volume discounts, and post-purchase one-click offers. Most Shopify stores can increase AOV by 10-20% with these tactics.

What is the difference between AOV and revenue?

Revenue is total money generated. AOV is the average per order. Increasing AOV is often the most profitable growth lever because it requires no additional customer acquisition spend. A $10 AOV increase across 1,000 monthly orders adds $10,000/month with zero extra ad spend.

AOV
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Calculate your average order value and see what a $10 AOV bump would do. Compare your numbers to industry averages by vertical.

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