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Ecommerce

Average Order Value (AOV)

Average order value is the average revenue per order, calculated as total revenue divided by the number of orders over a given period.

AOV is one of the three levers of ecommerce revenue: traffic × conversion rate × AOV. Lifting AOV is often the cheapest of the three to influence — it does not require more visitors or higher conversion, just larger baskets from existing buyers.

Tactics that move AOV: free-shipping thresholds set just above current AOV, product bundles, upsells in cart, recommended-with-this-item modules, and quantity discounts on consumable products. Most have minimal downside if implemented honestly.

Watch the trade-off with conversion rate. Aggressive upsells in the checkout flow can lift AOV while tanking checkout conversion. Always measure both together — a higher AOV with a lower checkout conversion can be net-negative on revenue.

Related terms

  • Conversion Rate

    Conversion rate is the percentage of visitors to a page or funnel who complete a desired action, calculated as conversions divided by total visitors.

  • Customer Lifetime Value (CLV / LTV)

    Customer lifetime value is the total revenue a customer generates over their entire relationship with your business, used as the upper bound on what you can afford to spend to acquire each customer.

  • Abandoned Cart

    An abandoned cart is an ecommerce session where the shopper added one or more products to their cart but left the site before completing the purchase.

← Abandoned CartConversion Rate →

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