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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.

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