Average order value (AOV) = total revenue ÷ number of orders. A store that made $50,000 across 1,000 orders has an AOV of $50. A rising AOV lifts revenue and profit per order, and how much you can afford to spend acquiring a customer.
Average order value
AOV
$50
$50,000 ÷ 1.0K orders
AOV = total revenue ÷ number of orders over the same period. Raising AOV lifts revenue and profit per order without needing more traffic, and increases how much you can profitably spend to acquire a customer.
Why AOV matters
AOV sets how much revenue each order generates, which determines how much you can profitably spend to acquire a customer and how quickly paid acquisition pays back. Bundles, upsells, volume discounts, and free-shipping thresholds are the most common levers to raise it without buying more traffic.
Frequently asked questions
How do I calculate average order value?+
Average order value (AOV) = total revenue ÷ number of orders. A store that made $50,000 across 1,000 orders has an AOV of $50. Measure it over a fixed window so it's comparable period to period.
What is a good average order value?+
There's no universal good AOV — it depends on category and price point — but a rising AOV is almost always positive, because it lifts revenue and profit per order without needing more traffic. Bundles, upsells, and free-shipping thresholds are common ways to raise it.
Why does average order value matter?+
AOV sets how much revenue each order generates, which determines how much you can profitably spend to acquire a customer. A higher AOV raises lifetime value and makes paid acquisition more sustainable.
