Average order value (AOV)

What is the average order value?

Average Order Value (AOV) is an important metric in ecommerce that tells you the average amount a customer spends per order on your online store. It helps you understand customer spending habits and how much revenue you generate from each transaction.

Tracking AOV helps you analyze and improve the effectiveness of your pricing, upselling, and marketing strategies.

How to calculate average order value?

Here’s how you can calculate AOV for your store:

AOV = Total Revenue ÷ Total Number of Orders

For example, if you made $2500 from 50 orders, your AOV would be $50.

How to increase average order value?

To increase your store’s AOV, you can apply the following tactics:

• Offer product bundles or kits
• Add free shipping thresholds (“Spend $75 for free shipping”)
• Use upselling and cross-selling techniques
• Offer discounts on larger purchase
• Highlight customer reviews to build trust and encourage add-ons

Example of average order value in ecommerce

If an ecommerce store makes $10,000 in sales from 500 orders in a month, the AOV is $20. Boosting that to $25 through smart upselling would increase revenue without needing more customers

Driftcharge Tip

Offer upsells and cross-sells to increase AOV and if possible, offer bundles.

Ganesh Pawar

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Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.