Average order value(AOV)
E-commerce
E-commerce
Average order value is revenue divided by number of orders. Alongside traffic and conversion rate it's the third lever you can pull.
You raise it with bundles, a free-shipping threshold just above the current average, genuinely relevant add-ons, and subscriptions — not with random upsells in the checkout.
Look at the median next to the average. A few large business orders can distort the picture badly.
Related terms
- Customer lifetime valueCustomer lifetime value is the total margin you earn from an average customer for as long as they stay, not just on the first purchase.
- CheckoutThe checkout is your shop's payment flow: from cart to confirmation. This is where most of the revenue you almost had disappears.
- ConversionA conversion is an action you defined as valuable: an enquiry, purchase, download or phone call. The conversion rate is the share of visitors who take it.