E-commerce

Average order value (AOV)

The average amount spent per order.

What it is

AOV rises with bundles, upsells and free delivery thresholds, and falls with discounts.

For e-commerce

A higher AOV lets a store pay more to win each order, which opens up channels and audiences that were too expensive.

FormulaAOV = revenue / orders

Divide revenue by the number of orders.

Raising AOV with discounts that cut margin more than they lift order size.