AOV (Average Order Value)
Total revenue divided by number of orders - a core lever for profitability alongside traffic and conversion rate. Raising AOV - through bundling, upsells, or free-shipping thresholds - is often cheaper than acquiring new customers, since it makes more revenue from traffic a business already has.
In practice
Raising AOV - through bundling, upsells, or free-shipping thresholds - is often cheaper than acquiring new customers, since it makes more revenue from traffic a business already has.
A store adds a "free shipping over $50" banner, and average order value climbs as shoppers add a second item to clear the threshold.
Why it matters
Because it doesn't require new traffic or a lower acquisition cost, raising AOV is often the fastest lever available to grow revenue from a business's existing customer base.
Worth knowing
- Bundling, volume discounts, and free-shipping thresholds are the most common ways to raise it.
- Should be tracked alongside conversion rate - a tactic that raises AOV but tanks conversion isn't a net win.
- Segmenting AOV by channel or customer type often reveals where the real opportunity sits.
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Tell us where things stand with putting aov into practice and we'll respond with next steps, no forms, no waiting in a queue.
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