Find your average order value in seconds — the lever behind profitable ad spend.
What is average order value (AOV)?
Average order value (AOV) is the average amount a customer spends in a single order. It's one of the most useful numbers in ecommerce because it directly affects how much you can afford to pay for traffic.
AOV = Total revenue ÷ Number of orders
If you did $24,000 in sales across 800 orders, your AOV is $24,000 ÷ 800 = $30.
Why AOV matters more than it looks
Every paid channel has a cost per order. If your AOV is $30 and it costs you $25 to acquire an order, you're on thin ice. Raise AOV to $45 and the same $25 acquisition cost suddenly looks healthy. That's why growing AOV is often the fastest way to make previously unprofitable ad campaigns work — you're increasing revenue per order without spending a cent more on ads.
How to increase AOV
The proven levers: product bundles, volume discounts ("buy 2 get 10% off"), free-shipping thresholds set just above your current AOV, upsells and cross-sells at checkout, and order minimums for promotions. Track AOV monthly — small, steady increases compound into meaningfully better unit economics across your whole ad budget.
Frequently asked questions
How do you calculate average order value?
Divide total revenue by the number of orders over the same period. For example, $24,000 in revenue from 800 orders is an AOV of $30. Use orders, not customers — a single customer can place multiple orders.
What is a good AOV?
There is no universal benchmark; it depends entirely on what you sell. A good AOV is one that comfortably exceeds your cost to acquire an order. Focus on improving your own AOV over time rather than comparing it to unrelated stores.
How can I increase my average order value?
Use product bundles, volume discounts, free-shipping thresholds set just above your current AOV, and checkout upsells or cross-sells. These raise revenue per order without increasing ad spend.
What is the difference between AOV and revenue per customer?
AOV measures spend per order; revenue per customer measures spend per buyer across all their orders. A customer who orders three times contributes to one customer but three orders, so revenue per customer is usually higher than AOV.
Why does AOV matter for ROAS?
Higher AOV means each conversion generates more revenue for the same ad spend, which directly improves ROAS. Raising AOV through bundles, upsells, or free-shipping thresholds is often the fastest way to make ad campaigns profitable without increasing budget.
Should I use AOV or revenue per customer for planning?
Use AOV when optimizing checkout, pricing, and ad efficiency per conversion. Use revenue per customer when modeling retention, subscriptions, or repeat purchase behavior. Both matter, but they answer different questions.