Average Selling Price is the average price a product or group of products sells for over a specific period. It’s a core ecommerce and retail metric used to understand pricing performance, product mix, and customer behaviour.
Why Average Selling Price Matters
- Reveals how much customers are actually paying, not just what items are listed for
- Helps evaluate pricing strategy, promotions, and discounting
- Indicates whether customers are trading up or down
- Supports forecasting, merchandising decisions, and profitability analysis
- Acts as an early signal of shifts in customer intent
How Average Selling Price Is Calculated
{Total Revenue}\{Units Sold}
Example:
If revenue is £12,000 from 300 units sold, the Average Selling Price is £40.
Common Use Cases
- Comparing pricing performance across channels (e.g., marketplace vs DTC)
- Tracking the impact of discounts and promotions
- Understanding category or product‑mix shifts
- Monitoring seasonal pricing trends
- Supporting inventory planning and sales forecasting
Related Terms
- AOV (Average Order Value)
- GMV (Gross Merchandise Value)
- Margin
- Sell‑through rate
- Markdown
