AOV is the abbreviation of Average Order Value.
Average Order Value (AOV) is the average amount a customer spends per order over a specific period. It’s a core ecommerce metric used to understand purchasing behaviour and revenue efficiency.
Why AOV Matters
- Shows how much value each transaction contributes to revenue
- Helps evaluate upsell, cross‑sell, and bundling strategies
- Indicates customer buying patterns and intent
- Supports forecasting and customer lifetime value modelling
- Helps teams understand the impact of promotions and merchandising decisions
How AOV Is Calculated
AOV = Total Revenue/Number of Orders
Example: If you generate £50,000 from 2,000 orders, your AOV is £25.
Common Use Cases
- Measuring the impact of upsell/cross‑sell tactics
- Evaluating promotional effectiveness
- Comparing performance across channels
- Understanding customer behaviour by segment
- Supporting pricing and merchandising strategy
Related Terms
- ASP (Average Selling Price)
- GMV (Gross Merchandise Value)
- Conversion rate
- Customer lifetime value (CLV)
- Basket size
