Calculate AOV with a clear formula and example, assess it in context, and choose practical ways to increase profitable order value.
Average Order Value shows how much revenue your store generates from each order on average during a defined period. It is an order-based metric, not a measure of spending per customer, because one customer may place several orders.
Use the formula AOV = total order revenue ÷ number of orders. If your store generates €60,000 from 1,000 orders in one month, its AOV is €60. Use the same revenue definition and time period whenever you compare results.
Use completed orders and the revenue actually recognized by your business. Decide consistently whether revenue includes taxes, shipping, discounts, refunds, and cancellations. Document the method so monthly or segment-level comparisons remain meaningful.
AOV uses revenue from completed orders, while cart value can describe the amount in a shopper’s basket before checkout, discounts, or abandonment. For financial analysis, AOV should reflect completed purchases rather than items merely added to a cart.
There is no universal good AOV. Product prices, category, market, customer type, and purchase frequency all affect it. Compare your result with previous periods and relevant segments, then assess it alongside gross margin, conversion rate, and acquisition cost.
Test relevant product bundles, complementary cross-sells, higher-value alternatives, quantity discounts, and free-shipping thresholds. Keep offers useful and easy to decline. Monitor conversion rate and margin to confirm that a higher cart value also produces a better business result.
Track AOV over consistent periods and break it down by channel, customer type, device, and product category. Also inspect the median and order-value distribution because a few expensive orders can distort the average. Heatmaps, Session Replays, and Smart Funnels can help explain changes in shopping behavior.