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Average order value (AOV)

Average order value is revenue divided by the number of orders in a period.

Stock photos and example labels, not customers.

Definition

Average order value is revenue divided by the number of orders in a period.

FormulaAOV = revenue / number of orders

Example with made-up numbers: 80,000 in revenue from 1,000 orders gives an AOV of 80.

How to use it

Compare it with the same period of last year and across customer groups. Refunds and shipping should be treated the same way in every period or the trend will mislead.

Related terms

Contribution marginLTV

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Measurement

How to calculate break-even ROAS for an ecommerce client

Break-even ROAS is the line between an ad that loses money and one that pays for itself. It takes three inputs and one division.

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