In one sentence
Average order value is the average amount a shopper spends per order, found by dividing revenue by the number of orders, and raising it grows revenue without needing more traffic.
How to calculate average order value (AOV)
Divide total revenue by the number of orders in the same period. A store that takes $20,000 across 400 orders in a month has an AOV of $50.
Decide up front what counts as revenue: before or after discounts, with or without shipping and tax, before or after returns. Any choice works. Using the same one every month is what makes the trend worth reading.
AOV vs. customer lifetime value: what's the difference
Why average order value matters for ecommerce brands
Every order carries fixed costs: payment fees, picking, packing, shipping, and the marketing spend it took to win the click. A bigger basket spreads those costs over more revenue.
AOV also sets how much you can afford to pay for a customer. When each order is worth more, a customer acquisition cost (CAC) that looked too high can start to make sense.
How to increase average order value on your store
- Set a free shipping threshold a little above your current AOV.
- Bundle products that are bought together, and price the bundle below the separate items.
- Offer a cross-sell on the product page and an upsell in the cart.
- Add quantity breaks for products people restock.
- Check contribution margin after each change, not just AOV.
AOV FAQs
What's a good average order value for an online store?
It depends on what you sell. A candle shop and a furniture brand will never look alike. Track your own AOV month over month and by channel instead of chasing a benchmark.
Where do I find average order value in Shopify?
Shopify's Analytics dashboard shows average order value, and the sales reports let you break it down by date, channel and product.
Does a higher AOV always mean more profit?
No. Deep bundle discounts or free shipping on heavy items can raise AOV and cut margin at the same time. Judge every AOV tactic by what each order leaves you after costs.
Do shoppers who come from AI assistants spend more per order?
Measure it on your own store. Tag visits from AI answers with UTM parameters or referrer data, then compare AOV for AI referral traffic against your other channels.
About the author
Jenn Starr, Co-founder, Selix
Jenn has spent 20+ years helping SaaS startups build their marketing and implementation playbooks. She has bootstrapped three marketing agencies and is a 500 Startups alum. At Selix, she leads the work of getting ecommerce brands named in AI answers.
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