Revenue

AOV

Average Order Value

The average amount spent each time a customer places an order. Increasing AOV is a key lever for revenue growth without acquiring new customers.

What is AOV?

Average Order Value (AOV) measures the average dollar amount spent when a customer places an order. It's a crucial metric for e-commerce and DTC brands looking to maximize revenue from existing traffic. Tactics to increase AOV: - Free shipping thresholds - Product bundling - Upsells and cross-sells - Volume discounts - Limited-time promotions - Loyalty rewards for larger orders AOV is particularly important because increasing it doesn't require acquiring new customers—you're getting more value from your existing traffic.

Formula

AOV = Total Revenue ÷ Number of Orders

Example

If you made $50,000 from 1,000 orders, your AOV is $50.

Why AOV Matters

Increasing AOV improves profitability without increasing customer acquisition costs.

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