Average order value, usually shortened to AOV, tells you how much revenue each order brings in on average. It is simple to calculate, but it becomes useful only when you read it together with conversion rate, margin, and acquisition cost.
Use the Average Order Value Calculator to get the number quickly. Then compare it with the Conversion Rate Calculator and the Margin Calculator.
The formula
Average order value is total revenue divided by number of orders. If a shop makes 8,000 from 160 orders, the AOV is 50.
Why it matters
AOV helps you understand basket size. It can show whether bundles, free-shipping thresholds, upsells, or discounts are changing how much people buy per order.
What AOV does not tell you
A higher AOV is not automatically better. If conversion rate drops or margin gets worse, the bigger basket may not improve the business.
Good workflow
Track AOV by channel, campaign, period, and product group. When it changes, check whether conversion rate and margin moved in the same direction before judging the result.
Related business guides
Continue with these connected guides when you need more context around the metric.
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