Average Order Value

The average dollar amount customers spend per order/transaction.

1 min readLast updated Apr 2026

Why It Matters

AOV is your most efficient growth lever because increasing it costs nothing extra in acquisition. Every dollar added to your average order is pure incremental revenue with minimal additional cost. A 10% AOV increase with stable traffic and conversion rates means 10% more revenue—without spending another cent on ads.

Formula

AOV=Total Revenue/Number of Orders
Example: Before: AOV = $156,000 / 2,000 = $78. After optimizations: $180,000 / 2,000 = $90

Benchmarks

Good Performance

$78 US average

Top Performers

Industry dependent

Practical Example

Scenario

An accessories brand generates $156,000 in monthly revenue from 2,000 orders. They implement free shipping at $75 (previously $50) and add product bundles.

Calculation

Before: AOV = $156,000 / 2,000 = $78. After optimizations: $180,000 / 2,000 = $90

Result

A $12 increase in AOV (15%) generated $24,000 in additional monthly revenue without acquiring a single new customer.

In-Depth Explanation

Increasing AOV is one of the most efficient growth levers since no additional acquisition cost is incurred. US ecommerce average is approximately $78 per order.

Pro Tips

  • 1Set free shipping thresholds 15-20% above your current AOV—this is the single most effective AOV lever.
  • 2Create product bundles that offer 10-15% savings versus buying items separately. Bundles increase AOV and perceived value.
  • 3Add post-purchase upsells. Customers who just bought are 60% more likely to add to their order than new visitors.
  • 4Show 'frequently bought together' products on product and cart pages—Amazon attributes 35% of revenue to this feature.

Common Mistakes to Avoid

Setting free shipping threshold too low (at or below current AOV), which just gives away margin without lifting order values.
Pushing aggressive upsells that annoy customers and increase returns. Quality suggestions beat quantity.
Ignoring mobile AOV, which is typically 20-30% lower than desktop. Optimize mobile checkout to close the gap.

Frequently Asked Questions

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