Average Order Value
The average dollar amount customers spend per order/transaction.
Formula
The average dollar amount customers spend per order/transaction.
Use our free Conversion & AOV Calculator to model how AOV improvements impact your total revenue.
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
Benchmarks
A good AOV is $78 US average. Top performers achieve Industry dependent.
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 = $90Result
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
Frequently asked questions
Put it to work
Related Terms
The average revenue generated per website visitor, combining both conversion rate and average order value.
The average number of items purchased per order.
The percentage of revenue remaining after subtracting the cost of goods sold (COGS).
The percentage of shoppers who add items to their shopping cart but leave without completing the purchase.
Combining multiple products at a total price lower than purchasing individually.
Free Calculator
See what a small lift in conversion rate or order value is worth.
Enter traffic, conversion rate and average order value. See the extra revenue and profit a lift in either one adds each month. Calculator results are available without an account.
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7.7x blended return at scale — seven figures attributed, across five straight quarters · Modern Prairie · Apr 2025–Jun 2026 Read the Modern Prairie case study
