Average Order Value (AOV)
Average Order Value (AOV) is a critical e-commerce metric that measures the typical monetary value of each completed transaction by calculating the mean purchase amount across all orders in a given period. This metric is essential for evaluating sales performance, pricing strategies, and the effectiveness of upselling/cross-selling initiatives.
Definition
Average Order Value (AOV) is a critical e-commerce metric that measures the typical monetary value of each completed transaction by calculating the mean purchase amount across all orders in a given period. This metric is essential for evaluating sales performance, pricing strategies, and the effectiveness of upselling/cross-selling initiatives.
Examples
An e-commerce store generates $50,000 from 500 orders, resulting in a $100 AOV
Seasonal AOV variations: $120 during holiday season vs $80 in off-peak periods
Product category AOV differences: Electronics $250, Apparel $75
B2B platform with $5000 AOV vs B2C site with $85 AOV
Calculation
How to Calculate
Calculate by dividing the total revenue generated in a specific period by the total number of completed orders in that same period. Excludes canceled orders, returns, and failed transactions.
Formula
AOV = Total Revenue / Number of OrdersUnit of Measurement
$
Operation Type
divide
Formula Variables
Comparison
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