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  1. Home
  2. /Glossary
  3. /AOV (Average Order Value)
GlossaryE-commerce

What is AOV (Average Order Value)?

AOV (Average Order Value) is the average amount spent per order. Calculated by dividing total revenue by the number of orders. A key metric for e-commerce optimization.

Understanding AOV

Increasing AOV is often more cost-effective than acquiring new customers. Common strategies include upselling, cross-selling, bundle deals, free shipping thresholds, and loyalty programs. Tracking AOV alongside conversion rate and customer lifetime value provides a complete picture of e-commerce performance.

Why It Matters

🎯

Increasing AOV is the most cost-effective growth lever. You've already paid to acquire the customer — getting them to spend $10 more per order costs almost nothing but directly boosts profit.

Real-World Example

💼

A skincare brand notices their AOV is $45. They introduce a "Complete Routine" bundle at $75 and add a free shipping threshold at $60. Within a month, AOV climbs to $62 — a 38% increase with no additional customer acquisition cost.

Common Misconception

⚠️

Increasing AOV isn't just about upselling more expensive products. Sometimes the most effective strategy is better bundling, cross-selling complementary items, or tiered free shipping thresholds.

💡

Pro Tip

Set your free shipping threshold 15-20% above your current AOV. This consistently drives customers to add one more item to their cart to qualify.

Key Takeaways

  • ✓AOV growth is cheaper than customer acquisition — optimize what you already have
  • ✓Free shipping thresholds, bundles, and cross-sells are the three most effective AOV tactics
  • ✓Track AOV by traffic source — different channels attract different spending levels
  • ✓A/B test your upsell placement and messaging to find what converts best
📌

Quick Summary

AOV (Average Order Value) falls under the E-commerce category. Explore related tools in our Profit Calculator.

Top E-commerce Tools

These tools put aov into practice. Compare features, pricing, and ratings:

S

Stripe

9.3/10Free plan
S

Shopify Plus

9.3/10From $2300/mo
J

Judge.me

9/10Free plan
S

Stripe Billing

9/10Free plan
F

Faire

8.8/10Free plan
C

Commercetools

8.8/10Free plan
View all E-commerce tools

Frequently Asked Questions

What is AOV (Average Order Value)?▼
The average amount spent per order. Calculated by dividing total revenue by the number of orders. A key metric for e-commerce optimization. A skincare brand notices their AOV is $45.
Why does AOV matter for businesses?▼
Increasing AOV is the most cost-effective growth lever. You've already paid to acquire the customer — getting them to spend $10 more per order costs almost nothing but directly boosts profit.
What's a common mistake people make with AOV?▼
Increasing AOV isn't just about upselling more expensive products. Sometimes the most effective strategy is better bundling, cross-selling complementary items, or tiered free shipping thresholds.
How does AOV affect e-commerce tool pricing?▼
AOV plays a role in how e-commerce tools are priced and valued. Tools that leverage AOV effectively often justify premium pricing through better outcomes. When comparing tools, look beyond the price tag and evaluate how well each one implements AOV for your use case.
What should beginners know about AOV?▼
AOV growth is cheaper than customer acquisition — optimize what you already have. Free shipping thresholds, bundles, and cross-sells are the three most effective AOV tactics. Here's a practical tip: Set your free shipping threshold 15-20% above your current AOV. This consistently drives customers to add one more item to their cart to qualify.

Related Calculators

Profit Margin Calculator

Free interactive calculator

Related Terms

Cart Abandonment

When a customer adds items to their online shopping cart but leaves the site without completing the purchase. Average abandonment rates are around 70%.

Conversion Rate

The percentage of visitors who complete a desired action (purchase, sign-up, download). Critical for measuring marketing and website effectiveness.

E-commerce Platform

Software that enables businesses to build, manage, and operate online stores, handling product catalogs, shopping carts, checkout, and order management.

More E-commerce Terms

E-commerce PlatformPayment GatewayCart AbandonmentDropshippingSKU (Stock Keeping Unit)Headless Commerce

Explore E-commerce

Now that you understand AOV, explore the best tools in this category.

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Cite this page
APA

ProPicked Editorial (2026). AOV (Average Order Value) — ProPicked Glossary (2026). ProPicked. https://propicked.com/glossary/aov-average-order-value

BibTeX
@misc{propicked2026glossaryaovaverageordervalue,
  author = {ProPicked Editorial},
  title = {AOV (Average Order Value) — ProPicked Glossary (2026)},
  year = {2026},
  publisher = {ProPicked},
  url = {https://propicked.com/glossary/aov-average-order-value}
}

Methodology: see our editorial policy. Provider data verified as of June 18, 2026.

Reviewed by ProPicked Editorial TeamUpdated Jun 18, 2026How We Review