What does AOV stand for?

AOV stands for Average Order Value, which represents the average amount customers spend each time they place an order.

How can I calculate AOV?

Divide total revenue by the total number of orders within the same time frame. Exclude taxes but include product prices, shipping, and additional fees.

Why is AOV important for eCommerce businesses?

AOV helps you measure profitability, optimize ad spend, and identify opportunities to increase revenue per order.

What affects AOV the most?

Pricing strategies, discounts, product assortment, and customer incentives all influence your AOV.

Can small businesses use AOV effectively?

Yes. Even small stores benefit from tracking AOV to understand buyer behavior and create promotions that increase order size.

Is a high AOV always better?

Not necessarily. A high AOV is valuable if it comes with healthy profit margins. Balance order size with sustainable pricing and customer retention.

Average Order Value (AOV)

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