AOV (Average Order Value)
MetricAOV is the average dollar amount spent by a customer whenever they place an order.
What is AOV, in plain English?
Average Order Value is simply the average shopping cart size. If 10 shoppers visit your bakery and you ring up $200 in total sales, your AOV is $20 per purchase.
How do you calculate AOV?
AOV = Total Revenue ÷ Total Number of Orders
AOV example
$50,000 in revenue from 1,000 orders gives an AOV of $50.
Common AOV mistakes
A rising AOV can be misleading if driven by a few massive outlier orders (e.g. bulk B2B purchases) while the vast majority of everyday consumer carts are shrinking. Always check the median order value alongside the mean.
What is a good AOV?
A good AOV is one that comfortably covers shipping, fees and the acquisition cost of an order. Compare AOV with your CPA: if acquiring an order costs more than the gross profit on an average order, first-order economics lose money unless customers come back. Track the median order value alongside the mean to catch outlier distortion.
AOV FAQs
How do you calculate AOV?
Divide total revenue by the number of orders in the same period: $50,000 from 1,000 orders is an AOV of $50. Decide upfront whether revenue is gross or net of discounts, taxes and returns, and keep the same definition every month.
How does AOV affect ROAS?
At the same conversion rate and cost per click, a higher AOV means more revenue per order and therefore a higher ROAS. That's why bundles and free-shipping thresholds can lift ROAS without any change to targeting — as long as they don't cut margin by more than they add.
Should I track mean or median AOV?
Both. The mean is pulled up by a few very large orders; the median shows what a typical customer spends. When they diverge sharply, segment bulk and B2B orders out before analysing campaign performance.
Last reviewed October 3, 2026.