AOV (Average Order Value)
MetricAOV is the average dollar amount spent by a customer whenever they place an order.
Layman Explanation & Analogy
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.
Mathematical Formula
AOV = Total Revenue ÷ Total Number of Orders
Worked real-world example
$50,000 in revenue from 1,000 orders gives an AOV of $50.
What people get wrong & common traps
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.
Related terms
Last reviewed August 28, 2026.