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GLOSSARY

AOV (Average Order Value)

Average transaction size on the platform.

Why it matters

Higher AOV can offset lower volume; important for unit economics and CAC payback.

Benchmarks

Varies wildly by category. Track trend over time and segment by customer type.

Worked example

Total GMV $340k; Orders 4,000 → AOV = $340k/4,000 = $85.

Common pitfalls

Including cancelled orders; not segmenting new vs repeat; ignoring shipping/fees in calculation.

How to show in your deck

Traction slide: AOV with trend and comparison to category benchmarks.

Deck snippet

AOV $85 (+12% YoY); 2.3 items per order.

Formulas

AOV
Total revenue (or GMV) / Number of orders

FAQs

Related terms

GMVTake rate
Revenue per employeeRepeat rate