How do I increase AOV?

Common strategies: product bundling, minimum order thresholds for free shipping, upsell and cross-sell recommendations at checkout, tiered pricing that incentivizes larger purchases, and loyalty programs that reward higher spending. Track AOV by customer segment and channel to identify optimization opportunities.

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GLOSSARY

AOV (Average Order Value)

Average Order Value (AOV) is the average dollar amount spent per transaction on a platform or e-commerce site, calculated by dividing total revenue or GMV by the number of orders. AOV is a key lever for unit economics: higher AOV can offset lower transaction volume and improves CAC payback. It is tracked alongside repeat rate and conversion rate to evaluate commercial health.

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

Frequently asked questions

Related terms

GMV Take rate

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Revenue per employee Repeat rate