If you run an online store, you care about revenue per order as much as total orders. Average order value (AOV) tells you how much customers spend each time they buy. A higher AOV means more revenue without necessarily more traffic or conversions—so improving AOV is often one of the fastest levers for growth. This guide covers what AOV is, how to calculate it, and practical tactics to increase it.
What is Average Order Value (AOV)?
Average order value (AOV) is the average amount of money a customer spends per order. It’s total revenue over a period divided by the number of orders in that same period. AOV is used to understand purchasing behavior, set marketing and discount thresholds, and compare performance across channels or time periods. It’s especially useful alongside conversion rate and customer lifetime value (LTV): conversion tells you how many visitors buy, LTV tells you how much a customer is worth over time, and AOV tells you how much they spend per transaction.
How to Calculate AOV
The formula is simple:
AOV = Total revenue ÷ Number of orders
Example: In a month you make $30,000 in revenue from 600 orders. AOV = $30,000 ÷ 600 = $50. You can calculate AOV for a day, week, month, or year—just keep revenue and order count for the same period. Many ecommerce platforms and analytics tools report AOV automatically; you can also compute it from your orders export or use a dedicated calculator to model how changes (e.g. higher AOV from upsells) affect revenue and profit.
How to Increase Average Order Value
These tactics are widely used because they work. Pick a few that fit your store and test them.
1. Bundle products
Offer “buy X and Y together” or “complete the look” bundles at a slightly lower combined price than buying separately. Bundles increase the items per order and make the higher total feel like a deal. Use clear bundle names and show the savings (e.g. “Save 15%” or “$X off when bought together”).
2. Upsells and cross-sells
At checkout or on the product page, suggest a better tier (upsell) or related items (cross-sell): “Customers also bought…”, “Upgrade to…”, or “Frequently bought together.” Keep the offer relevant and optional—one or two suggestions work better than a long list.
3. Free shipping threshold
Set a minimum order value for free shipping (e.g. “Free shipping on orders over $75”). Many customers will add an item or two to reach the threshold. Show a progress bar (“Add $X more for free shipping”) so they know exactly how much to add. Make sure your margin still works at that threshold.
4. Product recommendations
Use “You might also like” or “Often bought with” blocks on product and cart pages. Recommendations can be rule-based (same category, same price band) or algorithm-based if you have the data. Test placement and number of recommendations to balance AOV lift and clarity.
5. Minimum order or “spend more, save more”
Incentivize a higher basket with a small discount or gift at a threshold (e.g. “Spend $100, get 10% off” or “Spend $80, get a free sample”). Communicate the incentive clearly in the cart and in marketing so customers know what to aim for.
6. Subscriptions and repeat options
For products that get repurchased (consumables, refills), offer “Subscribe and save” or “Add to next order” so customers buy multiple units or commit to a schedule. That raises revenue per order and can improve retention.
Model the impact with our AOV Optimizer
Want to see how a higher AOV affects revenue and profit? Use our free AOV Optimizer to model different scenarios—change AOV, conversion rate, and traffic to see the impact on total revenue and margins. No signup required.