Average Order Value (AOV) is the average amount a customer spends per transaction in your store. It is calculated by dividing total revenue by the number of orders.
Average Order Value (AOV) is the average amount a customer spends per transaction in your store. It is calculated by dividing total revenue by the number of orders.
AOV = Total Revenue ÷ Number of Orders AOV is one of the three core levers of ecommerce growth, alongside traffic and conversion rate. Increasing AOV means extracting more revenue from each customer interaction without needing to acquire additional visitors. Common AOV-boosting tactics include bundling, upselling, cross-selling, tiered pricing, and free shipping thresholds. Even a small AOV increase compounds significantly over hundreds or thousands of monthly orders.
AOV = Total Revenue ÷ Number of Orders Your store generated £15,000 from 300 orders last month. Your AOV is £15,000 ÷ 300 = £50. If you increase AOV by just £5 through upsells, your monthly revenue rises to £16,500 with no extra traffic needed.
Acquiring new customers is expensive. Increasing AOV lets you grow revenue from existing traffic, which is almost always cheaper and faster than acquiring new visitors. It also improves your unit economics by spreading fixed fulfilment costs across a larger order value.
Trying to increase AOV with discounts that actually reduce margin per order
Ignoring AOV differences between acquisition channels and customer segments
Not testing upsell and cross-sell offers to find what actually moves the needle
StoreLyst tracks AOV over time and breaks it down by channel, product collection, and customer segment. You can see exactly which strategies are lifting order values and which are not.
AOV varies enormously by niche. Fashion stores typically see £50–£100, electronics £150–£300, and beauty/cosmetics £30–£60. The right benchmark depends on your products and market. Focus on improving your own AOV trend rather than chasing a universal number.
Proven strategies include product bundling, volume discounts (buy 2 get 10% off), free shipping thresholds set just above your current AOV, post-purchase upsells, and cross-selling complementary items on the cart page.
AOV can be skewed by a few very large or very small orders. If your order values vary widely, also track median order value for a more representative picture. For most stores, AOV is a reliable enough metric for decision-making.
It depends on your reporting preference, but most ecommerce analytics calculate AOV from net revenue (excluding tax and shipping). This gives a cleaner picture of what customers spend on actual products. Be consistent with whichever method you choose.
Stop calculating in spreadsheets. Get real-time aov tracking for your Shopify store.