Metric

What Is AOV?

Average order value is how much a customer spends per order — and it's quietly one of the most important numbers in paid advertising, because it sets the ceiling on what you can afford to pay for a sale.


How AOV is calculated

AOV = total revenue ÷ number of orders. 500 orders and $30,000 in revenue is a $60 AOV. It's per order, not per customer — someone who orders three times counts three times — so read it next to purchase frequency for the fuller picture.

Why AOV sets your ad budget ceiling

Your maximum profitable CPA is a function of AOV and margin. Raise AOV from $60 to $90 and, at the same margin, you can suddenly afford a much higher cost per sale — which means more ROAS headroom, more audiences you can profitably reach, and more tolerance for the CPMs of competitive placements. AOV is leverage on the whole media plan.

Ways to raise AOV

  • Bundles and multi-packs that raise the natural order size.
  • Free-shipping thresholds just above your current AOV.
  • Upsells and cross-sells at the cart and checkout.
  • Volume or tiered discounts that reward bigger baskets.

AOV and the ad itself

The ad plays a role too: what you feature and how you frame the offer shapes basket size before the click. But the ad's first job is still to be watched — a higher AOV only helps if the creative earns attention at all. That's where testing the hook before you spend comes in. See ad pre-testing and customer acquisition cost.

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Frequently asked questions

What is AOV?

AOV — average order value — is the average amount spent each time a customer places an order. If 500 orders generated $30,000 in revenue, your AOV is $60. It's a core ecommerce metric because it sets how much you can afford to pay to acquire a sale.

How is AOV calculated?

AOV = total revenue ÷ number of orders. It's measured per order, not per customer, so a shopper who buys three separate times counts as three orders. Track it alongside purchase frequency to understand lifetime value.

How do I increase AOV?

Common levers are bundles, volume discounts, free-shipping thresholds, upsells, and cross-sells at checkout. A higher AOV directly raises the CPA and CAC you can profitably afford, which loosens every constraint on your ad buying.

By Nina Krecicki · Published