What is AOV (Average Order Value)?
AOV (Average Order Value) is an ecommerce metric that shows how much revenue, on average, you earn per completed order. It helps answer: Are customers buying more per checkout over time? AOV is fundamental for pricing, bundling, and channel optimization across tools like GA4, Matomo, Plausible, and Simple Analytics.
Formula:AOV = Revenue from orders ÷ Number of orders
Example: If your shop made $24,000 from 800 orders this month, AOV = $24,000 ÷ 800 = $30.
How to use AOV
- CRO & merchandising. Pair AOV with Conversion Rate to spot whether changes (free shipping thresholds, bundles, upsells) nudge buyers to add more items without hurting checkout completion.
- Channel mix. Compare AOV by traffic Source and Campaign (via UTM tags). Higher AOV can justify higher CPC or CPM, while low AOV may require tighter bid caps or a different Attribution Model.
- Profit & payback. Combine AOV with CAC (see CPL or CPA) and margins to evaluate payback periods and true ROI. For retention modeling, link AOV to LTV: bigger baskets often predict higher lifetime value—validated with Cohort analysis.
Implementation notes
- Scope. AOV includes only completed orders. Exclude cancellations, refunds, and tax/shipping if you want product-only AOV; be consistent across reports.
- Segmentation. Track AOV by device, locale, new vs. returning users, and key acquisition channels to find pockets of opportunity.
- Sampling & identity. Verify your reporting identity model (e.g., by Client ID or user ID) so that orders and sessions are joined correctly.
- Complementary metrics. Monitor Session depth and Pageview patterns; use Micro-Conversion rates (add-to-cart, begin checkout) to diagnose where AOV tactics might stall.
Benchmarks & pitfalls
There is no universal “good” AOV—context matters (category, margins, shipping). Avoid chasing AOV at the expense of volume; pushing upsells that depress conversion will reduce total revenue. Track Revenue = Orders × AOV, not AOV in isolation.
Quick checklist
Validate with cohorts and margin impact before scaling.
Define a clear AOV calculation (what’s in/out).
Break down AOV by channel and campaign.
Test thresholds (free shipping, bundle discounts).