Average Order Value

The average revenue per order over a period.

Area: Sales
Abbreviation: AOV
In this area: 14 terms of 259

Average order value divides revenue by the number of orders. It shows whether growth is coming from more orders or larger ones, which have very different cost implications.

Because fulfilment cost is largely per order rather than per unit, raising AOV improves margin faster than raising order count. Bundles, minimum-order thresholds and kitting all target it.

How it is calculated

AOV = Total revenue ÷ Number of orders

Exclude tax and freight for a clean comparison across periods.