Average Order Value (AOV)
Average Order Value (AOV) is the average revenue earned per completed order in a chosen time period (day, week, month, or quarter). It shows how much a typical basket is worth and is calculated with a simple formula: AOV = Total order revenue ÷ Number of orders (same period).
AOV is a per-order metric. That means it’s different from:
Average Customer Value (ACV): revenue per customer in a period (captures order frequency too).
ARPU/ARPPU: revenue per user (often used in apps/subscriptions).
What counts as “revenue” in AOV depends on your reporting rules. Many commerce platforms calculate AOV using merchandise revenue after discounts, and may exclude taxes, shipping, gift cards, and post-purchase adjustments. Decide and document these rules so your reports stay consistent over time.
Why It Matters
Helps you grow revenue without more traffic by increasing what each order is worth.
Informs pricing, bundling, and promotions.
Lets you compare performance by channel, device, or audience to focus spend where baskets are largest.
Pairs with CAC and margin to check profitability of campaigns.
How to Calculate (with quick checks)
Core formula: AOV = Revenue ÷ Orders. Benchmark over time (month vs. month, quarter vs. quarter).
GA4 mapping: GA4 doesn’t label “AOV” directly; use Average purchase revenue (avg revenue per transaction) as the nearest equivalent.
Shopify nuance: Shopify’s AOV uses gross sales minus discounts and excludes post-order adjustments. (Gross sales on Shopify don’t include taxes or shipping.)
Examples
Ecommerce month: ₹18,00,000 revenue / 3,000 orders = ₹600 AOV.
Channel view: Paid Search AOV ₹1,100 vs. Organic AOV ₹800 → test bundles or thresholds on Organic to close the gap.
GA4 view: Use Average purchase revenue by source/medium to spot high-value traffic.
Best Practices to Lift AOV
Bundles & kits: Group complementary items to raise basket size.
Free-shipping thresholds: Set the bar a little above your current AOV.
Cross-sell in cart/checkout: Recommend add-ons that match the item and context (avoid irrelevant alternatives).
Volume/ tiered pricing: Encourage 2-packs/3-packs.
Loyalty & subscriptions: Offer perks or subscribe-and-save for recurring items.
On-page merchandising: Highlight higher-value variants or bundles on PDPs. (Many platforms like Shopify, BigCommerce, WooCommerce track AOV and give reporting to monitor results.)
Common Pitfalls
Mixing periods (weekly revenue with monthly orders).
Counting users instead of orders.
Forgetting refunds/discounts in the revenue figure you use.
Assuming GA4’s “Average purchase revenue per user” (ARPPU) or ARPU is the same as per-order AOV—they’re per user, not per order.
Related Terms
Average Customer Value (ACV): Revenue per customer in a period.
Customer Lifetime Value (CLV/LTV)
Customer Acquisition Cost (CAC)
FAQs
Q1. Does AOV include taxes and shipping?
Depends on your platform/report. In Shopify, AOV is based on gross sales minus discounts (gross sales exclude taxes and shipping). Check your analytics definition to be consistent.
Q2. Is AOV the same as ACV or ARPU?
No. AOV = per order. ACV = per customer (in a period). ARPU/ARPPU = per user (active or paying).
Q3. What’s a “good” AOV?
It varies by industry, price point, and market. Benchmark against your own past performance and close competitors (use GA4 and platform reports).
Q4. How do I track AOV in GA4?
Use Average purchase revenue (closest to AOV) and break it down by source/medium, campaign, device, or country to see where baskets are largest.
Q5. Fastest ways to raise AOV?
Bundles, cart/checkout cross-sells (relevant items), threshold offers, and subscribe-and-save for replenishable products.
Need to Know