E-commerce Glossary

AOV (Average Order Value)

Average amount spent per order in your store.

AOV is calculated by dividing total revenue by the number of orders. Formula: AOV = Total Revenue / Number of Orders. If you generate $50,000 from 1,000 orders, your AOV is $50. Increasing AOV through upselling or bundles is often more cost-effective than acquiring new customers. It's a direct lever on margin and profitability for every transaction.

Related terms

ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition CLV / LTV (Customer Lifetime Value)Total value a customer generates over their entire relationship.See definition
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