Average Order Value

Also called AOV

Average order value: the average amount a customer spends per transaction, a core e-commerce metric.

AOV = total revenue / number of orders

Why it matters

Raising AOV, through bundles, upsells, or pricing, grows revenue without needing more traffic. It is a key lever for making paid acquisition math work in D2C and retail.

For example

An online store does 5 lakh in sales across 500 orders in a month, so its average order value is 1,000 rupees.

Related terms

Gross Merchandise Value Repeat Purchase Rate Upsell

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

eChai Partner Brands