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.

Go deeper

16 More Startup Metrics a16z · article Average Order Value is defined here among the core startup metrics investors actually track, with how to read it honestly. Open a16z.com →

Related terms

Also in Starting Up

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

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