Definition
Average order value (AOV)
Average order value, or AOV, is total revenue divided by number of orders over a period. It measures how much a customer spends per transaction, and it is one of only three levers on ecommerce revenue: more visitors, a higher conversion rate, or a larger average basket.
AOV is the cheapest of the three levers to move, because it works on traffic you have already paid for. It is also the easiest to move badly: a basket inflated by items the shopper was not confident about will show up again as returns a month later.
Read it alongside return rate rather than on its own. Net AOV after returns is the honest figure, and it is the one that tells you whether a merchandising change actually added revenue or just moved it around.
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