What is average order value (AOV)?

A worked example

Last month a shop had 1,200 orders and $84,000 in revenue. AOV = 84,000 ÷ 1,200 = $70.

Revenue can be decomposed into three numbers: revenue = visitors × conversion rate × AOV. With 40,000 visitors, a 3% conversion rate and a $70 AOV, the shop earns $84,000. Raising AOV to $77 (+10%) adds as much revenue as raising conversion to 3.3% — and is often easier, through bundles, free-shipping thresholds or a recommended add-on.

Reading changes in AOV

• Mix shifts. A promotion on a cheap product lowers AOV even if every product sells the same.
• Discounts. Coupons reduce AOV per order but can raise the number of orders.
• Outliers. One wholesale order can lift a small shop's AOV for a month. Check the median as well.
• Currency. If you sell in several currencies, convert to one before averaging.

AOV in TapCub

TapCub builds an orders table from your purchase event, using the revenue, currency and order ID properties you map in business settings. Every order is converted to the site's base currency at that day's exchange rate. AOV is GMV ÷ orders, and appears in the commerce report next to orders, buyers, paying rate, repeat rate, refunds and the purchase funnel, and can be used in any chart as a built-in measure.

Common mistakes

• Raising AOV at the cost of conversion. A higher free-shipping threshold can lift AOV and lose more orders than it gains.
• Counting refunded orders. Decide whether AOV is before or after refunds and keep it consistent.
• Averaging per customer by mistake. Revenue per customer (ARPU or ARPPU) is a different metric from revenue per order.

Related guides: Ecommerce KPIs and Revenue Tracking with Events.