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What Is Average Order Value (AOV)?
Average Order Value is the mean revenue per transaction in a given period.
AOV = Total Revenue / Number of Orders
Why AOV Is the Highest-ROI Growth Lever
Raising AOV increases revenue without increasing customer acquisition cost (CAC) or traffic. A 10% AOV improvement contributes 10% more revenue to every existing customer interaction.
AOV Benchmarks by Sector
| Sector | Typical AOV |
|---|---|
| Luxury / fashion | $150–400 |
| General e-commerce | $50–150 |
| Grocery / FMCG | $40–80 |
| SaaS (per-transaction) | $200–500 |
| Digital goods | $15–50 |
Revenue per Visitor
RPV = Total Revenue / Monthly Visitors
RPV combines conversion rate and AOV into one metric. Improving either improves RPV.
Tactics to Increase AOV
- Upselling: Offer a higher-tier version at checkout
- Cross-selling: "Frequently bought together" recommendations
- Free shipping thresholds: "Add $15 more for free shipping" drives orders above a floor
- Bundles: Combine products at a slight discount — customers spend more while perceiving value
- Volume discounts: Lower per-unit price for larger quantities