AOV calculator
Average order value is revenue divided by order count. Forty-eight thousand across 800 orders is an AOV of 60. If those orders came from 600 customers, revenue per customer is 80 at 1.33 orders each.
How to calculate AOV
AOV is the cheapest lever in e-commerce because it costs nothing to acquire the extra revenue. Raising it by ten per cent through bundling, a free-shipping threshold or a well-placed upsell drops straight to contribution, whereas winning ten per cent more customers costs ten per cent more acquisition spend. The caveat is that averages hide distributions: a handful of very large orders can lift AOV while the typical basket falls, so the median order value is worth watching alongside it.
Questions
Average order value. Total revenue divided by the number of orders in the same period.
Bundles, volume discounts, a free-shipping threshold above the current AOV, and relevant upsells at checkout.
Only if every customer orders once. Revenue per customer is AOV times orders per customer.
Be consistent. Most shops use ex-tax merchandise value, excluding shipping, so the figure tracks merchandising rather than postal rates.
Averages are pulled by outliers. Check the median too: a few huge orders can mask a falling typical basket.