HomeBlogFinance FundamentalsAverage Order Value (AOV): Definition, Formula & Calculator

Average Order Value (AOV): Definition, Formula & Calculator

By Irene LeDecember 12, 202412 min read
Average Order Value (AOV): Definition, Formula & Calculator
  • Measure revenue efficiency: Instead of focusing solely on increasing the number of customers, improving AOV allows you to generate more revenue from existing traffic.
  • Optimize marketing campaigns: AOV helps assess the effectiveness of pricing strategies, discounts, and promotions.
  • Enhance customer retention: A higher AOV often indicates strong customer satisfaction and loyalty.
  • Improve profit margins: Selling more products per order helps reduce costs per transaction, boosting overall profitability.
  • AOV (Average Order Value): Measures the average revenue per order, regardless of the number of items purchased.
  • ACV (Average Cart Value): Focuses on the total value of items in a customer's cart before checkout.

track net profit with trueprofit

track net profit with trueprofit

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Irene Le

Content Manager at TrueProfit & eCommerce Marketing Specialist

Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.

avatarIrene Le

Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.

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