Business & Sales

What Is Average Order Value (AOV)?

Average order value (AOV) is the average amount customers spend per order over a period. AOV = total revenue ÷ number of orders. It is a common e-commerce and retail metric used alongside order volume to understand revenue.

Example

Revenue of 12,000 from 300 orders gives an AOV of 40.

Why It Matters

Many costs, such as shipping or per-order fees, are fixed per order, so a higher AOV spreads them over more revenue.

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🔗 Related Terms

Revenue Unit Economics Mean (Average)

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.