AOV (average order value)
Also known as: Average order value
In short
The average value of an order, calculated by dividing the specified order revenue by the number of included orders during the same period.
Define the revenue included in each order
Average order value summarizes the size of the orders in a selected group. The general calculation is included order revenue ÷ included orders. Both figures need the same time period, currency and inclusion rules.
Platforms can define the revenue basis differently. Shopify’s sales reports calculate AOV from gross sales minus discounts, excluding post-order adjustments, divided by orders. That is not automatically the same as a custom report that subtracts refunds or includes shipping.
Record the definition before comparing reports. An order is also different from an item: a basket containing several products still contributes one order to the denominator.
Illustrative calculation
Imagine a fictional store reporting $9,600 in product sales after discounts across 120 orders in one month. For this example, taxes, shipping and later adjustments are excluded. AOV is $9,600 ÷ 120 = $80.
If a handful of unusually large orders arrive, the average can rise without a similar change in the typical customer’s basket.
Read the distribution and costs
AOV alone does not describe purchase frequency, conversion rate or profit. Check order volume and relevant margin data before drawing a business conclusion. When combining groups, use their total included revenue and total orders rather than averaging their individual AOV figures.