What is average order value?
Average order value
Average order value is the mean amount a customer spends in a single transaction — revenue divided by number of orders.
Formula
AOV = Revenue ÷ Number of orders
AOV is frequently the cheapest lever in the whole funnel. Raising it costs nothing in ad spend, applies to every future order, and doesn't require winning a single extra customer — bundles, an upsell at checkout or a free-shipping threshold all move it.
It also changes what you can afford to bid. A business that lifts AOV from $60 to $90 has raised its acquisition ceiling by half without touching the ads.
Watch the median as well as the mean. A handful of very large orders can pull the average up and hide the fact that most customers spend far less than the headline figure suggests.