Ecommerce Glossary

What Is Average Order Value (AOV)?

Average Order Value (AOV) is the average amount spent per order. A higher AOV means customers are buying more items or choosing higher-priced products.

How Do You Calculate Average Order Value?

Average Order Value is calculated as:

If your store makes $600 from 20 orders, your AOV is $30.

This tells you that, on average, each order brings in $30.

Why a High Average Order Value (AOV) Matters?

A high average order value (AOV) means each customer spends more per order, which directly boosts your revenue without needing more customers. 

What Are the Benefits of a Higher Average Order Value (AOV)?

A higher Average Order Value (AOV) helps your store earn more without extra traffic. A small increase per order adds up quickly.

• Earn more per customer with every slightly larger order.
• You rely less on paid ads to hit your revenue goals
• Revenue stays steady even if traffic slows down.
• Customers return more often after a strong first purchase.
• Higher-priced items become easier to sell as trust and confidence grow.

A higher AOV strengthens your store with very small improvements.

How to Improve Average Order Value (AOV)? 

Average Order Value (AOV) usually increases when small details make shoppers feel comfortable adding a bit more to their order. Here are a few small tweaks that work:

• Clear bundles that show items that pair well together
• Discounts for buying extra units, such as 2 or more
• Free shipping once they cross a certain amount
• Helpful product recommendations
• Add-ons shown right in checkout
• Strong product photos
• Short, simple product descriptions
• A fast, distraction-free checkout 

These small improvements make it easier for shoppers to say “yes” to one more item.

How Shopify Helps Improve Average Order Value (AOV)?

Shopify helps raise your Average Order Value (AOV) by giving shoppers more reasons to add extra items before they check out. When customers buy more per order, your AOV goes up.

• “You may also like” products on the page
• Simple tools to make bundles or discounts
• A checkout that people trust
• Shop Pay, which lets people buy quickly, even with multiple items
• A clean cart that shows small add-ons

These features just help shoppers notice extra items they might want.

What are the Common Mistakes that Lower the Average Order Value (AOV)?

Small issues in the shopping experience can cause AOV to drop. Some common mistakes include:

• Showing too many upsells at once, which can overwhelm customers.
• Hiding add-ons or extras deep in the store, making them hard to find.
• Not promoting product bundles that encourage larger orders.
• Relying only on discounts instead of value-added strategies.
• Forgetting to check how the site and checkout look on mobile.

Fixing these simple problems often helps increase AOV fairly quickly.