If you want to grow your store without constantly chasing new traffic, this one metric can make a massive impact: Average Order Value (AOV). When you know how much your customers spend per order, you can make smarter decisions about pricing, promotions, and marketing.
Read on to know more about how to calculate your AOV, and more importantly, how to use it to drive growth, boost profits, and turn one-time buyers into high-value customers.
Learn How To Calculate Average Order Value
If you can track revenue and orders, you can calculate Average Order Value. It’s a quick win—tracking AOV gives you insight into how customers shop and helps you optimize everything from ad spend to pricing strategies. If you want to offer volume discounts, upsells, or bundles, AOV shows you exactly where to start.
What Is Average Order Value?
Average Order Value is the average amount your customers spend every time they place an order. Simple, right? But don’t underestimate its power.
In fact, shoppers around the world spend about $121 per order. That benchmark gives you a rough idea of where your store stands and where there’s room to grow.
Here’s why calculating AOV matters: Increasing it means more revenue without needing more traffic. That’s huge. Instead of pouring money into acquiring new customers, you’re getting more value from the ones you already have.AOV is also a core metric that ties directly into other vital KPIs like conversion rate and customer acquisition cost (CAC).
If you’re serious about scaling your store efficiently, AOV is a number you need to watch—closely.
How Do You Calculate Average Order Value?
Here’s exactly how to calculate average order value:
- Determine the total revenue for a given time period.
- Determine the number of orders for a given time period.
- Use this formula:
- AOV = Total Revenue ÷ Number of Orders
Let’s say you made $10,000 from 250 orders in a month.
Your AOV = $10,000 ÷ 250 = $40
Easy, right?
You can pull this data from Shopify reports, Google Analytics, or your store’s reporting dashboard. For deeper insight, track your AOV over time, especially before and after a new campaign, promo, or pricing change. That’s where the real gold is.
Why Is Average Order Value Important?
Calculating your AOV doesn’t just tell you what people spend, it shows how they buy.
- It reveals buying patterns and customer behavior
- It helps identify which bundles or products drive value
- It Informs smarter ad spend and pricing strategies
- It plays a huge role in forecasting lifetime value and return on ad spend
If AOV is high, you can afford to spend more to acquire a customer. You can use AOV data to target the right products at checkout, know which products to stock or promote more heavily, or identify which specific product combinations boost AOV.
Ultimately, when you know your AOV, you can better predict profitability and build offers that truly move the needle.
Calculate Average Order Value and Make Smarter Decisions
Here’s the bottom line: Calculating your AOV is simple. But when you use that data to tweak pricing, build bundles, or introduce volume discounts, it becomes a powerful lever for growth. Start by checking your current AOV. Then experiment: try a “buy more, save more” offer or bundle your best-sellers. Keep tracking and see what moves the needle.
Need a tool to help? The Bulk Discount Now app by Website On Demand makes it easy to offer volume-based discounts that can increase AOV while leaving your margins intact. Get started today.
