Glossary

Average Order Value (AOV)

The average amount a customer spends per order.

Average Order Value is your total revenue divided by your number of orders over the same period. It is one of the most important levers in e-commerce because raising it lifts revenue without needing a single extra visitor — through bundles, upsells, and free-shipping thresholds. Because you can grow AOV on traffic you have already paid for, it often beats chasing more visitors. Work out yours with our free AOV calculator.

Build with a Shopify partner → Back to the glossary

Related terms

Conversion Rate (CVR) The share of visitors who complete a purchase. Read definition → Customer Lifetime Value (LTV) The total profit a customer is worth over time. Read definition → Free-Shipping Threshold The order value at which shipping becomes free. Read definition →

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