What Is AOV (Average Order Value)? Formula & How to Increase It (2026)
AOV (Average Order Value) is the average amount a customer spends per order, calculated by dividing total revenue over a period by the number of orders in that same period. It measures how much money each transaction brings in, and it's one of the three core ecommerce growth levers (traffic, conversion rate, AOV). Raising AOV is often cheaper than acquiring new customers, because you're earning more from people who already want to buy.
The formula
AOV = Total revenue / Number of orders
Note the denominator is orders, not customers or units. One customer placing two orders counts as two; one order with three items still counts as one.
Worked example
Say a shop does 12,000 dollars in total revenue over a week across 400 orders:
AOV = 12,000 / 400 = 30 dollars
So the average order brings in 30 dollars. If you lift AOV from 30 to 36 (a 20% increase) with orders held flat, revenue also rises 20% — with almost no extra acquisition cost. To see how much of that extra revenue actually lands as profit, use our free profit calculator.
Six levers to raise AOV
| Lever | How | When it works best |
|---|---|---|
| Free-shipping / spend threshold | Set the threshold just above current AOV | AOV sits just under a psychological price |
| Upsell at checkout | Recommend a complementary low-price add-on | Orders are single-item |
| Bundles | Package items often bought together at a small discount | Clear pairing exists |
| Quantity discount | Buy 2 save X, buy 3 save more | Consumables / stockable goods |
| Tiered rewards / gift threshold | Free gift or points at a spend level | Repeat-purchase categories |
| Raise unit price | Increase price or push a premium SKU | Demand is price-inelastic |
How AOV relates to other metrics
AOV only tells you how much money comes in, not how much you keep. Over-discounting to inflate AOV can quietly shrink your contribution margin. So read AOV alongside profit margin: the ideal is AOV and per-order profit rising together. It's also a building block of GMV — GMV is roughly orders multiplied by AOV.
Frequently asked questions
Is AOV the same as basket size? Roughly, in value terms — AOV is the average dollar value per order. "Basket size" can also mean average items per order, so be clear which you mean; in ecommerce they're often used interchangeably for the dollar figure.
What's a good AOV? There's no universal number — it's highly category-dependent. Small beauty items might sit in the low teens; large home goods might be over a hundred. Watch your own trend and your competitors' range rather than chasing an absolute figure.
Will raising AOV hurt conversion rate? It can. Forcing higher prices or high thresholds can scare off price-sensitive buyers. The safer play is additive tactics — upsells and bundles — that let willing buyers spend more without pressuring everyone.
How often should I check AOV? Track the trend weekly or monthly. Daily swings are noisy; comparing AOV before and after a promotion or bundle change is far more meaningful.
To tie AOV and profit together, don't just watch revenue — check what each order actually earns first, with our free profit calculator.
Leads EshopPick's product-research and data desk. Focuses on TikTok Shop US sourcing frameworks, fee-and-profit math, and platform comparisons. Every take is grounded in our weekly real-sales data and Opportunity Score — practical calls, not chart-chasing.