AOV is revenue over the number of orders — how much a typical checkout is worth. Raising it is often cheaper than buying more traffic, so it’s a core growth lever.
The example
$9,600 revenue, 120 orders.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Revenue | 9600 |
| 3 | Orders | 120 → $80 |
The formula
The formula:
How it works
How it works:
- Divide total revenue by the number of orders.
- Lift AOV with bundles, upsells, and free-shipping thresholds — cheaper than new traffic.
- Watch the median order too — a few large orders skew the mean.
- Revenue =
AOV × orders, so AOV is a direct multiplier on the top line.
Free-shipping thresholds nudge AOV. Setting the threshold just above AOV (e.g. free shipping over $75 when AOV is $80… wait, set it where it pulls smaller carts up) encourages add-ons. Model it: count orders just below the threshold and estimate the lift if they reach it — a common, measurable AOV play.
Try it: interactive demo
Revenue and number of orders.
Variations
Revenue per session
With conversion:
Median order
Typical order:
Items per order
Basket size:
Pitfalls & errors
Mean vs median. Big orders pull AOV up — check the median.
Net or gross. Decide whether AOV is before or after discounts and shipping.
Zero orders. No orders gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate average order value in Excel?
How do I raise AOV?
Should I look at the median order too?
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