AOV stands for Average Order Value, which is a metric used in e-commerce to measure the average dollar amount spent by customers during a transaction. It's calculated by dividing the total revenue by the number of orders.


The significance of AOV is that it helps e-commerce businesses understand the purchasing behavior of their customers, and can be used to set sales targets and make strategic decisions about pricing and promotions.

Use Cases

A use case for AOV would be for an e-commerce store that wants to increase their overall revenue. By analyzing their AOV, they may find that their average order value is low compared to industry standards. They can then use this information to implement strategies to increase the AOV, such as offering bundle deals, upselling or cross-selling products, or adjusting prices. By increasing their AOV, the store can increase their revenue without necessarily increasing the number of orders.