Average Order Value (AOV)

Average Order Value (AOV) is a fundamental e-commerce metric calculated by dividing total revenue by the number of orders in a given period. If your store generated $50,000 from 1,000 orders last month, your AOV is $50. AOV is one of three levers for revenue growth (alongside traffic and conversion rate), and it is often the easiest to influence through merchandising changes. Collection strategy directly impacts AOV. Collections organized by use case ('Complete Your Kitchen') encourage multi-item purchases more than collections organized by product type ('Spatulas'). Strategic product sorting — placing higher-value items in prominent positions — nudges customers toward premium options. Cross-linking related collections ('Customers who liked this collection also browsed...') creates natural add-on opportunities. Improving AOV by even 10% has a multiplicative revenue effect. If you have 1,000 orders per month and increase AOV from $50 to $55, that is $5,000 in additional monthly revenue with zero additional customer acquisition cost. Common AOV-boosting tactics include free shipping thresholds, bundle offers, tiered pricing collections, and cross-selling through related collections.