AOVAverage Order Value
AOV is the average revenue per order. Increasing AOV is one of three core levers for ecommerce growth (alongside traffic and conversion rate).
AOV = Total Revenue / Number of OrdersWhat does AOV actually mean?
Average Order Value (AOV) measures average revenue per completed order. It's one of the three growth levers for ecommerce, alongside traffic volume and conversion rate.
AOV is increased through bundles, upsells, cross-sells, free-shipping thresholds, and tier-based discounts. A brand with a $50 AOV that increases AOV to $70 effectively earns 40% more revenue per acquired customer at the same CAC.
AOV directly affects acceptable CAC and CPA. A higher-AOV brand can profitably acquire customers at a higher CPA because each conversion contributes more revenue. This is why luxury and B2B brands tolerate $200+ CPAs that would bankrupt a $30-AOV impulse-buy product.
Example
A Shopify store generated $50,000 from 1,000 orders. AOV = $50,000 / 1,000 = $50.
When it matters
AOV is the easiest metric to lift through bundles and upsells. Ads with bundle-focused creative can lift both AOV and conversion rate.
Related terms
ROAS
ROAS measures revenue generated for every dollar of ad spend. A 4× ROAS means $4 in revenue for each $1 spent.
CAC
CAC is the total cost of acquiring one new paying customer, including ads, salaries and tooling. It's broader than CPA.
LTV
LTV is the total revenue or profit a single customer generates over their entire relationship with the business.
CVR
CVR is the percentage of clicks (or impressions) that complete a conversion event: purchase, signup, or install.
Find out which ads actually win.
advrt builds ads around your real product photos, tests them live on Meta and judges each one against your own account. Free plan, no credit card.